CNDT · Conduent Incorporated

Conduent's Q1 2026 results reflect early progress in its transformation strategy. Revenue declined 3.7% to $723M, driven by lower volumes and lost business, partially offset by growth in Government (up ~$10M) and Transportation (up ~$3M). Adjusted EBITDA improved 32.4% to $49M, with margin expanding 190 bps to 6.8%, benefiting from favorable revenue mix and cost efficiencies. GAAP pre-tax loss narrowed to $(27)M from $(56)M, aided by the absence of prior-year discrete costs. Operating cash flow improved $50M to $(8)M, and adjusted free cash flow improved to $(15)M from $(74)M. New Business ACV signings reached $114M, and the qualified pipeline grew to $3.5B. Management highlighted cost reduction initiatives, portfolio optimization, and leadership changes. FY 2026 guidance calls for revenue of $2.8B-$2.9B and adjusted EBITDA of $160M-$190M, with FY 2027 adjusted EBITDA of $190M-$220M and flat-to-positive revenue. The company ended the quarter with $228M cash and $190M undrawn credit facility.