Jacob Mutchler, Research Analyst, Noble Capital Markets, Inc.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q3 Operating Results. The company reported Q3 revenue of $534 million, down 11.7% year over year but up slightly from $531 million in Q2, as contract losses and lower client volumes continued to weigh on results. Adj. EBITDA increased 16.1% to $36 million, with margins expanding 160 basis points to 6.7%, reflecting cost reductions that more than offset the impact of lower revenue.
Underlying Business Trends. Commercial revenue declined 16% to $308 million, reflecting the completed wind-down of the company’s largest Commercial customer. Government revenue declined 5% to $226 million due to completed implementations, lost business, and lower volumes. Despite these headwinds, Government adj. EBITDA margins expanded 230 basis points to 27.9%, supported by cost-efficiency initiatives.
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Conduent Incorporated (Nasdaq: CNDT) (“Conduent” or the “Company”), a global technology-enabled operating partner, today announced the successful closing of a comprehensive $447 million refinancing transaction. The transaction extends the Company’s $357 million revolving credit facility through May 2029 and adds $90 million in additional commitments from its existing bank lenders, including a $15 million letter of credit facility, reflecting confidence in the Company’s strategy. Together with the Company’s recent and announced divestitures, including the use of proceeds to repay debt, these actions advance Conduent’s strategy to delever and de-risk its business and create greater flexibility to execute ASCEND 2026–28, the Company’s strategic plan outlined at its recent Investor Day.
The transaction establishes new revolving credit facilities with a group of existing bank lenders and rolls certain commitments under the existing revolver into the new facilities, extending maturities from October 2026 and May 2028 to May 2029.
The transaction builds on Conduent’s recently completed sale of its Public Transit business and the announced sale of its Tolling business. Together, these portfolio actions and the refinancing are expected to reduce the Company’s surety bond and letter-of-credit portfolio by approximately $550 million upon completion of the announced Tolling sale, significantly reducing financial encumbrances and releasing capital currently supporting those instruments.
With maturities extended to 2029, Conduent can continue investing in its core businesses and executing ASCEND 2026–28, the Company’s plan to accelerate profitable growth by standardizing its operations, specializing in the core solutions where it can lead and win, and scaling its go-to-market capabilities. The Company’s government and commercial programs, which millions of people rely on every day, continue without interruption.
“Deleveraging and de-risking are important priorities as we advance ASCEND 2026–28. We’ve extended our maturities, secured additional commitments from our banking partners and used divestiture proceeds to repay debt. Together with a meaningful reduction in our surety bond and letter-of-credit requirements, these actions strengthen our financial foundation and give us greater flexibility to invest in our core businesses and execute our strategy. They also support our mission to be the premier AI-led and technology-enabled business process partner for Government and Commercial clients, helping them modernize operations, enhance customer and constituent experiences, and achieve measurable business outcomes. Our banking partners’ commitment of new capital reflects their confidence in our strategy and our ability to execute ASCEND 2026–28,” said Harsha V. Agadi, Conduent President and Chief Executive Officer.
Lazard served as strategic advisor to Conduent.
About Conduent Conduent is a global technology-enabled operating partner that helps businesses and governments simplify complexity, modernize mission-critical operations and deliver measurable outcomes through AI, automation, data and human expertise. Learn more at www.conduent.com.
Forward-Looking Statements This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended. The words “anticipate,” “believe,” “estimate,” “expect,” “plan,” “intend,” “will,” “aim,” “should,” “could,” “forecast,” “target,” “may,” “continue to,” “endeavor,” “if,” “growing,” “projected,” “potential,” “likely,” “see,” “ahead,” “further,” “going forward,” “on the horizon,” and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but may not be limited to, statements regarding the Company’s Public Transit and Tolling business sales and our ability to meet the requirements and obligations under the new revolving credit facilities entered into in connection with the Transaction. These statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements contained in this press release, any exhibits to this press release and other public statements we make. Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: our significant indebtedness and the terms of such indebtedness; our ability to refinance, extend or replace our indebtedness on acceptable terms or at all; our failure to obtain or maintain a satisfactory credit rating and financial performance; and other factors that are set forth in the “Risk Factors” and other sections of our Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements made by us in this press release speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
Trademarks Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced its collaboration with the New Jersey Department of Human Services to provide people in need across the state with chip-enabled EBT cards designed to prevent benefit theft and protect their funds. The new cards, which are available to clients of the Supplemental Nutrition Assistance Program (SNAP) and the Work First New Jersey (WFNJ) cash assistance program, also allow for tap-to-pay functionality – making it the first Conduent-supported state to include this capability.
“We are excited to make these more secure cards available to all residents who participate in SNAP or the WFNJ program. The chip-enabled cards provide an added layer of security and are an important tool in our ongoing efforts to safeguard benefits and protect residents who rely on this assistance from this type of widespread benefit fraud,” said New Jersey Human Services Commissioner Stephen Cha.
EBT cards for SNAP and other benefits have traditionally relied on magnetic stripes that are vulnerable to skimming, where criminals install devices on point-of-sale terminals or ATMs to steal card information. With chips, New Jersey cardholders can now insert their cards into the terminals rather than swiping them, adding a critical layer of protection.
Beneficiaries in New Jersey can also use their EBT cards to access benefits using tap-to-pay functionality. This means cardholders can simply tap their cards at enabled terminals, reducing the risk of benefit theft while improving speed and ease of use.
Cardholders should continue to lock their card when not in use. New Jersey EBT cards can be locked and unlocked at NJFamiliesFirst.gov or by using the ConnectEBT app, which is available in Apple App Store or Google Play Store. In addition to engaging card lock features, cardholders should always maintain the privacy of their four-digit personal identification number (PIN) and identifying card information.
“As thieves increasingly have targeted taxpayer-funded government benefits in recent years, chip-enabled payment technology has emerged as a key tool to reduce EBT theft, improve account security and ensure critical funds go to rightful recipients,” said Anna Sever, President, Government Solutions at Conduent. “Conduent is proud to help states deploy this technology that also offers more flexible, fast and convenient payment options, such as tap-to-pay.”
Aside from New Jersey, Conduent continues to work with several other states that have transitioned, or are in the process of transitioning, to chip-enabled cards. Earlier this year, the company announced a collaboration with Alabama to become the second state to roll out chipped EBT cards to all its beneficiaries statewide.
The chip-enabled technology is among Conduent’s VeriSight Anti-Fraud Solutions , a suite of innovative offerings that help agencies address fraud and theft risks in public benefit programs. The suite also includes the lock and unlock capabilities with ConnectEBT, plus adaptive theft detection tools for EBT customer service centers that can identify and block suspicious activity, such as unusual phone numbers or high call volumes.
Conduent is a national leader in government payment disbursements, having disbursed approximately $80 billion in government benefit payments in 2025. Conduent also supports U.S. government agencies with end-to-end solutions for healthcare claims processing, eligibility and enrollment, and child support administration.
About Conduent
Conduent is a global technology-enabled operating partner that helps businesses and governments simplify complexity, modernize mission-critical operations and deliver measurable outcomes through AI, automation, data and human expertise. Learn more at www.conduent.com .
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Media Contact: Neil Franz, Conduent, [email protected] , +1-240-687-0127
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Reaches $80 million class action settlement. Conduent agreed to settle consolidated class action litigation related to its previously disclosed January 2025 cybersecurity incident. The incident involved unauthorized access to the company’s networks beginning in October 2024 and exposed personal information belonging to approximately 62 million individuals. The agreement remains subject to court approval.
Addresses significant litigation exposure. The settlement seeks to resolve litigation stemming from the cybersecurity incident, including claims involving Conduent and affected clients. Upon final approval, the agreement would release Conduent, its affected clients, and their affected customers from covered claims arising from the incident. We believe the agreement provides greater visibility into a significant legal uncertainty that has weighed on the company’s broader turnaround efforts.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
George Proost, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Transit sale completed. Conduent completed the previously announced sale of its public transit and fare collection business to Modaxo on October 1. In our view, the closing represents another important step in the company’s efforts to simplify its portfolio, reduce financial leverage, and focus resources on its core Commercial and Government businesses.
$125 million earmarked for debt reduction. Conduent received $140 million in cash consideration at closing and expects to use $125 million of net proceeds to repay borrowings under its revolving credit facility. We view the debt reduction favorably and believe the improved balance sheet should enhance the company’s financial flexibility as management executes its ASCEND strategy.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced that it will host an Investor Day on Wednesday, September 30, 2026, from 8:25 a.m. ET – 12:30 p.m. ET at The Pierre Hotel in New York City.
Harsha V. Agadi, President and Chief Executive Officer, and members of Conduent’s executive leadership team will provide an overview of the company’s long-term strategy, portfolio priorities and growth opportunities across its markets, followed by a question-and-answer session.
The Investor Day live webcast will be open to the public and will be available at investor.conduent.com . The presentation slides will be posted at investor.conduent.com when the presentation begins, and a replay will be available on the site for 90 days following the event.
The Company may discuss material information at the Investor Day. Presentation materials will be furnished on a Form 8-K and will be available on the site.
About Conduent Conduent is a global technology-enabled operating partner that helps businesses and governments simplify complexity, modernize mission critical operations and deliver measurable outcomes through AI, automation, data and human expertise. Learn more at www.conduent.com .
Trademarks Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, including statements regarding the Company’s Investor Day and the long-term strategy, portfolio priorities and growth opportunities to be discussed there. These statements are not guarantees of future performance. They are based on management’s current expectations and assumptions and are subject to known and unknown risks and uncertainties, many of which are outside the Company’s control, that could cause actual results to differ materially from those expressed or implied, including the factors described under Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in its subsequent Quarterly Reports on Form 10-Q, which are available at investor.conduent.com and www.sec.gov . Forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Technology leader brings more than 28 years of experience driving enterprise transformation, AI innovation and technology strategy for large, regulated organizations.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced the appointment of Narayanan Sundaresan as Chief Information and Technology Officer , effective September 14, 2026.
Narayanan Sundaresan
Sundaresan brings more than 28 years of experience leading enterprise technology organizations and digital transformation initiatives, with expertise driving AI-powered business transformation, modernizing enterprise platforms, advancing digital products, and strengthening cybersecurity and data governance.
At Conduent, Sundaresan will lead the Company’s global technology organization and strategy in support of transformation and growth. He will focus on accelerating the adoption of AI-powered capabilities across the enterprise while continuing to strengthen the secure, reliable and scalable technology foundation needed to support Conduent’s clients and operations. His leadership will help advance Conduent’s efforts to modernize operations, scale innovation and deliver measurable outcomes for clients.
“Narayanan joins Conduent at an important point in our transformation, and his experience will help us accelerate innovation, enhance client outcomes, and create greater value for our business,” said Harsha V. Agadi, Chief Executive Officer of Conduent. “I’m excited to welcome him to our leadership team and look forward to his impact as we turn our AI and technology strategy into measurable business results.”
“I’m honored to step into this role at a pivotal moment for Conduent,” said Narayanan Sundaresan, Chief Information and Technology Officer, Conduent. “My focus will be on two things that go hand in hand: accelerating the build-out of AI-powered capabilities across every part of the enterprise and scaling a technology infrastructure that is both secure and reliable enough to support that growth. AI only creates lasting value when it’s built on a foundation that clients and associates can trust.”
Prior to joining Conduent, Sundaresan served as Global Chief Information Officer and Senior Vice President, Digital Products & Technology at Strategic Education, where he led enterprise-wide AI work redesign and hyper-automation initiatives, technology harmonization across business units, and the development of global technology capabilities. He also previously held technology leadership positions at Capella Education Company, where he led digital technology initiatives, enterprise platforms and global technology delivery.
Sundaresan holds an MBA from the University of Minnesota Carlson School of Management and an M.S. in Software Engineering from the University of St. Thomas. He also completed the High Potential Leadership Program at Harvard Business School.
About Conduent Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Trademarks Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced it is expanding its enterprise AI strategy by collaborating with Google Cloud and integrating Google’s Gemini models into Conduent’s Viewpoint™ platform. The collaboration represents another milestone in Conduent’s strategy to embed GenAI across its technology platforms, helping clients modernize complex, essential workflows while improving speed, quality and operational efficiency.
Corporate legal departments are under increasing pressure to review growing volumes of structured and unstructured information while controlling costs, reducing risk and meeting tighter deadlines. By combining Conduent’s decades of legal operations expertise with Google Cloud’s AI technologies, organizations can analyze complex datasets faster, improve decision-making and deliver more defensible outcomes across eDiscovery and data breach response.
“Enterprise AI is not about replacing expertise, it is about amplifying it,” said George Wehbe, President, Commercial Solutions, Conduent. “Legal professionals are being asked to review exponentially more information with the same resources. By combining Conduent’s legal operations expertise with Google Cloud’s AI capabilities, we’re helping clients make faster, better-informed decisions while maintaining the governance, transparency and defensibility these matters demand.”
Driving Faster, Smarter Legal Outcomes At the core of the collaboration is Enhanced Review, a GenAI-powered capability within Viewpoint, which applies user-defined protocols to identify relevant content, detect legal issues, and surface high-risk documents early in the review process.
Enabled by Google’s Gemini models, Enhanced Review delivers consistent, explainable results with transparent reasoning that helps legal teams understand not just what was identified, but why.
By embedding GenAI, Enhanced Review enables:
Faster insights — key case questions answered in minutes, not days
Lower costs — 30–60% reduction in document-intensive analysis effort
Reduced risk — improved accuracy, auditability, and defensibility
Extending AI Across the Legal Workflow Beyond document review, Conduent’s collaboration with Google Cloud helps extend GenAI across the broader legal lifecycle. Viewpoint Apps use AI-powered analysis to convert large volumes of unstructured documents into structured, review-ready outputs, including chronologies, privilege logs and case reports, to accelerate insight while reducing manual effort.
In addition, Conduent’s CyberMine®, integrated with Viewpoint Data Breach Analyzer, automates breach response workflows by extracting participant data at scale, often spanning millions of records, deduplicating entries, and generating audit-ready notification lists, significantly reducing both response time and operational burden.
Built for Scale, Security, and Choice Unlike cloud-only platforms, Viewpoint gives organizations full control over how and where their data is managed. Clients can deploy the full solution as SaaS on Google Cloud, on-premises or through managed services, ensuring alignment with regulatory, security and operational requirements. This flexibility, combined with Google Cloud’s global, high-performance infrastructure, enables organizations to scale eDiscovery operations without compromising data sovereignty or control.
Advancing Innovation in Legal and Compliance Conduent’s collaboration with Google Cloud reflects a commitment to co-innovation and expanding the role of AI across legal and compliance workflows. Current capabilities focus on eDiscovery and data breach response, with planned expansion into areas such as contract analytics and investigations.
About Conduent Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Trademarks Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
George Proost, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q2 results reflect ongoing transformation. Continuing operations revenue declined 11.9% to $531 million, while adjusted EBITDA was $16 million, or a 3.0% margin. Commercial remained pressured by contract losses and lower volumes, while Government results reflected the timing of Medicaid implementation activity.
Guidance supports a stronger second half. Management established 2026 continuing operations guidance of $2.15-$2.25 billion of revenue and $140-$170 million of adjusted EBITDA, implying a roughly 7% EBITDA margin at the midpoint. Our estimates of $2.21 billion and $157 million, respectively, are modestly above the midpoint of guidance.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
George Proost, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Execution continues to improve. Management reiterated that second quarter results were in line with expectations while highlighting meaningful progress across its five strategic priorities, including cost reduction, financial discipline, portfolio optimization, and pipeline conversion. Six months into the transformation, management believes the company is beginning to see tangible operational improvements.
Transportation exit strengthens the financial profile. The announced sales of the Transit and Tolling businesses are expected to generate approximately $234 million of gross proceeds, reduce off-balance-sheet obligations by roughly 80%, lower capital requirements, and provide significant flexibility to reduce debt while sharpening management’s focus on its core businesses.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Signed divestitures expected to generate $234M in gross proceeds
Revenue: $531M from Continuing Operations
Pre-tax Income (Loss) from Continuing Operations: $(57)M
Adj. EBITDA from Continuing Operations(1) : $16M
Adj. EBITDA Margin from Continuing Operations(1): 3.0%
New Business Signings ACV from Continuing Operations(2): $99M
FLORHAM PARK, N.J., Aug. 10, 2026 — Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business process solutions and services company, today announced its second quarter 2026 financial results.
Harsha V. Agadi, Chief Executive Officer, stated: “Six months into our transformation, we are making significant progress against the priorities we established at the beginning of the year. We are simplifying the organization, strengthening financial discipline and taking structural costs out of the business, while making good progress against our approximately $100 million annualized cost-savings program. We also took significant steps this quarter to reshape our portfolio and sharpen our focus on the markets where we believe Conduent is best positioned to compete and grow. The announced sales of our Transit and Tolling businesses are expected to generate approximately $234 million in gross proceeds, plus a 7% equity interest in the Tolling buyer, exceeding the commitment we made in the first quarter to generate at least $200 million through portfolio actions. We intend to use the majority of these proceeds to reduce debt and further strengthen our balance sheet.”
“At the same time, we are seeing encouraging momentum in our go-to-market execution. Our qualified new business pipeline continues to grow, supported by new wins and expansions across both Commercial and Government. We are also investing in our go-forward portfolio and differentiated technology capabilities, including AI, to help clients modernize complex, mission-critical operations and position Conduent to capture opportunities in the large and growing markets we serve.”
“While our second-quarter financial results do not yet reflect the full impact of the actions underway, we are building a simpler, more focused and higher-performing Conduent. We remain focused on disciplined execution, converting our pipeline into profitable growth, and building a stronger cost structure. I am confident that the actions we are taking today position us to improve financial performance and create sustainable, long-term value for our clients and shareholders.”
Key Financial Q2 2026 Results
($ in millions, except margin and per share data)
Q2 2026
Q2 2025
Current Quarter Y/Y B/(W)
Revenue
$531
$603
(11.9)%
GAAP Net Income (Loss)
$(116)
$(40)
(190.0)%
Adjusted EBITDA from Continuing Operations(1)
$16
$23
(30.4)%
Adjusted EBITDA Margin from Continuing Operations(1)
3.0%
3.8%
-80 bps
GAAP Income (Loss) Before Income Tax from Continuing Operations
$(57)
$(43)
(32.6)%
GAAP Diluted EPS from Continuing Operations
$(0.46)
$(0.27)
$(0.19)
Adjusted Diluted EPS from Continuing Operations(1)
$(0.18)
$(0.16)
$(0.02)
Cash Flow from Operating Activities
$7
$(15)
146.7%
Adjusted Free Cash Flow(1)
$(8)
$(30)
73.3%
Performance Commentary Cash flow from operating activities improved by $22 million year‑over‑year, primarily due to favorable working capital results, which included, among other things, the effects of the realization of some of our long-term projects in the Government and former Transportation segments.
Q2 2026 pre-tax income (loss) from continuing operations was $(57) million versus $(43) million in the prior year period. This unfavorable variance was primarily caused by higher restructuring-related costs in the current year related to our transformation plan.
Q2 2026 Adjusted EBITDA of $16 million and Adjusted EBITDA margin of 3.0% decreased, respectively, versus the prior year, due to lower profitability in our Government segment.
Key Achievements and Industry Accolades
Portfolio Optimization & Strategic Transformation
Entered into agreements to sell the Public Transit business to Modaxo for $164 million and the Tolling business to Quarterhill Inc. for $70 million, plus a 7% equity interest in Quarterhill, further simplifying Conduent’s portfolio, strengthening financial flexibility and increasing focus on core growth opportunities.
Business Execution & Contract Wins
Signed a pension risk transfer administration engagement with Securian, expanding Conduent’s retirement administration capabilities.
Selected by Trillium Health Resources to deploy the Health Services Plus platform for claims processing, provider data management, and member services.
Implemented a modernized Medicaid platform for the State of New Mexico, replacing a 24-year-old legacy system and supporting approximately 900,000 Medicaid members.
Awarded a multi-year contract renewal by the Commonwealth of Virginia to continue operating and modernizing its Medicaid platform, serving approximately 1.6 million members.
Expanded the EBT EMV implementation following the Alabama rollout, with four states expected to be live with chip-enabled EBT cards by year-end 2026, helping strengthen payment security and protect beneficiaries from card fraud.
Innovation & Technology Investment
Introduced an AI-powered next-generation Customer Experience platform featuring real-time translation, AI-assisted training, and voice enhancement capabilities to improve customer experiences and agent performance.
Investing in next-generation Medicaid technology to modernize provider enrollment and management, with the first client implementation planned for a U.S. state, expanding Conduent’s Government Healthcare capabilities and supporting continued modernization of state Medicaid programs.
Leadership & Governance
Appointed Adam Demuyakor to the Board of Directors, adding expertise in artificial intelligence, digital transformation, innovation and enterprise technology.
FY 2026 Outlook(3)
FY 2026 Outlook(3)
Revenue
$2,150M – $2,250M
Adj. EBITDA from Continuing Operations(1)
$140M – $170M
(1)
Refer to the Appendix for definition and complete non-GAAP reconciliations of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS and Adjusted Free Cash Flow.
(2)
Refer to the Appendix for definition.
(3)
Refer to the Appendix for additional information regarding non-GAAP outlook.
Conference Call Management will present the results during a conference call and webcast on August 10, 2026 at 9:00 a.m. ET.
The call will be available by live audio webcast along with the news release and online presentation slides at https://investor.conduent.com/.
The conference call will also be available by calling 877-407-4019 toll-free. If requested, the conference ID for this call is 13761624.
The international dial-in is 1-201-689-8337. The international conference ID is also 13761624.
A recording of the conference call will be available by calling 1-877-660-6853 three hours after the conference call concludes. The replay ID is 13761624.
The telephone recording will be available until Aug 24, 2026.
About Conduent Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 46,000(1) associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com.
(1) Approximately 46,000 employees globally, including approximately 3,500 within the Transportation business.
Non-GAAP Financial Measures We have reported our financial results in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). In addition, we have discussed our financial results using non-GAAP measures from our Continuing Operations only, unless otherwise noted. We believe these non-GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with U.S. GAAP, to exclude the effects of certain items as well as their related tax effects. Management believes that these non-GAAP financial measures provide an additional means of analyzing the results of the current period against the corresponding prior period. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, our reported results prepared in accordance with U.S. GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable U.S. GAAP measures and should be read only in conjunction with our Consolidated Financial Statements prepared in accordance with U.S. GAAP. Our management regularly uses our non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. Providing such non-GAAP financial measures to investors allows for a further level of transparency as to how management reviews and evaluates our business results and trends. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on certain of these non-GAAP measures. Refer to the “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” sections attached to this release for a discussion of these non-GAAP measures and their reconciliation to the reported U.S. GAAP measures.
Forward-Looking Statements
This press release, any exhibits or attachments to this release, and other public statements we make may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “estimate,” “expect,” “expectations,” “in front of us,” “plan,” “intend,” “will,” “aim,” “should,” “could,” “forecast,” “target,” “may,” “continue to,” “looking to continue,” “endeavor,” “if,” “growing,” “projected,” “potential,” “likely,” “see,” “ahead,” “further,” “going forward,” “on the horizon,” “as we progress,” “going to,” “path from here forward,” “think,” “path to deliver,” “from here,” “on track,” “remain” and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact included in this press release or any attachment to this press release are forward-looking statements, including, but not limited to, statements regarding our financial results, condition and outlook; changes in our operating results; general and market and economic conditions; and our projected financial performance, including all statements made under the section captioned “FY 2026 Outlook” within this release. Unless otherwise noted, the discussion of our results is on a continuing operations basis and does not include discontinued operations. These statements are based on our beliefs and reflect our current views with respect to future events using currently available information and are subject to certain risks, uncertainties and assumptions, many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements contained in this press release, any exhibits to this press release and other public statements we make.
Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: risks related to recently announced divestitures including the sale of the Company’s (i) Public Transit business and (ii) Tolling business, including but not limited to our ability to realize the benefits anticipated from such transactions, as well as unexpected costs, liabilities or delays associated with such transactions; competitive restrictions applicable to the Company and its affiliates under the definitive transaction agreements; risks related to the equity interest in Quarterhill Inc. to be received as partial consideration in the Tolling transaction, including fluctuations in the value of such interest; government appropriations and termination rights contained in our government contracts; the impact of changes in government spending levels, budget priorities or efficiency initiatives, including federal cost-reduction programs, on demand for our government solutions and services; the competitiveness of the markets in which we operate and our ability to renew commercial and government contracts, including contracts awarded through competitive bidding processes; our ability to recover capital and other investments in connection with our contracts; the impact of geopolitical events and geopolitical tensions (such as the war in Ukraine and conflict in the Middle East), macroeconomic conditions, natural disasters and other factors in a particular country or region on our workforce, customers and vendors; the impact of changes in trade policies, tariffs or export controls on our cost structure, supply chain and business operations; our reliance on third-party providers; our ability to deliver on our contractual obligations properly and on time; changes in continued interest in outsourced business process services; the adverse effect of claims of infringement of third-party intellectual property rights; our ability to estimate the scope of work or the costs of performance in our contracts; the loss of key senior management and our ability to attract and retain necessary technical personnel and qualified subcontractors; our failure to develop new service offerings and protect our intellectual property rights; our ability to modernize our information technology infrastructure and consolidate data centers; expectations relating to environmental, social and governance considerations; utilization of our stock repurchase program; the effects related to our use of artificial intelligence on our business; the failure to comply with laws relating to individually identifiable information and personal health information; the failure to comply with laws relating to processing certain financial transactions, including payment card transactions and debit or credit card transactions; breaches of our information systems or security systems or any service interruptions; risks related to hacking or other cybersecurity threats to our data systems, information systems and network infrastructure and other service interruptions, including relating to the previously disclosed cyber event that took place in January 2025 (the “January 2025 Cyber Event”), including Conduent’s investigation of such incident and mitigation and remediation efforts, the nature and extent of such incident, the potential disruption to our business or operations, the potential impact on Conduent’s reputation, and Conduent’s assessments of the likely financial and operational impacts of such incident; our ability to comply with data security standards; developments in various contingent liabilities that are not reflected on our balance sheet, including those arising as a result of being involved in a variety of claims, lawsuits, investigations and proceedings; the impact of potential goodwill and other asset impairments on our results of operations; our significant indebtedness and the terms of such indebtedness; our failure to obtain or maintain a satisfactory credit rating and financial performance; our ability to obtain adequate pricing for our services and to improve our cost structure; our ability to collect our receivables, including those for unbilled services; a decline in revenues from, or a loss of, or a reduction in business from or failure of significant clients; fluctuations in our non-recurring revenue; increases in the cost of voice and data services or significant interruptions in such services; our ability to receive dividends or other payments from our subsidiaries; and other factors that are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section and other sections in our 2025 Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements made by us in this release speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced that the Virginia Department of Medical Assistance Services (DMAS) has awarded the company a contract to continue operating, and modernize, the Commonwealth’s systems that support Virginia Medicaid. The contract, which spans up to 14 years, extends Conduent’s relationship with Virginia’s Medicaid program that began in 2001.
Under the new agreement, Conduent will use its modular Conduent Medicaid Suite (CMdS) to modernize Virginia’s Medicaid Enterprise Systems and Fiscal Agent Services Solution. These entail claims processing, finance, call center services, reporting, and other core functions. This transition to an integrated, dynamic solution will help DMAS improve access to information, reduce fraud risks, and strengthen program performance. Members, providers, and staff will benefit from enhanced user experiences, supporting better health outcomes for the approximately 1.6 million Virginians enrolled in Medicaid.
Conduent will also deploy Conduent CXNow , its cloud-based Customer Experience-as-a-Service platform used by government agencies and commercial clients. Powered by AI, automation, and analytics, CXNow will streamline customer interactions across phone and chat, expand self-service options, and improve overall service quality. For the Commonwealth, these enhancements will drive additional cost savings and operational efficiency.
“We are honored to continue our long-standing collaboration with Virginia to enhance Medicaid outcomes through modernization, advanced technologies, and improved business processes,” said Anna Sever, President, Government Solutions at Conduent. “Through strong collaboration and teamwork, we are committed to delivering exceptional value to the Commonwealth and improving the lives of Virginians.”
The new contract includes a two-year design and implementation phase, followed by a six-year base term and six one-year options. It also includes continued management of incoming and outgoing mail services supporting the Medicaid program.
Conduent’s Government Solutions supports government healthcare programs across the country, delivering a range of innovative solutions such as Medicaid management and provider services, pharmacy benefits management, eligibility and enrollment support, and case management solutions. The business also provides agencies with government payments and child support services. In 2025 alone, Conduent processed over 454 million Medicaid claims and disbursed approximately $80 billion in government benefit payments.
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
FLORHAM PARK, N.J.—Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced the appointment of Anna Novoseletsky as Executive Vice President, General Counsel and Secretary.
In this role, Novoseletsky will lead Conduent’s global legal, compliance, risk and HR functions and serve as a member of the company’s executive leadership team.
“Anna is an accomplished legal executive with deep expertise in public company governance, global payments, regulatory affairs and strategic transactions,” said Harsha Agadi, Chief Executive Officer of Conduent. “She has built and led high-performing legal organizations, partnered closely with executive teams and boards, and successfully guided companies through periods of growth and transformation. Her strategic perspective and commitment to strong governance make her an outstanding addition to our leadership team as we continue executing our strategy and positioning Conduent for long-term success.”
Prior to joining Conduent, Novoseletsky served as Chief Legal Officer, Chief Compliance Officer and Corporate Secretary of Cantaloupe, Inc., where she led the company’s legal, governance and compliance functions and supported strategic growth initiatives, including mergers and acquisitions. Previously, she spent more than a decade at Discover Financial Services, serving as General Counsel for its global payments business across more than 20 countries, advising on strategic transactions, product innovation and complex regulatory matters.
“Conduent serves governments, health plans and commercial clients in highly regulated industries while reshaping its portfolio,” said Novoseletsky. “That requires legal to move at the speed of the business. I’m excited to join Conduent at a pivotal moment and help advance its transformation.”
Before Discover, Novoseletsky practiced mergers and acquisitions, securitization and capital markets law at Latham & Watkins. She earned a Juris Doctor, cum laude, from Northwestern Pritzker School of Law and Bachelor and Master of Laws degrees, magna cum laude, from the National Law Academy of Ukraine. She is admitted to practice law in Illinois.
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com.
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
