Conduent Reports 12% Revenue Decline and $116 Million Net Loss in Q2 2026

Conduent Incorporated reported a decline in financial performance for the second quarter of 2026, with total revenue of $531 million, down 12% from $603 million in the same period last year. For the first half of 2026, revenue also decreased by 8% to $1.118 billion compared to $1.221 billion in the first half of 2025. The company experienced a net loss of $116 million for the quarter, compared to a loss of $40 million in Q2 2025, and a total net loss of $149 million for the first half of 2026, up from a loss of $91 million in the prior year.

The decrease in revenue was attributed to contract losses, including the loss of a major customer in the Commercial segment, and lower volumes, which were partially offset by new business ramp-up. Operating costs and expenses for the second quarter totaled $588 million, a reduction from $646 million in Q2 2025, primarily due to cost optimization initiatives and lower expenses associated with reduced revenues. The company also reported restructuring costs of $20 million in Q2 2026, significantly higher than the $8 million recorded in the same quarter last year.

Strategically, Conduent is undergoing a transformation, including the launch of a 2026 Restructuring Program aimed at improving operational efficiency and reducing costs. The company has entered into agreements to divest its Public Transit and Tolling businesses, which are expected to close in the second half of 2026. These divestitures represent a significant shift in the company's operations, as they exit the Transportation segment. The pending sales are classified as discontinued operations, with related assets and liabilities held for sale.

In terms of operational metrics, Conduent's total cash and cash equivalents stood at $228 million as of June 30, 2026, slightly down from $233 million at the end of 2025. The company has approximately 46,000 employees globally and operates in 24 countries. The total new business pipeline as of June 30, 2026, was $3.0 billion, an increase from $2.7 billion in the previous year, indicating potential future growth opportunities.

Looking ahead, Conduent aims to enhance its financial performance through ongoing restructuring efforts and strategic divestitures. The company expects to achieve at least $100 million in annual savings from its restructuring initiatives. However, the impact of the recent divestitures and the overall market conditions will be critical in shaping the company's financial outlook for the remainder of 2026 and beyond.