Conduent Inc. (CNDT) Shares Plunge 22.52% Intraday on Earnings Miss, Revenue Shortfall

The share price fell to its lowest level since May 2020 today, with an intraday decline of 22.52%.

Conduent Inc. (CNDT) reported a quarterly loss of $0.09 per share, missing estimates and marking a 28.57% earnings surprise. Revenue dropped to $767 million, a 5% decline year-over-year and below the $794.33 million analyst forecast. The earnings miss and revenue shortfall exacerbated a 45.1% year-to-date decline in the stock, underscoring persistent operational challenges. Management highlighted progress in AI-driven efficiency improvements and transportation sector projects, achieving 87% of a $1 billion capital allocation target. However, these efforts have yet to offset broader revenue declines and GAAP losses, which widened to $38 million in the quarter compared to a $159 million profit in 2024.

Financial metrics remain mixed. Adjusted EBITDA rose 25% to $40 million, but negative operating cash flow (-$39 million) and free cash flow (-$54 million) highlight liquidity strains. The company retained $264 million in cash reserves and $198 million in unused credit facilities, signaling capital structure confidence. Analysts remain cautious, assigning a “Hold” Zacks Rank and a $7.00 median price target (68.3% above the closing price). While strategic refocusing on healthcare and transportation has shown resilience—with $111 million in new Annual Contract Value—the stock’s recovery hinges on stabilizing revenue and cash flow. Management’s ability to align operational improvements with consistent execution will determine whether investor skepticism shifts to optimism in the coming quarters.