Here's Why Concentrix Stock Is Sinking Today

Source The Motley Fool

Key Points

  • Concentrix provides customer experience solutions for a variety of businesses.

  • The company failed to meet analysts' third-quarter 2025 earnings estimates.

  • Management reduced fiscal 2025 EPS guidance.

  • 10 stocks we like better than Concentrix ›

While the S&P 500 (SNPINDEX: ^GSPC) and Dow Jones Industrial Average (DJINDICES: ^DJI) are both moving higher this morning, shares of customer experience solutions specialist Concentrix (NASDAQ: CNXC) are moving in the other direction. After the company reported third-quarter 2025 financial results yesterday after the market closed, investors are selling off sharply today in a show of their disappointment.

As of 11:04 a.m. ET, shares are down 9.3%, recovering from their earlier decline of 21.8%.

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Investor works at desk with financial chart on laptop screen.

Image source: Getty Images.

It's not just missing analysts' estimates that's making investors upset

Coming up short of analysts' expectations that it would report third-quarter 2025 earnings per share (EPS) of $2.87, Concentrix posted EPS of $2.78. Investors' frustration with respect to profits was compounded by management's forecast for fiscal 2025. While Concentrix originally (back in January) expected adjusted EPS of $11.18 to $11.77, the company revealed in its Q3 2025 financial results presentation that it now projects 2025 adjusted EPS of $11.11 to $11.23.

For investors, the company's failure to meet analysts' estimates is clearly weighing more heavily than the company's success at the top of the income statement. Whereas analysts expected the company to report sales of $2.46 billion, Concentrix posted revenue of $2.48 billion for Q3 2025.

Is now a good buying opportunity for Concentrix due to today's sell-off?

While Concentrix didn't provide thrilling Q3 2025 financial results -- or fiscal 2025 guidance -- the company still reported a respectable quarter, with revenue climbing 4% year over year. For investors interested in collecting passive income while gaining exposure to the tech sector, Concentrix may be worth digging further into. The stock provides a 2.6% forward yield, and management has clearly taken a conservative approach to rewarding shareholders. Over the past five years, Concentrix has averaged a payout ratio of only 15%.

Should you invest $1,000 in Concentrix right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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