Conduent (NASDAQ:CNDT) Announces Earnings Results, Misses Expectations By $0.01 EPS

Conduent (NASDAQ:CNDT) released its quarterly earnings data on Monday. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.17) by ($0.01), FiscalAI reports. Conduent had a negative net margin of 5.04% and a negative return on equity of 7.08%. The firm had revenue of $531.00 million for the quarter, compared to analyst estimates of $702.00 million.

Here are the key takeaways from Conduent’s conference call:

• Portfolio divestitures of the transit and tolling businesses are expected to generate approximately $234 million in gross proceeds plus a 7% stake in Quarterhill, with most proceeds earmarked for debt reduction. The transactions should also cut off-balance-sheet obligations by about 80% and reduce working-capital and capital-expenditure requirements.
• Continuing-operations revenue fell 11.9% year over year to $531 million, while adjusted EBITDA declined to $16 million and the margin dropped to 3%. Commercial revenue was pressured by contract losses and volume declines, including the expected third-quarter expiration of the company’s largest commercial client contract.
• Management remains on track for the approximately $100 million annualized cost-savings program, with roughly 60%–70% expected from headcount actions and 30%–40% from technology and operating-model changes. The company said more than half of the savings have been identified and that commercial margins are expected to improve rapidly.
• Qualified new-business pipeline reached approximately $3 billion, up 11% year over year, while first-half new-business ACV was $188 million and included higher recurring-revenue signings. Management also highlighted expanding healthcare and government wins and expects a stronger second half of 2026.
• Conduent reaffirmed its longer-term ambition of achieving adjusted EBITDA margins above 10% and said leverage could decline toward approximately 1x within 18–24 months after divestiture proceeds and transformation benefits are realized. For 2026 continuing operations, guidance is now $2.15 billion–$2.25 billion of revenue and $140 million–$170 million of adjusted EBITDA.

Conduent Price Performance

NASDAQ:CNDT opened at $1.56 on Tuesday. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.59 and a quick ratio of 1.59. The stock has a market cap of $241.96 million, a P/E ratio of -1.53 and a beta of 1.44. The company has a fifty day moving average price of $1.51 and a 200 day moving average price of $1.51. Conduent has a one year low of $1.15 and a one year high of $2.98.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on CNDT shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Conduent in a report on Friday, July 17th. Zacks Research raised shares of Conduent from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 13th. Finally, Noble Financial upgraded shares of Conduent to a “strong-buy” rating in a research note on Tuesday, May 12th. Three equities research analysts have rated the stock with a Strong Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Conduent currently has an average rating of “Buy”.

Institutional Investors Weigh In On Conduent

Institutional investors have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. raised its holdings in Conduent by 35.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 7,116,277 shares of the company’s stock valued at $13,663,000 after acquiring an additional 1,854,266 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Conduent by 136.5% during the 2nd quarter. AQR Capital Management LLC now owns 1,750,748 shares of the company’s stock worth $4,622,000 after purchasing an additional 1,010,373 shares in the last quarter. Armistice Capital LLC bought a new stake in shares of Conduent during the second quarter valued at approximately $2,207,000. Russell Investments Group Ltd. increased its position in shares of Conduent by 179.2% during the third quarter. Russell Investments Group Ltd. now owns 994,644 shares of the company’s stock valued at $2,785,000 after purchasing an additional 638,338 shares during the period. Finally, Moore Capital Management LP raised its stake in shares of Conduent by 308.0% in the fourth quarter. Moore Capital Management LP now owns 502,627 shares of the company’s stock valued at $965,000 after purchasing an additional 379,438 shares in the last quarter. 77.28% of the stock is owned by institutional investors and hedge funds.

Conduent Company Profile

Conduent Incorporated is a global provider of diversified business process services with a focus on delivering digital platforms and automation solutions. The company serves clients across a variety of industries including healthcare, transportation, public sector, financial services and human resources. By combining technology-enabled services with data analytics and artificial intelligence, Conduent helps organizations streamline operations, enhance customer experiences and improve overall efficiency.

Key offerings from Conduent encompass customer engagement and transaction processing, digital payment solutions, eligibility and enrollment services for health and welfare programs, and workforce management tools.