Conduent (NASDAQ:CNDT) Releases Earnings Results, Misses Estimates By $0.03 EPS

Conduent (NASDAQ:CNDT) released its earnings results on Thursday. The company reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.03), FiscalAI reports. Conduent had a negative net margin of 4.85% and a negative return on equity of 8.74%. The company had revenue of $770.00 million during the quarter, compared to the consensus estimate of $790.50 million. During the same period last year, the firm posted ($0.15) EPS. The company’s revenue was down 3.7% on a year-over-year basis.

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

• New CEO Harsha Agadi (in role under 30 days) laid out a clear turnaround framework — faster decision‑making, strict capital allocation, SG&A/technology cuts, portfolio rationalization, pipeline conversion, and organizational simplification — and committed to an Analyst Day and a strong focus on sustainable free cash flow.
• Full‑year adjusted EBITDA improved to $164 million (5.4% margin, +150 bps YoY) and Q4 adjusted EBITDA margin rose to 6.5% (+250 bps), indicating operating leverage despite revenue pressures.
• Sales momentum showed a $3.2 billion qualified ACV pipeline and Q4 new business ACV of $152 million (+11% YoY), with particularly strong government pipeline growth (+29% YoY) and improvements in new‑capability sales.
• Adjusted revenue declined to $3.04 billion (-4.2% YoY), the commercial segment fell ~5.9%, and adjusted free cash flow was a -$130 million for FY2025, with some cash timing issues tied to delayed government billings.
• Management is accelerating portfolio rationalization (fix/sell/grow) and cost actions with proceeds slated to reduce debt, which could improve leverage and margins but depends on execution and transaction timing.

Conduent Stock Down 4.1%

Conduent stock traded down $0.06 on Thursday, hitting $1.29. 1,748,425 shares of the stock traded hands, compared to its average volume of 1,421,041. Conduent has a 1 year low of $1.18 and a 1 year high of $4.26. The firm has a market cap of $196.46 million, a P/E ratio of -1.31, a price-to-earnings-growth ratio of 35.75 and a beta of 1.31. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.97. The business’s fifty day simple moving average is $1.83 and its 200 day simple moving average is $2.26.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on CNDT shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Conduent in a report on Wednesday, January 21st. Wall Street Zen cut Conduent from a “hold” rating to a “sell” rating in a report on Saturday, November 15th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy”.

Institutional Investors Weigh In On Conduent

Several hedge funds have recently bought and sold shares of CNDT. AQR Capital Management LLC raised its holdings in Conduent by 136.5% in the 2nd quarter. AQR Capital Management LLC now owns 1,750,748 shares of the company’s stock worth $4,622,000 after acquiring an additional 1,010,373 shares during the last quarter. Armistice Capital LLC purchased a new position in Conduent in the 2nd quarter worth about $2,207,000. Russell Investments Group Ltd. raised its position in Conduent by 179.2% in the 3rd quarter. Russell Investments Group Ltd. now owns 994,644 shares of the company’s stock worth $2,785,000 after buying an additional 638,338 shares during the last quarter. Marshall Wace LLP lifted its stake in Conduent by 362.8% during the 2nd quarter. Marshall Wace LLP now owns 345,483 shares of the company’s stock valued at $912,000 after acquiring an additional 270,840 shares during the period. Finally, Ancora Advisors LLC boosted its holdings in shares of Conduent by 21.8% during the 3rd quarter. Ancora Advisors LLC now owns 1,269,440 shares of the company’s stock valued at $3,554,000 after acquiring an additional 227,041 shares during the last quarter. Institutional investors own 77.28% of the company’s stock.

About Conduent

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.