Conduent (CNDT) Is Down 24.6% After Cut to 2025 Revenue Outlook and Third-Quarter Losses

• Conduent recently reported third-quarter 2025 results, noting a year-over-year revenue decline to US$767 million and shifting from net income last year to a net loss of US$46 million, alongside a lowered full-year revenue forecast.
• Despite this financial setback, Conduent highlighted operational improvements, new AI-powered product offerings, and board changes as part of its ongoing business transformation efforts.
• We'll examine how the reduced 2025 revenue guidance and profitability challenges impact Conduent's investment narrative and future outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Conduent Investment Narrative Recap

To be a Conduent shareholder today, you’d need to believe that ongoing investments in automation, AI-powered business solutions, and operational streamlining will eventually translate to more consistent growth, profitability, and margin expansion. While the recent Q3 earnings miss and lowered 2025 revenue guidance intensify near-term uncertainty, particularly for those focused on revenue rebound as the main catalyst, the most important catalyst and biggest risk (securing large, recurring contracts versus ongoing client attrition and contract cycles) remain unchanged by this update.

Among recent developments, Conduent’s launch of a generative AI-powered reportable event detection solution stands out, highlighting the company’s push for higher-value, compliance-oriented services in healthcare, a sector with significant long-term potential. This launch supports the same margin improvement and product pipeline catalysts investors are watching, though it does not immediately offset broad-based revenue pressures or near-term earnings volatility.

By contrast, it's important for investors to be aware that ongoing reliance on large episodic contracts and "lumpy" revenue cycles may …

Read the full narrative on Conduent (it's free!)

Conduent's outlook anticipates $3.4 billion in revenue and $241.5 million in earnings by 2028. This is based on a 2.9% annual revenue growth and a $231.5 million increase in earnings from the current $10.0 million.

Uncover how Conduent's forecasts yield a $7.00 fair value, a 293% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provide four fair value estimates for Conduent ranging from US$2.20 to US$8.42. With these diverse viewpoints in mind, consider the persistent revenue volatility highlighted in the latest results and how it shapes expectations for future growth.

Explore 4 other fair value estimates on Conduent - why the stock might be worth just $2.20!

Build Your Own Conduent Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Conduent research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Conduent research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Conduent's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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