A global technology and services company that runs customer experience and digital operations for thousands of businesses, offering everything from strategy and data analytics to AI-powered tools like its iX Hello and iX Hero assistants. Founded in 2004 in California as a unit of SYNNEX, it spun off in 2020 and merged with France's Webhelp in 2023. Its name comes from concentric circles, meant to put the customer at the center of everything.
Operating margin fell to 3.9% as restructuring costs and wage inflation compressed profitability despite 1.9% revenue growth.
Margins compressed further this quarter as restructuring costs hit both cost of and SG&A. Revenue rose 1.9% to $2.46 billion, but fell 2.2 points to 3.9% and dropped to 33.4%, driven by $48.7 million in combined restructuring expenses and wage increases. The company is cutting costs, but the savings have yet to appear in the .
Key takeaways
fell 35.7% to $95.4 million as $32.1 million in restructuring costs within cost of and $16.6 million in SG&A restructuring expenses compressed margins.
contracted 1.6 points to 33.4%, the lowest quarterly level in the reported history, as cost of grew 4.5% and outpaced the 1.9% revenue increase.
rose 1.9% to $2.46 billion, with growth concentrated in Retail, Travel & E-commerce (+9.8%) and Banking (+12.6%), while Technology (-5.8%) and Healthcare (-13.9%) declined.
Section summaries
Management's Discussion and Analysis
Revenue grew 1.9% in Q2 FY2026, but operating income fell 35.7% due to restructuring costs and wage inflation compressing margins.
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Consolidated rose 1.9% to $2.46B in Q2, driven by growth in Retail, Travel & E-commerce (+9.8%) and Banking, Financial Services & Insurance (+12.6%), partially offset by declines in Technology & Consumer Electronics (-5.8%) and Healthcare (-13.9%).
rose 31.3% to $55.3 million, aided by a $42.1 million swing in other income to a gain from a loss a year ago, driven by foreign-currency movements and lower after repaying the Webhelp Sellers' Note.
was $209.7 million for the quarter, up 16.0% , though the first-half total fell to $72.6 million due to lower and severance payments.
The company issued $600 million of 6.500% due 2029 to redeem its 2026 Notes and voluntarily prepaid $100 million in term loans during the quarter.
What changed
fell to 33.4%, below the 34.0% in Q1 FY2026 and the 35.1% a year ago, as the $32.1 million in restructuring costs within cost of —flagged last quarter as a risk if recurring—materialized again and intensified.
The dropped to 3.9% from 4.7% in Q1 FY2026, as the 6.4% SG&A increase last quarter was followed by a further 4.0% rise this quarter, indicating the cost base has not yet reset lower despite restructuring actions.
growth decelerated to 1.9% from 5.4% in Q1 FY2026, with the Technology and Healthcare verticals remaining in decline, a concern flagged in prior quarters regarding the trajectory of those segments.
The company drew on the new 6.500% and prepaid $100 million in term loans, continuing the deleveraging and refinancing activity noted in prior filings, though the higher coupon rate will increase going forward.
What to watch
Whether the $48.7 million in combined quarterly restructuring costs decline in Q3 FY2026, signaling that the severance actions are complete and the can begin to recover from 3.9%.
The trajectory of after falling to 33.4%, and whether delivery personnel cost inflation and restructuring costs ease enough to stabilize the metric above this new low.
Whether growth in the declining Technology (-5.8%) and Healthcare (-13.9%) verticals stabilizes or returns to growth, as their continued weakness is offsetting gains in Banking and Retail.
The impact of the new 6.500% on , and whether the company continues to prioritize term-loan prepayments over share repurchases under the $600 million authorization.
contracted to 33.4% from 35.1% as cost of grew 4.5%, pressured by $32.1M in higher restructuring expenses (severance) and wage increases across certain countries.
SG&A expenses increased 4.0% to $727.9M, including $16.6M in restructuring costs, pushing down to 3.9% from 6.1% a year ago.
rose to $55.3M from $42.1M, aided by a swing to $42.1M in other income (primarily foreign currency gains) and lower after repaying the Webhelp Sellers' Note.
declined to $174.7M for the first half, and fell to $72.6M, reflecting lower and higher severance payments.
The company issued $600M of 6.500% Senior Notes due 2029 to redeem $600M of 2026 Notes, and voluntarily prepaid $100M of term loans during the quarter.
Quantitative and Qualitative Disclosures About Market Risk
Revenue is ~52% USD-denominated; the company hedges PHP/INR costs and carries variable-rate debt sensitive to rate changes.
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Approximately 52% of is priced in U.S. dollars, with significant contracts also denominated in euros, British pounds, Japanese yen, and Brazilian real.
A substantial portion of delivery costs is incurred in local currencies, creating foreign exchange exposure that is partially hedged.
As of May 31, 2026, the company held FX forward contracts to acquire PHP 43,620.0 million for $737.2 million and INR 33,240.0 million for $359.7 million through May 2028.
A hypothetical 10% adverse move in underlying FX rates would cause an estimated $104.3 million loss in on those hedges, substantially offset by gains on the underlying exposures.
All outstanding debt under the Restated Credit Agreement and Securitization Facility is variable-rate; a 100 rate increase would raise annual by approximately $24.5 million.
The company manages by transacting only with investment-grade institutions and diversifying across financial institutions.
From time to time, we are involved in legal proceedings in the ordinary course of business. We do not believe that these proceedings will have a material adverse effect on the results of our operations, our financial position, or the cash flows of our business. During the three…
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From time to time, we are involved in legal proceedings in the ordinary course of business. We do not believe that these proceedings will have a material adverse effect on the results of our operations, our financial position, or the cash flows of our business. During the three months ended May 31, 2026, there were no new material legal proceedings and no material developments in any legal proceedings reported in our Annual Report on Form 10-K for the fiscal year ended November 30, 2025.
You should carefully review and consider the information regarding certain factors that could materially affect our business, results of operations, and financial condition set forth in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended November 30, 2025…
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You should carefully review and consider the information regarding certain factors that could materially affect our business, results of operations, and financial condition set forth in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended November 30, 2025. There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2025.