Summary of CI&T Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: CI&T reported record net revenue of $1.428 billion, a 21.9% increase year-over-year, exceeding guidance of at least $1.4 billion.

Adjusted Gross Margin: Increased from 30.6% in Q1 to 32.4% in Q2, reflecting the success of new value-based pricing models.

Adjusted EBITDA: Reached $19 million with a margin of 13.3%; on an FX-neutral basis, EBITDA would have been $20.8 million (15.6% margin).

Adjusted Profit: Reported at $8.7 million (6.1% margin), down from $9 million in the prior year.

Share Repurchase: CI&T repurchased $2.8 million in shares, reducing the weighted average diluted share count by 3.6% year-over-year.

2Strategic Updates and Business Highlights

CI&T emphasized its focus on AI deployment and monetization, positioning itself to capture productivity gains through value-based commercial models.

The company launched several initiatives including Agentic SDLC, which aims to transform traditional engagements into AI-driven models, contributing to a 40% larger commercial pipeline compared to the previous year.

Partnerships with Anthropic and Mistral were highlighted, enhancing CI&T's capabilities in AI deployment and expanding its service offerings.

The company reported a 10.1% voluntary attrition rate, indicating a stable workforce, with 6,700 AI builders as part of its talent strategy.

3Forward Guidance and Outlook

For Q3 2026, CI&T expects revenue of at least $145.7 million, representing a 14.4% increase year-over-year.

Full-year revenue guidance was raised to a range of $566 million to $578 million, implying organic growth of 15.5% to 18%.

Adjusted EBITDA for the full year is projected to be between 15% to 17%, with expectations for sequential margin improvements in the latter half of the year.

4Bad News, Challenges, or Points of Concern

Consumer Goods Sector: Reported a decline of 9%, which management views as a temporary headwind.

Margin Compression: Adjusted EBITDA margin showed year-over-year compression due to foreign exchange headwinds and increased investments in sales and marketing.

FX Impact: The appreciation of the Brazilian real against the US dollar has been a consistent headwind affecting margins.

Investment Levels: Concerns were raised regarding the sustainability of high investment levels in sales and marketing, especially in light of ongoing AI deployment.

5Notable Q&A Insights

Management confirmed that 40% of new sales in the first half of 2026 were linked to new pricing mechanisms, with expectations for gradual conversion of legacy contracts to these models over the next 18 months.

The financial services vertical continues to perform strongly, growing 36% year-over-year, with expectations for ongoing expansion across all verticals.

Seasonality was cited as a factor for the deceleration in North American growth, with expectations for recovery in subsequent quarters.

Discussions highlighted the importance of maintaining a model-agnostic approach in AI deployment, ensuring flexibility to meet diverse client needs while managing compliance and security concerns. Overall, CI&T demonstrated strong growth and strategic positioning in the AI space, while also facing challenges related to specific market segments and external economic factors.