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Get filing alertsConcentrix reports Q2 revenue up 1.9% YoY to $2.46B, record operating cash flow of $258M
Filed June 29, 2026 · Period ending June 29, 2026 · ~1 min read
Key Changes
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Q2 revenue $2.46B, up 1.9% YoY (0.6% constant currency); operating margin compressed to 3.9% from 6.1% prior year, though non-GAAP operating income held at 11.9% margin
Exhibit 99.1 view on EDGAR → -
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Operating cash flow hit record $258M for a second quarter, with adjusted free cash flow of $242M despite year-over-year operating income decline
Exhibit 99.1 view on EDGAR → -
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FY2026 guidance: revenue $9.925B–$10.025B (0.25%–1.25% constant currency growth), non-GAAP EPS $10.83–$11.18, adjusted free cash flow $630M–$650M
Exhibit 99.1 view on EDGAR → -
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Balance sheet shows $202.7M assets held for sale and $172.3M liabilities held for sale as of May 31, 2026, new line items indicating pending divestiture
Exhibit 99.1 view on EDGAR → -
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Board declared quarterly dividend of $0.36/share, payable August 4 to shareholders of record July 24, continuing regular dividend program
Exhibit 99.1 view on EDGAR →
Summary
Concentrix delivered modest top-line growth in Q2 fiscal 2026, with revenue rising 1.9% year-over-year to $2.46 billion, though constant-currency growth was just 0.6%.
The headline story is the divergence between operating performance and cash generation: GAAP operating margin compressed sharply to 3.9% from 6.1% in the prior-year quarter, yet the company posted a record $258 million in operating cash flow for a second quarter. Non-GAAP metrics showed more stability, with operating margin at 11.9% versus 12.6% prior year.
The balance sheet reveals $202.7 million in assets held for sale, a new line item signaling a pending divestiture not detailed in the earnings release. Full-year guidance points to anemic constant-currency revenue growth of 0.25%–1.25% and non-GAAP EPS of $10.83–$11.18, with expected adjusted free cash flow of $630M–$650M. The company continues its regular dividend at $0.36 per share quarterly. For holders, the key question is whether strong cash conversion can offset margin pressure and sluggish organic growth as the company reshapes its portfolio.
Section-by-Section Diff
Event · Exhibit 99.1
Concentrix reported Q2 2026 results with revenue of $2.46B (+1.9% YoY), record $258M operating cash flow, and declared a $0.36/share dividend.
Added in current filing · view on EDGAR →
Revenue of $2,462.5 million, an increase of 1.9% year-on-year on an as reported basis compared to revenue of $2,417.4 million in the prior year second quarter. The Company grew revenue 0.6% year-on-year on a constant currency basis.
Concentrix reported second quarter fiscal 2026 revenue of $2.46 billion, up 1.9% year-over-year as reported and 0.6% on a constant currency basis. Operating income declined to $95.4 million (3.9% margin) from $148.3 million (6.1% margin) in the prior year quarter, while non-GAAP operating income was $292.0 million (11.9% margin) versus $303.7 million (12.6% margin) in the prior year. Diluted EPS was $0.86 versus $0.63 in the prior year quarter, and non-GAAP diluted EPS was $2.63 versus $2.70 in the prior year quarter.
Added in current filing · view on EDGAR →
Full year reported revenue of $9.925 billion to $10.025 billion. Based on current exchange rates, these expectations assume an approximate 75-basis point positive impact of foreign exchange rates compared with the prior year. The guidance implies constant currency revenue growth for the full year of 0.25% to 1.25%.
Concentrix provided full-year fiscal 2026 guidance for revenue of $9.925 billion to $10.025 billion (0.25% to 1.25% constant currency growth), non-GAAP operating income of $1.200 billion to $1.230 billion, and non-GAAP diluted EPS of $10.83 to $11.18. The company expects to generate approximately $630 million to $650 million of adjusted free cash flow in fiscal 2026. The effective tax rate is expected to be approximately 24.5%.
Added in current filing · view on EDGAR →
Assets held for sale 202,738 — ... Liabilities held for sale 172,259 —
The balance sheet as of May 31, 2026 shows $202.7 million in assets held for sale and $172.3 million in liabilities held for sale, both new line items not present at November 30, 2025. The income statement includes a $0.96 million loss on held for sale for the quarter. This indicates the company has classified certain operations or assets as held for sale during the second quarter.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 6, 2026 · How we verify