Concentrix Corporation (CNXC) Stock: Tanks as $1.5B Goodwill Impairment Drives Huge Q4 Loss

TLDR

• $1.52B goodwill impairment pushed CNXC into a deep Q4 operating loss
• Revenue beat guidance, but margin pressure weighed on non-GAAP results
• Strong cash flow supported buybacks and balance-sheet deleveraging
• Full-year loss driven by impairment despite nearly $9.8B in revenue
• 2026 outlook calls for modest growth with focus on margin recovery

Concentrix Corporation (CNXC) stock fell sharply as the company reported a large quarterly loss driven by a major goodwill impairment. CNXC traded lower after the firm posted a $1.5 billion non-cash charge that pushed operating results into negative territory.  The update arrived with mixed revenue performance and softer non-GAAP metrics, and it shaped a cautious tone for fiscal 2026.CNXC is trading at $39.49, down 2.45%, showing a sharp intraday sell-off .

Concentrix Corporation, CNXC

Q4 Results Show Heavy Hit from Goodwill Impairment

CNXC reported Q4 revenue of $2.55 billion, and it exceeded guidance on a constant currency basis. However, the goodwill impairment of $1.52 billion forced the company to record a $1.38 billion operating loss. CNXC also posted weaker non-GAAP operating income because margins contracted and adjusted EBITDA fell year over year.

The quarter showed reduced non-GAAP EPS, and CNXC noted lower contributions across key profitability lines. Yet operating cash flow remained strong at $344 million, and adjusted free cash flow reached $287 million. CNXC also executed share repurchases worth $56 million during the period, and the program still holds significant capacity.

The company maintained steady revenue momentum, and constant currency growth reached 3.1 percent. But CNXC faced margin compression across most segments, and the impairment overshadowed operational gains. Even so, management outlined confidence in its transformation strategy and highlighted momentum across digital and automation offerings.

Full-Year 2025 Performance Reflects Margin Pressure

CNXC delivered full-year revenue of $9.83 billion and constant currency growth aligned with earlier expectations. Nevertheless, the goodwill impairment created a full-year operating loss of $918 million. CNXC also reported lower non-GAAP margins and reduced adjusted EBITDA as integration and technology spending continued.

The firm generated $807 million in operating cash flow, and it produced $626 million in adjusted free cash flow. CNXC reduced net debt by $184 million, and it returned $258 million to shareholders through dividends and repurchases. The company emphasized that capital allocation remained disciplined despite a challenging profitability picture.

The year ended with non-GAAP EPS slightly below the prior period, and CNXC said revenue expansion offset some margin slippage. Yet the impairment dominated the financial narrative, and it reflected market-driven pressures on the company’s valuation. However, the company signaled that long-term positioning remained intact as technology solutions demand continues to expand.

2026 Outlook Signals Modest Growth Expectations

CNXC issued guidance that pointed to steady but moderate top-line expansion for fiscal 2026. The company projected revenue between $10.04 billion and $10.18 billion, and the outlook suggested constant currency growth of up to three percent. CNXC expects non-GAAP operating income to improve and EPS to rise as integration work stabilizes.

The first quarter forecast targets revenue near $2.48 billion with slight constant currency improvement. CNXC anticipates non-GAAP EPS between $2.57 and $2.69, and the tax rate should remain near 25 percent. The company also expects foreign exchange to provide a small positive lift.

Management outlined planned focus areas, and CNXC aims to strengthen automation and transformation services. Additionally, the company expects stable cash generation to support ongoing dividends and the repurchase program. CNXC positioned its strategy around margin recovery and cost discipline as fiscal 2026 begins.

The post Concentrix Corporation (CNXC) Stock: Tanks as $1.5B Goodwill Impairment Drives Huge Q4 Loss appeared first on CoinCentral.