Conduent Incorporated Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Conduent's second quarter 2026 results were in line with expectations, excluding the impact of two divestitures announced during the quarter.
- The company announced the sale of its transit business to Modaxl and tolling business to Quarryhill, completing its exit from the transportation sector and expecting to generate approximately $234 million in gross proceeds plus a 7% equity interest in Quarter Hill.
- Conduent reported signing $99 million of new business annual contract value (ACV) in Q2 2026, compared to $111 million in Q2 2025, with a sequential improvement from Q1 2026.
- The company has approximately $3 billion in qualified new business opportunities in its pipeline, which has grown sequentially over several quarters.
- Conduent has sold approximately $100 million of new commercial business and $89 million of new government business in the first two quarters of 2026.
- The transportation segment generated $600 million in revenue and $18 million in EBITDA in 2025, transacting at an adjusted EBITDA multiple in the mid-teens.
- The company continues to make progress on a $100 million annualized cost savings program announced in Q1 2026, spanning all businesses and corporate functions.
- Cash usage was essentially flat compared with the prior quarter, reflecting improved cash performance and financial discipline.
- Conduent is embedding AI across its solutions, exemplified by Connie, an AI-powered digital assistant that handles approximately 86% of employee inquiries without human intervention and reduces live agent interaction by over 20%.
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Transcript
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Greetings, and welcome to the Conduent second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Nick Goel, Vice President, Investor Relations. Thank you. You may begin.
Good morning, everyone. Welcome to Conduent's second quarter 2026 earnings call. With me today are Harsha Agadi, our CEO, and Giles Goodburn, our CFO. Harsha will provide an overview of the business, and Giles will cover our financial performance in greater detail. We hope you have had a chance to review our press release issued earlier this morning. A copy of the press release and slides used during this call were filed with the SEC on Form 8-K. This information is also available on the investor relations section of our website. During this call, we will make forward-looking statements. These statements reflect management's current beliefs, assumptions, and expectations, which may change over time. Actual results could differ materially from those statements due to a number of factors. Information concerning these factors is included in our 10-K and 10-Q filings with the SEC.
Unless otherwise stated, the information presented today reflects our continuing operations. It does not include the divestitures announced during this quarter. It includes non-GAAP financial measures, which should be viewed in addition to, and not as a substitute for, our GAAP results. For more information regarding the definitions of our non-GAAP measures, how we use them, and the limitations to their usefulness for comparative purposes, please see our press release. I would like to turn the call over to Harsha.
Good morning, everyone, and thank you for joining us. Six months into my role as CEO, I have a clear view of where we stand as a company, where we need to improve, and most importantly, where I believe we have significant opportunity to create value. Over the past several months, I have spent a lot of time listening to clients, engaging with associates across our business, and reviewing our operations firsthand. My perspective was reinforced this spring at ELEVATE 2026, our client event in Chicago, where we heard directly from nearly 100 clients and partners, representing a diverse range of Fortune 100 companies, about what matters most to them: greater speed, simpler operations, continued innovation, and consistent execution.
Those conversations also reinforced that the five priorities we established at the beginning of the year remain the right ones: increasing speed and accountability, enforcing financial discipline, reducing our cost structure, optimizing our portfolio, and converting pipeline into growth. Today, I'll provide an update on the progress we're making against each of these priorities. Before I do, a brief comment on the quarter. Our second quarter results were in line with our expectations. As a result of the two divestitures we announced during the quarter, we are updating our full-year guidance to reflect the impact of those transactions. Let me start with our first priority, increasing speed and accountability. Over the past several months, we've continued simplifying our structure and how we operate, strengthening accountability, and aligning the organization around our highest priorities. We've also strengthened our leadership team to improve operational efficiency and support our transformation.
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