CNXC Stock Forecast & Price Target

Concentrix Corp is poised for a positive outlook due to its anticipated improvement in gross margins, driven by the integration of more technology into its offerings and a shift towards offshore human agent delivery. The company expects year-over-year growth in key sectors such as retail, travel, ecommerce, and banking, financial services, and insurance, each projected to increase by 5%. Additionally, total revenue has shown consistent growth, with a year-over-year increase of 4% and positive revenue guidance reflecting an upward adjustment in constant currency growth expectations for the full year.

Concentrix Corp experienced a decline in its adjusted EBITDA margins from 16.3% year-over-year and sequentially from 14.8% to 14.5% in fiscal Q3/25, indicating weakening operational efficiency. Furthermore, the company's adjusted operating margins decreased from 13.9% year-over-year and sequentially from 12.6% to 12.3% in the same fiscal quarter, alongside a significant slowdown in EPS growth forecast, projecting an 11% year-over-year decline despite a 5% sequential increase. The revenue guidance for fiscal year 2025 and non-GAAP operating income revised downwards, reflecting challenges such as excess capacity and higher-than-expected net interest costs, contributing to a disappointing financial performance.