Concentrix Corporation (CNXC) delivered a classic case of "good news, bad news" Tuesday, reporting solid fourth-quarter results that beat analyst estimates but issuing forward guidance that had investors hitting the sell button.

The numbers looked decent on the surface. Concentrix posted adjusted earnings of $2.95 per share, comfortably above the Street's $2.75 estimate. Quarterly revenue came in at $2.553 billion, up 4.3% year-over-year and topping the consensus of $2.539 billion. On a constant currency basis, revenue grew 3.1% from the prior year.

Concentrix makes its money delivering technology-driven customer experience services, helping companies manage and improve how they interact with customers. Think digital customer support, technical assistance, sales and marketing services, back-office operations, and data analytics for clients across technology, financial services, and retail sectors.

The Margin Problem

Here's where things get uncomfortable. Adjusted operating income fell 6.8% to $323.2 million, with margins contracting from 14.2% to 12.7%. That's the kind of compression that signals pricing pressures in the business. Adjusted EBITDA dropped 6.0% to $378.6 million, and margins took an even bigger hit, falling from 16.5% to 14.8%.

The bright spot? Cash flow. Operating cash flow jumped to $344.2 million from $284.4 million a year ago, while adjusted free cash flow reached $287.1 million, up from $218.7 million.

Shareholder Returns Continue

The company paid a quarterly dividend of 36 cents per share on November 4, 2025, and the board approved another 36 cents per share payable February 10, 2026, to shareholders of record on January 30, 2026.

During the quarter, Concentrix repurchased 1.3 million shares for $56.4 million. The company still has $438.6 million remaining under its buyback authorization as of November 30, 2025.

The Guidance That Stung

First-quarter revenue is expected between $2.475 billion and $2.500 billion, roughly in line with the $2.493 billion consensus. But the EPS guidance of $2.57 to $2.69 fell well short of the $2.90 Street estimate. That's a meaningful miss.

For fiscal 2026, the company expects revenue of $10.035 billion to $10.180 billion, actually above the $9.808 billion consensus. Adjusted EPS should land between $11.48 and $12.07, compared to the $11.37 estimate. The company also projects generating roughly $630 million to $650 million in adjusted free cash flow for the full fiscal year.

Concentrix shares were down 1.21% at $39.99 Tuesday afternoon.