CNDT

• Organizational Transformation & Governance

  • 80% of Conduent's senior leadership team is either new to the company or has taken on expanded responsibilities to improve operational efficiency and support ongoing transformation.
  • A phased return-to-office approach has been launched for major work locations, with the goal of improving in-person collaboration, speeding decision-making, and delivering better client outcomes.
  • The company maintains five core strategic priorities established at the start of 2026: increasing speed and accountability, enforcing financial discipline, reducing cost structure, optimizing the business portfolio, and converting qualified pipeline into revenue growth.

• Financial Discipline & Cost Reduction

  • Tighter controls have been implemented for hiring, discretionary spending, and capital allocation, alongside enhanced cash and liquidity oversight, resulting in flat cash usage compared to the prior quarter and improved cash performance.
  • The company remains on track to deliver the full $100 million annualized cost savings program announced in Q1 2026, with the majority of the program to be implemented in 2026. Savings are focused on optimizing technology spend, right-sizing roles, eliminating duplication, reducing bureaucracy, and simplifying the enterprise operating model.

• Portfolio Optimization

  • During Q2 2026, Conduent announced the sale of its transit business to Madaxo and its tolling business to Quarter Hill, completing full exit from the transportation segment. Both transactions are expected to close by the end of 2026.
  • The sales are expected to generate approximately $234 million in gross proceeds (exceeding the prior Q1 2026 commitment of at least $200 million in portfolio action proceeds) plus a retained 7% equity interest in Quarter Hill. The majority of proceeds will be used to reduce debt and strengthen the balance sheet.
  • The transactions reduce off-balance sheet financial obligations (surety bonds and letters of credit) by approximately 80%, lower working capital intensity and annual capital expenditure requirements, and allow management to refocus resources on higher-value core businesses.

• New Business & Pipeline Growth

  • Across core commercial and government segments, Conduent holds approximately $3 billion in qualified new business opportunities, with pipeline growing sequentially over recent quarters.
  • Commercial segment booked $100 million in new business in the first half of 2026, with notable wins including a pension risk transfer administration engagement with Securium, a health platform contract with Trillium Health Resources, and an expanded vehicle citation offering with Avis Budget Group.
  • Government segment booked $89 million in new business in the first half of 2026, including a completed modernized Medicaid platform launch for New Mexico and a multiyear Medicaid system modernization renewal in Virginia. EMV chip-enabled electronic benefits transfer technology has been piloted or deployed in three states, with a fourth scheduled for launch by the end of summer 2026.

• AI Innovation & Differentiation

  • Conduent is embedding AI across its full solution portfolio to deliver measurable client outcomes, leveraging its position managing core client business processes to integrate AI into existing workflows rather than deploying isolated tools.
  • Connie, the company's AI-powered digital assistant for health and wellness platforms, resolves 86% of employee inquiries without human intervention and reduces live agent interactions by more than 20%. Conduent recently won UnitedHealthcare's 2026 Global Innovation Challenge for its new personalized agentic AI healthcare navigator.
  • Internally, Microsoft Copilot and AI-assisted development tools are being deployed to accelerate engineering work, improve productivity, and speed time-to-market for new capabilities.

The company only confirmed it is updating full-year 2026 guidance to reflect the impact of the two transportation segment divestitures announced during the quarter. No specific numerical revenue, earnings, or cash flow guidance was provided in the excerpted transcript.

For continuing operations (excluding the divested Transportation segment, which is classified as discontinued operations):

• The divested Transportation segment posted 2025 GAAP revenue of $609 million and 2025 EBITDA of $18 million, contributing 0% to current continuing operations revenue after classification as discontinued. No full segment-level financial results for continuing Commercial and Government segments were disclosed in the provided transcript excerpt.
• New business annual contract value (ACV) for Q2 2026 was $99 million, down from $111 million in Q2 2025, but up sequentially from Q1 2026. Year-to-date (first half 2026) total new business ACV is $188 million, equal to the first half of 2025. Trailing four-quarter ACV is higher than the prior year period. Commercial segment new capability ACV from expanding existing client relationships is at its highest level in several years, with a larger share of Q2 2026 ACV coming from recurring revenue than in recent quarters.

No explicit discussion of business risks or operational failures was included in the excerpted transcript. Management only noted that forward-looking statements are inherently uncertain and actual results could differ materially from current expectations due to unstated risk factors referenced in prior SEC filings.

No question and answer section was included in the provided transcript excerpt.