Business process solutions firm Conduent Q2 revenue slips

Conduent Incorporated

10/08/2026 13:12

Overview
US business process solutions provider's Q2 revenue fell 12% yr/yr to $531 mln
Adjusted EBITDA margin declined to 3.0% from 3.8% on lower Government segment profitability
Company to divest Transit and Tolling businesses for $234 mln to focus on core operations

Outlook
Conduent sees FY 2026 revenue between $2.15 bln and $2.25 bln
Company expects FY 2026 adj EBITDA from continuing operations of $140 mln to $170 mln
Conduent says it remains focused on cost savings and portfolio simplification to improve performance

Result Drivers
GOVERNMENT SEGMENT PROFITABILITY - Co said lower profitability in its Government segment weighed on adjusted EBITDA margin
RESTRUCTURING COSTS - Higher restructuring-related costs tied to transformation plan contributed to larger pre-tax loss
WORKING CAPITAL IMPROVEMENT - Operating cash flow rose year-over-year, mainly due to favorable working capital results including realization of long-term projects

Company press release: ID:nGNX3N0KK1

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$531 mln
 
Q2 Loss Per Share
 
$0.76
 
Q2 Net Loss
 
$116 mln
 
Q2 Adjusted EBITDA Margin
 
3.00%
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Conduent Incorporated is $5.00, about 194.1% above its August 7 closing price of $1.70

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(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.)