Gross margins have contracted from a 36.9% peak in 2023Q4 to 34.0% in 2026Q1, reflecting ongoing difficulties in maintaining pricing power amidst rising labor costs.
| Sales/Revenue | 9.95B | 9.83B | 9.62B | 7.11B | 6.32B | 5.59B | 4.72B | 4.71B | 2.46B |
| Revenue Growth % | 3.81% | 2.15% | 35.2% | 12.49% | 13.2% | 18.38% | 0.25% | 91.13% | - |
| Cost of Goods Sold | 6.69B | 6.39B | 6.17B | 4.54B | 4.07B | 3.62B | 3.06B | 2.96B | 1.53B |
| COGS % of Revenue | - | 65.04% | 64.14% | 63.77% | 64.31% | 64.75% | 64.79% | 62.86% | 61.94% |
| Gross Profit | 3.27B | 3.44B | 3.45B | 2.58B | 2.26B | 1.97B | 1.66B | 1.75B | 937.55M |
| Gross Margin % | 32.81% | 34.96% | 35.86% | 36.23% | 35.69% | 35.25% | 35.21% | 37.14% | 38.06% |
| Gross Profit Growth % | - | -0.4% | 33.78% | 14.21% | 14.61% | 18.54% | -4.97% | 86.49% | - |
| Operating Expenses | 2.71B | 2.83B | 2.85B | 1.92B | 1.62B | 1.4B | 1.35B | 1.45B | 792.79M |
| OpEx % of Revenue | - | 28.76% | 29.66% | 26.94% | 25.57% | 25.01% | 28.66% | 30.89% | 32.19% |
| Selling, General & Admin | 2.71B | 2.83B | 2.85B | 1.92B | 1.62B | 1.4B | 1.35B | 1.45B | 792.79M |
| SG&A % of Revenue | - | 28.76% | 29.66% | 26.94% | 25.57% | 25.01% | 28.66% | 30.89% | 32.19% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 559.24M | 609.54M | 596.39M | 661.33M | 640.19M | 572.4M | 308.76M | 294.33M | 144.76M |
| Operating Margin % | 5.62% | 6.2% | 6.2% | 9.3% | 10.12% | 10.25% | 6.54% | 6.25% | 5.88% |
| Operating Income Growth % | - | 2.21% | -9.82% | 3.3% | 11.84% | 85.39% | 4.9% | 103.32% | - |
| EBITDA | 1.22B | 1.26B | 1.3B | 1.05B | 949.73M | 849.57M | 585.33M | 600.11M | 299.36M |
| EBITDA Margin % | 12.21% | 12.82% | 13.54% | 14.75% | 15.02% | 15.21% | 12.4% | 12.75% | 12.15% |
| EBITDA Growth % | -6.44% | -3.27% | 24.07% | 10.52% | 11.79% | 45.14% | -2.46% | 100.47% | - |
| D&A (Non-Cash Add-back) | 656.38M | 650.11M | 705.85M | 388.3M | 309.54M | 277.18M | 276.57M | 305.78M | 154.6M |
| EBIT | -961.61M | -891.87M | 621.1M | 609.23M | 675.08M | 578.74M | 316.21M | 296.61M | 149.15M |
| Net Interest Income | -292.67M | -290.35M | -321.83M | -201M | -70.08M | -23.05M | -48.31M | -92.2M | -38.24M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 292.67M | 290.35M | 321.83M | 201M | 70.08M | 23.05M | 48.31M | 92.2M | 38.24M |
| Other Income/Expense | -1.81B | -1.79B | -297.11M | -253.1M | -35.19M | -16.7M | -40.87M | -89.92M | -33.85M |
| Pretax Income | -1.25B | -1.18B | 299.27M | 408.23M | 605M | 555.7M | 267.89M | 204.42M | 110.91M |
| Pretax Margin % | -12.6% | -12.03% | 3.11% | 5.74% | 9.57% | 9.95% | 5.68% | 4.34% | 4.5% |
| Income Tax | 73.31M | 96.7M | 48.06M | 94.39M | 169.36M | 150.12M | 103.08M | 87.25M | 62.64M |
| Effective Tax Rate % | -5.84% | -8.18% | 16.06% | 23.12% | 27.99% | 27.01% | 38.48% | 42.68% | 56.48% |
| Net Income | -1.33B | -1.28B | 251.22M | 313.84M | 435.05M | 405.58M | 164.81M | 117.16M | 48.27M |
| Net Margin % | -13.34% | -13.02% | 2.61% | 4.41% | 6.88% | 7.26% | 3.49% | 2.49% | 1.96% |
| Net Income Growth % | -592.85% | -609.09% | -19.95% | -27.86% | 7.27% | 146.09% | 40.67% | 142.72% | - |
| Net Income (Continuing) | -1.33B | -1.28B | 251.22M | 313.84M | 435.64M | 405.58M | 164.81M | 117.16M | 48.27M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -21.66 | -20.36 | 3.71 | 5.70 | 8.28 | 7.70 | 3.19 | 2.27 | 0.93 |
| EPS Growth % | -640.1% | -648.79% | -34.91% | -31.16% | 7.53% | 141.38% | 40.53% | 144.09% | - |
| EPS (Basic) | - | -20.36 | 3.72 | 5.72 | 8.34 | 7.78 | 3.19 | 2.27 | 0.94 |
| Diluted Shares Outstanding | 61.3M | 63.01M | 65.07M | 54.01M | 51.74M | 51.91M | 51.6M | 51.6M | 51.7M |
| Basic Shares Outstanding | 61.28M | 63.01M | 64.98M | 53.8M | 51.35M | 51.35M | 51.6M | 51.6M | 51.6M |
| Dividend Payout Ratio | - | - | 33.36% | 20.23% | 12.28% | 3.23% | - | - | - |
Integration and margin compression
According to the latest quarterly filings, Concentrix's year-over-year revenue growth has decelerated significantly to 5.4% in 2026Q1, a sharp contrast to the double-digit expansion observed in early 2024, suggesting that the company is struggling to maintain momentum following the integration of large-scale acquisitions like Webhelp.
The transition from high-growth inorganic expansion to a low single-digit organic growth profile indicates that the company may be reaching market saturation in its core technology verticals. Investors should monitor whether this deceleration reflects a broader industry shift toward AI-driven automation, which could permanently lower the volume of human-led interactions.
As reported in financial statements, the company's gross margin has contracted from a peak of 36.9% in 2023Q4 to 34.0% in 2026Q1, reflecting the ongoing difficulty in maintaining pricing power while managing the rising labor costs inherent in the global business process outsourcing delivery model.
The consistent erosion of gross margins suggests that Concentrix is finding it increasingly difficult to pass through wage inflation to its clients. This trend warrants further investigation into whether the company's service mix is shifting toward lower-margin, high-volume tasks that are more susceptible to competitive price-based bidding.
Based on the company's reported figures, the net income volatility—highlighted by a massive $1.5 billion loss in 2025Q4—appears to be driven by non-recurring integration charges and amortization, which complicates the assessment of the firm's true underlying profitability and long-term earnings power for institutional investors.
The wide variance between operating income and net income suggests that significant non-cash items are distorting the bottom line, making it difficult to gauge the success of the Webhelp integration. Analysts should focus on adjusted EBITDA to strip away these accounting artifacts and determine if the core business is actually generating sustainable cash flow.
Data from recent income statements suggests that the company's operating leverage is currently impaired, as SG&A expenses remain elevated relative to gross profit, potentially indicating that the expected synergies from the Webhelp merger have yet to materialize in a meaningful way for the bottom line.
Short-sellers may focus on the persistent gap between revenue growth and operating income expansion as evidence that the company's cost structure is becoming bloated. If management cannot demonstrate a clear path to margin expansion through operational efficiency, the market may continue to discount the stock relative to its peers.
Quick answers to the most common questions about buying CNXC stock.
For fiscal year 2025, Concentrix Corporation (CNXC) reported total revenue of $9.83B. This represents a 298.9% increase compared to $2.46B in 2018.
Concentrix Corporation (CNXC) reported a net loss of $1.28B for the fiscal year ending 2025.
Concentrix Corporation (CNXC) reported an operating income of $609.5M, resulting in an operating profit margin of 6.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Concentrix Corporation (CNXC) generated $3.44B in gross profit for the year, representing a gross profit margin of 35.0%. This demonstrates the company's core pricing power and production efficiency.