Conduent (CNDT) Loss-Making Quarter Extends On US$767 Million Revenue Challenging Margin Improvement Narratives

Conduent (CNDT) has just posted its FY 2025 third quarter numbers, with revenue of US$767 million and a net income loss of US$48 million, translating to basic EPS of a US$0.31 loss. Over recent quarters the company has seen revenue move from US$828 million and EPS of US$1.09 in Q2 2024 to US$751 million and EPS of a US$0.33 loss in Q1 2025, before landing at US$767 million and EPS of a US$0.31 loss in Q3 2025. Trailing twelve month figures now sit at US$3.1 billion of revenue and an EPS loss of US$0.99. For investors, the latest result keeps the focus firmly on profitability and margins, with the current loss profile putting earnings quality and efficiency in the spotlight.

See our full analysis for Conduent.

With the headline numbers on the table, the next step is to see how this earnings print lines up against the widely held narratives about Conduent, where some long standing views on its business model and margin potential may be confirmed while others are put to the test.

See what the community is saying about Conduent

Losses Persist On Trailing US$3.1b Revenue Base

• On a trailing twelve month view, Conduent generated about US$3.1b of revenue and reported a net loss of US$159 million, with a basic EPS loss of US$0.99.
• Analysts' consensus narrative talks about AI driven process improvements and portfolio streamlining helping margins, yet the latest trailing figures still show US$159 million of losses and quarterly net income moving from US$121 million profit in Q3 2024 to a US$48 million loss in Q3 2025, which keeps the focus on how quickly those margin efforts are flowing through:
  • The consensus view highlights EBITDA gains from cost control and automation, but EPS has swung from a US$1.09 profit in Q2 2024 to losses across all three quarters of 2025 so far.
  • That contrast between margin ambitions and the current loss making profile is what many investors will watch when judging whether the operational changes are gaining traction.

Top Line Slips From US$3.6b To US$3.1b LTM

• Trailing twelve month revenue has moved from US$3.6b in the period ending Q2 2024 to US$3.1b in the period ending Q3 2025, while trailing net income shifted from a US$22 million profit to a US$159 million loss over the same span.
• Bears argue that persistent revenue headwinds and dependence on episodic contracts make growth harder to sustain, and the data gives them some talking points:
  • Quarterly revenue has moved from US$828 million in Q2 2024 to US$767 million in Q3 2025, and the Commercial and Government segments were described as seeing year over year declines in Q2 2025.
  • With EPS also moving from a US$1.09 profit in Q2 2024 to a US$0.31 loss in Q3 2025, the cautious narrative around earnings stability and contract concentration risk is clearly anchored in recent numbers.

Skeptics point to that swing from profit to loss when questioning whether Conduent can smooth out contract driven volatility over time, and they unpack that view in more detail in the 🐻 Conduent Bear Case

DCF And P/S Highlight A Wide Valuation Gap

• At a share price of US$1.35, Conduent trades on a P/S of 0.1x against peers at 0.8x and the US Professional Services industry at 1.1x, and sits well below the quoted DCF fair value of about US$6.60.
• Supporters highlight cost controls, AI enabled efficiencies and portfolio rationalisation as reasons the current US$1.35 price and low P/S might not reflect the business fundamentals they expect, and the valuation gap is clear in the numbers:
  • The DCF fair value of roughly US$6.60 is almost 5x the current share price, while analysts have a separate price target of US$7.00 that also sits well above where the stock trades now.
  • Consensus narrative also points to a projected revenue level of US$3.4b and earnings of US$241.5 million by around 2028 as the basis for that US$7.00 target, so anyone interested in the bullish case will likely compare those assumptions with today’s trailing loss of US$159 million.

If you want to see how those growth and margin expectations line up against today’s compressed valuation, the bullish narrative breaks that out in more detail here: 🐂 Conduent Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Conduent on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a couple of minutes to test your own view against the data and turn it into a clear narrative: Do it your way

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Conduent.

See What Else Is Out There

Conduent is working with a US$3.1b revenue base yet still reports a US$159 million loss and EPS in the red, which keeps profitability in question.

If that earnings volatility makes you uneasy, it could be worth checking out 84 resilient stocks with low risk scores to quickly focus on companies with stronger, more resilient profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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