What Happened?
Shares of customer experience solutions provider Concentrix (NASDAQ: CNXC) fell 9.1% in the afternoon session after the company reported mixed third-quarter results and cut its full-year earnings forecast.
For its third quarter of 2025, revenue of $2.48 billion slightly beat analyst expectations, but adjusted earnings per share (EPS) of $2.78 missed the consensus estimate of $2.87. The main concern for investors, however, was the company's outlook. Management lowered its full-year adjusted EPS guidance to a midpoint of $11.17, a 4.1% decrease and below Wall Street's prior estimates. The weaker earnings and reduced forecast signaled potential challenges ahead, leading to a significant drop in the stock price.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Concentrix? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Concentrix’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 38% on the news that the company reported impressive first quarter 2025 results which beat analysts' EPS and EBITDA expectations. Adjusting for currency swings, revenue managed to inch up a bit, with momentum driven by demand for the company's AI offerings, and this could partly be responsible for the improved market optimism.
Adding to the positive aspect, it slightly lifted its revenue guidance for the full year, given the outperformance recorded during the quarter. Overall, this quarter had some key positives.
Concentrix is up 13.2% since the beginning of the year, but at $49.30 per share, it is still trading 24.2% below its 52-week high of $65.04 from March 2025.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
