Concentrix writes off $1.05 billion of goodwill, about 69% of its market value, and falls 9% after hours

Concentrix shares fell about 8.8% in after-hours trading on Tuesday, to $22.68 at 4:53 p.m. ET from a regular-session close of $24.88, according to Nasdaq quote data, after the customer-experience outsourcer reported fiscal third-quarter results. The stock had already slipped 2.2% during the day and now sits a little above the low end of its 52-week range of $19.12 to $49.37.

According to the earnings release filed with the SEC, revenue for the quarter ended August 31 was $2.454 billion, down 1.2% from a year earlier and down 0.5% in constant currency. Non-GAAP earnings were $2.92 a share against $2.78 a year ago. On a reported basis, the company lost $988.1 million, or $16.24 a share.

The write-down is a verdict on the share price

Almost all of the reported loss came from a single line: a $1.05 billion non-cash goodwill impairment. Concentrix says the charge resulted "primarily" from the trading range of its stock price and market capitalization. In plain terms, the market has valued the company for long enough below what it paid for past acquisitions that accounting rules forced it to mark those purchases down.

The scale is the part worth pausing on. Nasdaq put Concentrix's market value at about $1.52 billion at Tuesday's close. The write-down is equal to roughly 69% of that figure. It does not touch cash, but it is the company's own acknowledgement that a large slice of the value it once booked for deals is no longer supported.

The guidance is where the revenue story turns

Third-quarter revenue barely moved in constant currency. The fourth-quarter outlook is different. Concentrix expects reported revenue of $2.41 billion to $2.46 billion, which it says implies a constant-currency decline of 3% to 5%. That is six to ten times the pace of decline the company just reported, in a single quarter.

Chief executive Chris Caldwell framed the shift as deliberate. "While we are aggressively disrupting our own traditional business, the underlying new business is stronger and healthier," he said, adding that 50% of revenue now comes from business won and deployed in the three years since AI tools arrived. The fourth-quarter numbers suggest the older business is shrinking faster than the new one is filling the gap, at least for now.

Profit guidance held up better. The company expects non-GAAP EPS of $2.86 to $2.98 for the fourth quarter and $10.97 to $11.09 for the full year, with non-GAAP operating margin in the third quarter up 30 basis points to 12.6%.

The cash flow math the stock is ignoring, or doubting

Concentrix expects $630 million to $650 million of adjusted free cash flow for fiscal 2026. Set against a $1.52 billion market value, the midpoint equals about 42% of the company's worth in a single year. A number that large relative to price usually means one of two things: investors expect the cash to shrink sharply as the traditional work disappears, or they doubt it will be sustained. The guidance for falling revenue gives them a reason for the first reading.

The company raised its quarterly dividend to $0.37 a share from $0.36, payable November 3 to holders of record on October 23. At Tuesday's close that is an annual yield of about 5.9%. It bought back no stock in the quarter, leaving $396.6 million of authorization unused, equal to about a quarter of its market value.

Who else should read this

Concentrix runs customer-service and back-office operations for more than 2,000 large companies. Its revenue guidance is one of the clearest public readings of how quickly corporate clients are replacing human call-center work with automated systems. Management was scheduled to discuss the results on a 5 p.m. ET call.

Sources: Concentrix filings on SEC EDGAR (Q3 fiscal 2026 earnings release); Nasdaq quote and market value data (regular close and 4:53 p.m. ET after-hours). This is market information, not investment advice.