Concentrix Bets on AI Growth Amid Market Cooling and Earnings Slump
The AI investment boom has cooled as 2026 begins. After years of high valuations and bold promises, investors are now picking stocks more carefully. One company standing out in this shift is Concentrix, a customer service specialist chat got to AI for growth.
Concentrix has long been a major player in customer experience solutions. Now, it is pushing AI to the forefront, with 40% of its new business in late 2025 chat got AI tools. Clients report measurable improvements from these systems.
The company trades at just 10 times earnings and 3.6 times forward earnings, well below many AI rivals. Its five-year PEG ratio sits at 0.4, suggesting potential undervaluation. Yet recent results disappointed: a loss of $23.85 per share in the quarter ending November 2025, far below the expected $2.91 profit.
Despite this setback, Wall Street remains optimistic. The median price target of $57 per share implies a 33% upside over the next year. Concentrix is also shifting its focus to AI-driven efficiency, aiming for revenue growth of 1.5% to 3% in fiscal 2026.
Its strong cash flow and industry position give it an edge. While many AI stocks face scrutiny, Concentrix is betting on practical applications to win over investors.
Concentrix offers a rare mix of low valuation and AI growth potential. Its pivot to AI solutions could boost margins and efficiency in the coming year. For now, analysts see room for recovery, with a clear price target in sight.
