Shares of Concentrix Corp (CNXC) tumbled 8.07% in after-hours trading on Thursday following the release of its second-quarter earnings report for fiscal year 2025. The customer experience solutions provider's results fell short of analysts' expectations on key metrics, despite beating revenue estimates.

Concentrix reported adjusted earnings per share (EPS) of $2.70, missing the analyst consensus estimate of $2.75. While this represents a slight increase from $2.69 per share in the same period last year, it wasn't enough to satisfy investors. The company's quarterly revenue reached $2.417 billion, surpassing the estimated $2.381 billion and marking a 1.5% year-over-year increase.

The stock's sharp decline can be attributed to several factors. First, the earnings miss, albeit small, disappointed investors who had higher expectations. Second, the company's adjusted operating margin decreased to 12.6%, primarily due to temporary program pauses mid-quarter and investments ahead of expected accelerated growth in the second half of the year. Additionally, Concentrix's guidance for the third quarter fell short of analyst projections, with expected adjusted EPS between $2.80 and $2.91, below the consensus estimate of $2.92.

Despite the negative market reaction, Concentrix remains optimistic about its future performance. The company raised its full-year revenue growth outlook and expects to return over $240 million to shareholders in fiscal 2025 through share repurchases and dividends. However, investors seem to be focusing on the current quarter's shortfall and near-term challenges, as reflected in the sharp after-hours stock decline.