10-Q · May 11, 2026
Conduent Incorporated reported a decline in revenue and net income in Q1 2026, with revenue at $723 million, down from $751 million in the previous year. The company continued to face challenges in its commercial…
Earnings analysis · 10-Q
CNDT earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Conduent's continuing-operations revenue fell 12% year over year to $531 million, with both Commercial and Government shrinking and operating margin deteriorating to approximately negative 8.3%. GAAP diluted EPS…
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Conduent's continuing-operations revenue fell 12% year over year to $531 million, with both Commercial and Government shrinking and operating margin deteriorating to approximately negative 8.3%. GAAP diluted EPS declined to $(0.76), driven in part by a $31 million Tolling impairment and a $47 million discontinued-operations loss. Operating cash flow improved materially to $(1) million for the first half, while debt increased and July borrowings of $183 million highlight liquidity and leverage concerns. Better signings and a $3.0 billion pipeline provide some support, but near-term execution, restructuring costs of $30 million to $50 million and divestiture risks remain significant.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.76
What stood out
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Revenue Declined Sharply
Revenue was $531 million, down $72 million or 12% from $603 million a year earlier and down approximately 27% from $723 million in the preceding quarter. Management attributed the decline primarily to contract losses, including the largest Commercial customer, and lower volumes.
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Margins Remained Under Pressure
Gross margin was approximately 18.1% versus 18.2% a year earlier and 18.8% in the preceding quarter. Operating margin was approximately negative 8.3%, versus negative 2.6% a year earlier and negative 1.7% in the prior quarter.
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GAAP Loss Widened
Diluted GAAP EPS was $(0.76), versus $(0.26) a year earlier. The result included a $(0.30) loss per share from discontinued operations; continuing-operations diluted EPS was $(0.46) versus $(0.27).
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Operating Cash Flow Improved
Six-month operating cash flow improved to $(1) million from $(73) million a year earlier, a $72 million improvement, primarily from favorable working capital. Capital expenditures were $29 million, including $18 million for equipment and $11 million for internal-use software.
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Transformation Program Launched
Management launched a company-wide restructuring program with estimated costs of $30 million to $50 million and expected annual savings of at least $100 million. Restructuring expense was $20 million in the quarter versus $8 million a year earlier.
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Signings and Pipeline Increased
Total signings increased to $811 million from $682 million, up 19%, driven by renewal TCV of $617 million versus $466 million. The new-business pipeline also increased to $3.0 billion from $2.7 billion.
What to watch
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Divestiture Execution and Losses
The planned exit from Transportation produced a $47 million net loss from discontinued operations in the quarter, including a $31 million impairment loss on the Tolling business. The related transactions are expected to close before the end of 2026 and involve $386 million of assets and $206 million of liabilities held for sale.
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Higher Leverage and Liquidity Risk
Debt increased to $722 million of principal outstanding from $691 million at December 31, 2025, while cash and cash equivalents declined to $228 million from $233 million. The company subsequently borrowed $183 million under its revolving credit facility in July 2026.
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Quarterhill Equity Consideration Risk
The company will receive a 7% equity interest in Quarterhill as part of the Tolling sale, with an estimated market value of $14 million at June 30, 2026. The filing warns that volatility, limited liquidity, Canadian-dollar foreign-exchange exposure and lack of control could reduce the value of this consideration.
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Cyber Litigation Exposure
The January 2025 Cyber Event has resulted in consolidated litigation and governmental investigations; the company had made $25 million of related cash disbursements through June 30, 2026, but cannot estimate any additional potential loss.
Management's outlook
The 10-Q provides no explicit numeric revenue or EPS guidance. Management expects the Transit and Tolling transactions to close before the end of 2026, expects the 2026 Restructuring Program to deliver at least $100 million in annual savings, and estimates restructuring costs of $30 million to $50 million. Prior FY 2026 guidance was disclosed in the separate August 10, 2026 earnings release, not in this filing.
Earlier filings 4
10-K · February 19, 2026
Conduent positions itself as a technology-led provider of end-to-end business process solutions across Commercial, Government and Transportation markets, emphasizing AI/automation, delivery optimization and quality.…
10-Q · November 7, 2025
Conduent reported Q3 2025 revenue of $767.0M, down $40.0M year-over-year (Q3 2024 $807.0M) but up modestly vs. the prior quarter. The company recorded a net loss of $46.0M (diluted loss per share $0.30) and used cash…
10-Q · August 7, 2024
Conduent reported Q2 2024 revenue of $828.0M (down $87.0M vs Q2 2023) but delivered GAAP net income of $216M and diluted EPS of $1.07, driven primarily by gains on divestitures and transaction activity. Core segment…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.