ALIT Plunges 11.48% to Record Low Amid $1.3B Impairments, Q3 Earnings Disappointment

Alight Inc. (ALIT) fell to a record low on Nov. 5, with an intraday drop of 11.48% as the stock continued a three-day losing streak, declining 12.85% in three sessions. The selloff intensified concerns about the company’s financial health amid deteriorating fundamentals and strategic uncertainties.

Q3 2025 results revealed a 4% year-on-year revenue decline to $533 million, missing estimates by 0.7%, while the company slashed full-year revenue guidance to $2.27 billion and adjusted EPS forecasts by 8.2%. A $1.3 billion goodwill impairment charge, coupled with a $983 million asset impairment, underscored asset value erosion. Governance reforms, including a planned board declassification starting in 2026, aim to boost accountability but are unlikely to offset near-term challenges. Operational headwinds, such as a 14% drop in project revenue and a 30% reduction in renewal dollars for 2026, further weigh on confidence.

Despite AI-driven initiatives, including IBM’s watsonx integration and GenAI-enabled tools, their impact on profitability remains unproven. While these innovations have improved client satisfaction and operational efficiency, they haven’t reversed declining revenue trends. Alight’s balance sheet remains strained, with a net leverage ratio of three times and a current ratio of 1.2, raising liquidity concerns. Analysts remain split, with UBS cutting its price target to $6.50 in August, yet maintaining a “Buy” rating. The stock, trading near its 52-week low of $2.63, reflects skepticism over its ability to restore growth amid macroeconomic pressures and client caution.