Alight Q1 revenue falls 2.6% but beats estimates

Alight

05/05/2026 21:18

Overview

US benefits administration provider's Q1 revenue fell 2.6% yr/yr but beat analyst expectations

Adjusted diluted EPS for Q1 dropped to $0.06 from $0.10 a year earlier

Revenue decline driven by lower net commercial activity, partly offset by higher project revenue

Outlook

Alight expects Q2 2026 revenue between $490 mln and $505 mln

Company sees Q2 2026 adjusted EBITDA of $80 mln to $90 mln

Alight projects Q2 2026 free cash flow of $35 mln to $45 mln

Result Drivers

LOWER COMMERCIAL ACTIVITY - Co said revenue decline was primarily due to lower net commercial activity, partly offset by higher project revenue

RENEWAL ACTIVITY - Co cited favorable renewal activity and addition of new annual recurring revenue as supporting results

AI INITIATIVES - Co launched several AI-centered initiatives to enhance solutions and customer outcomes

Company press release: ID:nBw7jKlC6a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$534 mln
$502.74 mln (5 Analysts)
Q1 Gross Profit
$156 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Alight Inc is $3.00, about 270.4% above its May 4 closing price of $0.81

The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)