Update shared on27 Sep 2025
Fair value Decreased 4.19%Concentrix's consensus price target was modestly reduced to $64.83 as analysts factor in compressed valuation multiples from AI-related investor uncertainty and secular headwinds—rather than fundamental weakness—while maintaining confidence in growth reacceleration and strong business fundamentals.
Analyst Commentary
- Compressed valuation multiples attributed to investor uncertainty over the impact of artificial intelligence on labor-intensive business models and broader secular headwinds, not due to fundamental company weakness.
- Expectation of growth reacceleration as the effects of secular headwinds normalize.
- Confidence in the company's ability to monetize artificial intelligence solutions as ramp-up progresses.
- Bullish analysts raising price targets following updates to forecasts and Q3 earnings previews.
- Continued positive ratings supported by underlying business fundamentals and resilient performance.
What's in the News
- Concentrix's Board declared a quarterly dividend of $0.36 per share payable to shareholders of record at the close of business on October 24, 2025.
- The company repurchased 800,000 shares for $42.2 million between June 1 and August 31, completing the buyback of 6,138,578 shares for $458.87 million under the current program.
- Fiscal 2025 guidance projects Q4 reported revenue of $2.525–$2.550 billion and full-year revenue of $9.798–$9.823 billion, with operating income expected at $163–$173 million for Q4 and $627–$637 million for the year.
- Launched the Agentic Operating Framework to address AI pilot failures, offering end-to-end AI services and reporting measurable client gains, such as $150 million in new revenue and $45.8 million in cost savings for a leading North American airline.
- Released a new version of iX Hero, adding Harmony for natural speech and Clarity for noise suppression, resulting in substantial improvements in Communication and Net Promoter Scores, and scaling deployment globally.
Valuation Changes
Summary of Valuation Changes for Concentrix
- The Consensus Analyst Price Target has fallen slightly from $67.67 to $64.83.
- The Net Profit Margin for Concentrix has significantly fallen from 4.82% to 3.40%.
- The Future P/E for Concentrix has significantly risen from 10.13x to 12.90x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.