What is the revenue and EPS growth rate for Conduent year over year?

What is the market's earnings forecast for Conduent next quarter?

What were the key takeaways from Conduent's earnings call?

What does Conduent do and what are its main business segments?

What is Conduent's latest dividend and current dividend yield?

What guidance did Conduent's management provide for the next earnings period?

What were the key takeaways from Conduent’s earnings call?

What factors drove the changes in Conduent's revenue and profit?

- **Revenue Resilience**: Adjusted EBITDA margin 5.2% (up 110bps YoY) despite 1.8% revenue decline, driven by AI cost savings and Transportation growth.
- **AI Breakthroughs**: Gen AI deployed in fraud detection, language translation, and claims adjudication, with first Commercial software license signed.
- **Government Shutdown Impact**: Delayed milestones and $168M contract assets, but no revenue stream disruption. Pipeline remains strong at $3.4B ACV.
- **Commercial Expansion**: Health care vertical growth and 2+ product penetration <30% of clients. New business dev team to accelerate pipeline.

**【CEO Summary Section】**
- **Revenue Performance**: Adjusted revenue of $767 million, down 1.8% YoY, with Transportation segment growing 14.9% YoY. EBITDA margin improved to 5.2% (up 110bps YoY) due to cost efficiency and AI-driven fraud reduction.
- **AI and Innovation**: Launched AI experience center in NJ; deployed Gen AI in fraud detection, language translation, and claims adjudication. Signed first Commercial software license agreement in health care.
- **Government Shutdown Impact**: Delayed milestone recognitions and contract approvals, but no revenue stream impact. Pipeline remains strong at $3.4B ACV (up 9% YoY).
- **Portfolio Rationalization**: Refinanced $357M revolving credit facility, repaid Term Loan A, and targeting $1B capital deployment by 2026.

**【CFO Financial Commentary】**
- **Segment Results**: 
  - **Commercial**: Revenue down 4.7% YoY (excluding largest client, top 25 accounts grew). EBITDA margin 10.1% (up 100bps YoY).
  - **Government**: Revenue down 6.7% YoY due to implementation delays. EBITDA margin 25.6% (up 210bps YoY) driven by AI cost savings.
  - **Transportation**: Revenue up 14.9% YoY, EBITDA margin 2.5% (up 250bps YoY).
- **Cash Flow**: Negative free cash flow ($54M) due to delayed billings and milestone payments. Contract assets of $168M expected to convert by Q1 2026.
- **Balance Sheet**: Net leverage 3.2x. Repurchased 4.7M shares at $2.70 avg price.

**【Q&A Highlights】**
- **AI Impact**: Fraud reduction in Government (e.g., Direct Express program) and Commercial (agent assist, language smoothing). EBITDA benefits materializing in P&L.
- **Client Mix**: Health care dominates Commercial (30-40%), with Medicaid processing key in Government. Penetration of 2+ products per client <30%.
- **Commercial Growth**: New business development team to expand pipeline. Excluding largest client, top 25 Commercial accounts grew YoY.
- **Government Shutdown**: No structural changes to contracts. Expect pipeline deals to close post-shutdown resolution.

Conduent Incorporated (CNDT) Q3 2025 Earnings Call Transcript

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CNDT

CNDT fundamentals

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