Concentrix Corp — Form 10-Q
Filed July 2, 2026 · analyzed by the Periodic Agent
10-Q
▼ Likely negative
significance 45/100
What the filing says
Concentrix reported Q2 FY2026 revenue of $2,462.5M (up 1.9% YoY) and six-month revenue of $4,962.9M (up 3.6% YoY). However, gross margin contracted 170 bps to 33.4% in Q2 and 190 bps to 33.7% YTD, driven by $60.2M in restructuring severance costs affecting ~20,000 employees. Operating income fell 35.7% to $95.4M in Q2 and 32.5% to $214.0M YTD. The company refinanced $600M of 2026 notes due August with new 6.5% notes due 2029 (issued Feb 2026), incurring $6.3M debt extinguishment costs. Net income was $55.3M in Q2 ($76.9M YTD) versus $42.1M/$112.4M prior year.
Why this rating
Moderate negative. Margin compression (170-190 bps), restructuring drag, and 32-36% operating income decline are real operational headwinds. However, relative to $2.9B market cap, a single quarterly decline and cost-cutting initiative don't signal business transformation. Revenue growth remains modest but positive; debt refinance is routine.
View original filing on SEC.gov ↗
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