Alight Q4 revenue, EPS miss estimates, to stop dividend

Alight

19/02/2026 12:37

Overview

Health solutions provider's Q4 revenue slightly missed analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company plans capital allocation activities to drive long-term shareholder value

Outlook

Company to replace cash dividend with capital allocation activities like deleveraging and share repurchases

Result Drivers

REVENUE DECLINE - Q4 revenue decreased 4% due to lower project revenue and net commercial activity

EXPENSE REDUCTION - Selling, general, and administrative expenses decreased due to lower professional fees and share-based compensation

GOODWILL IMPAIRMENT - Recognized a $803 million non-cash goodwill impairment charge, impacting net income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$653 mln
$655.20 mln (8 Analysts)
Q4 Adjusted EPS
Miss
$0.18
$0.23 (8 Analysts)
Q4 Net Income
-$933 mln
Q4 Adjusted EBITDA
Miss
$178 mln
$219.52 mln (7 Analysts)
Q4 Gross Profit
$240 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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 $3.75, about 186.3% above its February 18 closing price of $1.31

The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw6xQ91Qa

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.)