CI&T Q2 FY26 earnings call CINT

CI&T is focusing its business on AI deployment and monetization, addressing the gap where 95% of AI initiatives show no measurable business return. The company aims to install real AI capability within clients' core operations and capture productivity gains through value-based commercial models. This strategy is reflected in robust revenue growth and increased sales investments, positioning CI&T for durable, profitable growth in 2027 and beyond.

The company is implementing four new value-based pricing models (fixed price with higher margin, output-based, price per consumption, outcome-based) which yield 3 to 15 percentage points higher margins than traditional time-and-materials. In the first six months of 2026, 30% of new engagements utilized these models, contributing to a sequential adjusted gross margin expansion from 30.6% to 32.4%. CI&T expects continued gross margin improvement as these models broaden across its business.

CI&T made a deliberate choice to invest significantly in its commercial organization in 2026, leading to a 40% larger commercial pipeline year-over-year. This investment, which temporarily compressed adjusted EBITDA margin to 13.3%, is aimed at capturing accelerating demand for AI deployment and supporting new offerings. Management expects some of these investments to moderate, while structural sales expansion will remain, leading to sequential EBITDA margin improvements in the second half of the year.

The company closed Q2 FY26 with approximately 8,100 professionals, achieving a voluntary attrition rate of 10.1%. A key differentiator is its 6,700 AI builders, professionals reskilled to work AI natively, addressing the growing demand for AI deployment talent. This internal capability has resulted in revenue per AI builder reaching over $80,000 on a last 12-month basis, up 7% year-over-year, and contributes to operating leverage and gross margin expansion.

CI&T introduced 'Agentic Enterprise Reinvention,' a new service line designed to help enterprises redesign core operations using AI. This offering differentiates itself through small, senior forward deployment teams, lean-based process transformation, and outcome-based fees. The company believes this approach, which aims to bring 60% to 80% of core processes onto an agent journey in months, positions it to capture significant value by moving clients beyond mere efficiency gains to new revenue and margin structures.

The company's growth was broad-based, with Latin America expanding 32.1% year-over-year, new markets growing 26.3%, and North America adding 10.2%. Financial services grew 36%, and technology and telecommunications accelerated to 68% growth. Growth was also strong across client cohorts, with clients outside the top 10 growing 24.1%, outpacing the 19% growth of the top 10, indicating diversified momentum not reliant on any single account.