Concentrix Shares Tumble as Clients Shift to Offshoring

The company’s revised revenue forecast of $9.93 billion to $10.03 billion falls short of the $10.11 billion consensus previously held by FactSet analysts. Executives pointed to a 300 basis-point headwind caused by the rapid shift toward offshore operations, a significant increase from their initial 200 basis-point estimate. This trend, coupled with clients reallocating spending to manage internal financial strain, has created a 2% headwind for the third quarter alone.

CEO Chris Caldwell noted that while client financial pressure is driving demand for automation, it has simultaneously forced companies to prioritize spending and move work offshore more urgently. Consequently, Concentrix expects third-quarter adjusted earnings between $2.65 and $2.77 per share, trailing the $3.09 per share expected by analysts. The company reported second-quarter earnings of $2.63 per share, narrowly missing the $2.64 estimate, despite revenue rising to $2.46 billion.