Conduent Reports $723 Million Revenue in Q1 2026, Net Loss Improves to $33 Million

Conduent Incorporated reported a revenue of $723 million for the first quarter of 2026, a decrease of 4% from $751 million in the same period of 2025. The decline was primarily attributed to lost business and lower volumes in the Commercial segment, although this was partially offset by new business growth in the Government and Transportation segments. The company's net loss for the quarter was $33 million, an improvement from a loss of $51 million in the prior year, resulting in a net loss per share of $(0.23), compared to $(0.33) in Q1 2025.

Operating costs and expenses totaled $750 million, up from $807 million in the previous year, reflecting a decrease in costs associated with reduced revenues and ongoing cost optimization initiatives. Notably, selling, general, and administrative expenses decreased significantly due to the absence of non-recurring costs related to the January 2025 Cyber Event, which had impacted the previous year's results. Restructuring costs doubled to $8 million, reflecting ongoing efforts to streamline operations and reduce the workforce.

In terms of operational metrics, Conduent's Commercial segment generated $361 million in revenue, down 10% year-over-year, while the Government segment saw an increase to $226 million, driven by new business and price increases. The Transportation segment reported a slight revenue increase to $136 million, aided by new business and favorable exchange rates. The total cash and cash equivalents at the end of the quarter stood at $228 million, a slight decrease from $233 million at the end of 2025.

Strategically, Conduent has focused on enhancing its service offerings, including the successful implementation of a modern Medicaid platform for a government client, which replaces a legacy system. The company also implemented an intelligent automation solution for a commercial client, aimed at improving operational efficiency. Looking ahead, Conduent anticipates continued growth in its Government and Transportation segments, supported by a robust pipeline of new business opportunities, which totaled $3.5 billion as of March 31, 2026. The company remains committed to improving its operational efficiency and financial performance while navigating the challenges posed by market conditions and competitive pressures.