Conduent (CNDT) shares are in focus after a brutal post‑earnings slide. Coverage today highlights a roughly 24–25% drop tied to a weaker‑than‑expected Q3 and a cut to full‑year 2025 revenue guidance, deepening investor concerns about the turnaround. [1]
Key takeaways at a glance
- Q3 2025 headline numbers: Revenue $767M (‑5% YoY), adjusted EBITDA $40M with a 5.2% margin, and GAAP net loss of $46M (pre‑tax loss $38M). Conduent also reported adjusted free cash flow of ‑$54M and new signings ACV of $111M. [2]
- Guidance reset: Management now sees FY 2025 adjusted revenue of $3.05B–$3.10B and adjusted EBITDA margin of 5.0%–5.5%—a cautious outlook that underpins the sell‑off. [3]
- Why the stock is down ~24–25%: The miss on Q3 revenue and EPS, plus the softer top‑line outlook, triggered heavy selling pressure, as widely noted in today’s coverage. [4]
- Analyst angle: Despite the stumble, some coverage emphasizes consensus “buy” stances and a 12‑month price target around $7—well above the stock’s recent lows—citing balance‑sheet progress and public‑sector traction. [5]
What happened: Q3 in detail
Conduent’s third‑quarter 2025 print fell short of Street expectations and showed continued year‑over‑year revenue pressure:
- Revenue: $767M (‑5% YoY); adjusted revenue: $767M (‑1.8% YoY).
- Profitability:Adjusted EBITDA: $40M (up YoY), margin: 5.2%; GAAP net loss: $46M; pre‑tax loss: $38M.
- Cash & capital:Cash balance: $264M; undrawn credit capacity: $198M; share repurchases: ~4.7M shares during the quarter.
- Sales metrics:New business signings ACV: $111M; TTM net ARR activity: $25M.
These figures come directly from the company’s Q3 release. [6]
Why the guidance cut matters
Management’s FY 2025 outlook now points to $3.05B–$3.10B in adjusted revenue and 5.0%–5.5% adjusted EBITDA margins—signaling a slower growth trajectory and tight profitability. That reset is a key driver behind the sell‑off highlighted in today’s coverage. [7]
Strategy signals: AI push, refinancing, and government momentum
Amid the disappointing quarter, Conduent underscored several initiatives:
- AI rollouts across document processing, customer experience, and fraud prevention, including GenAI additions to government solutions.
- Transportation pipeline momentum, including a Pay‑by‑Plate tolling contract in Richmond.
- Balance‑sheet work:Refinancing completed and credit facility renewed, which the company says bolsters liquidity.
These operational notes appeared alongside the earnings release and related updates. [8]
Market reaction & today’s media coverage
- Stock move: Reporting today frames the drop at about 24–25% following Q3 and the guidance cut. [9]
- Street read: Finimize notes that, despite the miss, analysts remain optimistic, with consensus price targets materially above current levels (cited around $7). Rationale: cleaner balance sheet post‑refi and steadier public‑sector revenue. [10]
- Additional context: A separate note from late October shows S&P cut Conduent’s rating to ‘B’, reflecting leverage and cash‑flow concerns—part of the broader risk picture investors are weighing. [11]
By the numbers
- Revenue (Q3 2025): $767M
- Adjusted EBITDA / margin: $40M / 5.2%
- GAAP net loss: $46M
- Adjusted FCF: ‑$54M
- Cash / undrawn revolver: $264M / $198M
- New signings ACV: $111M
- FY25 adjusted revenue guide: $3.05B–$3.10B
- FY25 adj. EBITDA‑margin guide: 5.0%–5.5%
All from the company’s Q3 materials. [12]
What to watch next
- Execution vs. guidance: Can Conduent stabilize revenue and expand margins toward the 5%+ target range in 2025? [13]
- Public sector & transportation wins: Follow‑through on government programs and tolling opportunities is key to offsetting commercial softness. [14]
- Balance‑sheet discipline: The refinancing helps liquidity, but rating pressure (S&P ‘B’) keeps the spotlight on free cash flow and leverage. [15]
- Analyst stance and targets: Will the consensus “buy” and $7 target hold if near‑term results stay choppy? [16]
FAQ
Why is Conduent stock down today?
Coverage today ties the slide to Q3 misses and a cut in 2025 revenue guidance, which undercut near‑term growth expectations. [17]
What did Conduent report for Q3 2025?
Revenue $767M, adjusted EBITDA $40M (5.2% margin), GAAP net loss $46M, adjusted free cash flow ‑$54M, and new signings ACV $111M. [18]
What is Conduent’s 2025 outlook?
Adjusted revenue $3.05B–$3.10B with 5.0%–5.5% adjusted EBITDA margins. [19]
Are analysts still positive?
A roundup published this week points to broad “buy” ratings and a consensus price target near $7, despite the Q3 disappointment. [20]
Sources cited
- Company Q3 press release and highlights (Nov. 7, 2025). [21]
- Channelchek posting of the company’s detailed Q3 table. [22]
- Yahoo Finance: “Why Conduent (CNDT) Is Down ~24.6%…” (Nov. 10, 2025). [23]
- Finimize: “Conduent’s Earnings Fall Short But Analyst Optimism Stays High” (3 days ago). [24]
- S&P Ratings notice (Oct. 10, 2025). [25]
Editor’s note: This article is intended for informational purposes only and does not constitute investment advice.
References
1. finance.yahoo.com, 2. www.news.conduent.com, 3. www.news.conduent.com, 4. finance.yahoo.com, 5. finimize.com, 6. www.news.conduent.com, 7. www.news.conduent.com, 8. www.news.conduent.com, 9. finance.yahoo.com, 10. finimize.com, 11. www.spglobal.com, 12. www.news.conduent.com, 13. www.news.conduent.com, 14. www.news.conduent.com, 15. www.spglobal.com, 16. finimize.com, 17. finance.yahoo.com, 18. www.news.conduent.com, 19. www.news.conduent.com, 20. finimize.com, 21. www.news.conduent.com, 22. www.channelchek.com, 23. finance.yahoo.com, 24. finimize.com, 25. www.spglobal.com
