CI&T Q2 Earnings Call Highlights

CI&T reported record second-quarter 2026 revenue of $142.8 million, with management citing continued enterprise demand for artificial intelligence deployment and the early benefits of value-based commercial models. Revenue rose 21.9% year over year on an organic basis and increased 14.1% at constant currency, exceeding the company’s guidance of at least $140 million, CFO Stanley Rodrigues said. The quarter marked CI&T’s seventh consecutive quarter of double-digit organic growth, according to Founder and CEO Cesar Gon. Management said growth was broad-based across regions, industry verticals and client cohorts rather than concentrated in a single customer or market. Latin America revenue increased 32.1% year over year, while new markets grew 26.3% and North America rose 10.2%. Financial services, CI&T’s largest vertical, grew 36%, while technology and telecommunications revenue increased 68%. Consumer goods was the exception, with management describing demand in that sector as softer and reporting a 9% decline. CI&T has been shifting portions of its work away from traditional time-and-materials arrangements toward commercial models tied to outputs, consumption or client outcomes. Gon said 30% of new engagements in the first six months of 2026 used the newer value-based models, while he later clarified during the question-and-answer session that 40% of new sales booked during the first half used those models. Rodrigues said adjusted gross margin expanded sequentially to 32.4% in the second quarter from 30.6% in the first quarter. However, adjusted gross margin declined from the prior-year period due to foreign-exchange pressure, even as productivity improvements offset the resumption of payroll taxes in Brazil. Gon said the newer pricing approaches can generate contribution margins that are 3 to 15 percentage points higher than traditional time-and-materials work, depending on the mix of services. He said the company expects it could take about 18 months to reprice and renew much of its existing contract base, though certain work will remain appropriately billed on a time-and-materials basis. Adjusted EBITDA was $19 million, representing a 13.3% margin. On an FX-neutral basis, adjusted EBITDA would have been $20.8 million, or a 15.6% margin, Rodrigues said. Adjusted profit was $8.7 million, or a 6.1% margin. Adjusted diluted earnings per share were $0.07, compared with $0.09 a year earlier. The company said its EBITDA margin was affected by the appreciation of the Brazilian real against the U.S. dollar and by deliberate investment in sales and commercial capabilities. Rodrigues said the investments include a temporary 2026 component related to scaling CI&T’s... CI&T increased its 2026 revenue forecast to $566 million–$578 million and expects adjusted EBITDA margins of 15%–17%. Near-term margins remain pressured by commercial investments and foreign exchange, but management anticipates sequential improvement in the second half.