Alight, Inc. (ALIT) AI Stock Analysis
ALIT AI stock analysis summary
AI ResearchAlight, Inc. provides cloud-based human capital and business solutions across its Employer Solutions, Professional Services, and Hosted Business segments. The company reported TTM revenue of $2.23B with a net profit margin of -90.9% and has a 5-year revenue CAGR of -3.7%. The stock closed at $8.98 on October 16, 2026, down 84.7% over the past year.
- Market cap
- $421.3M
- Revenue (TTM)
- $2.23B
- P/E
- — fwd 4.9x
- 1Y return
- -84.7% S&P 500 16.8%
- Avg. target
- $17.00 89.3% vs last close
Bull case
- Free cash flow reached $250.0M in FY2025, supported by $360.0M in operating cash flow.
- The stock trades at a forward P/E of 4.9x, well below the US-listed Technology median of 18.8x.
- Wall Street analysts have a mean price target of $17.00, implying 89.3% upside from the recent close of $8.98.
Bear case
- Net loss widened significantly in FY2025 to -$3.10B, resulting in a net margin of -136.9%.
- Total debt reached $2.06B as of June 30, 2026, resulting in a high debt-to-equity ratio of 2.01.
- Revenue fell 3.2% year-over-year in the quarter ended June 30, 2026, following a 5-year revenue CAGR of -3.7%.
What Alight does
Alight, Inc. specializes in delivering integrated digital human capital and business solutions through its cloud-based platform. The company operates across three segments: Employer Solutions, Professional Services, and Hosted Business. Employer Solutions offers benefits administration, healthcare navigation, financial health programs, employee wellbeing initiatives, and payroll services. Professional Services provides cloud deployment and consulting for platforms including Workday, SAP SuccessFactors, Oracle, and Cornerstone OnDemand. Hosted Business delivers application hosting and management for on-premises human capital management software.
Growth and profitability
Alight generated revenue of $2.26B in FY2025, down 3.0% from $2.33B in FY2024 and below the $3.41B generated in FY2023. Gross margin was 20.7% in FY2025, compared to 34.0% in FY2024 and 33.4% in FY2023. Operating margin improved to 1.5% in FY2025 from -3.9% in FY2024. Net income dropped to -$3.10B in FY2025 from -$157.0M in FY2024, resulting in a net margin of -136.9%. Over the trailing twelve months, revenue was $2.23B with an operating margin of -4.7% and EPS of -$76.70. For the latest quarter ended June 30, 2026, quarterly revenue fell 3.2% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Alight held $215.0M in cash and short-term investments against total debt of $2.06B, leaving net debt at $1.85B. Shareholders' equity stood at $1.02B, resulting in a debt-to-equity ratio of 2.01 and a current ratio of 1.42. Total assets were $4.27B. In FY2025, operating cash flow was $360.0M and free cash flow reached $250.0M. During FY2025, cash usage included capital expenditures of $110.0M, share buybacks of $65.0M, and dividends paid of $86.0M. The 5-year share count change was 13.6%.
Valuation and performance
Alight trades at a forward P/E of 4.9x, compared to the median of 18.8x for its US-listed Technology peers. Its enterprise value to EBITDA ratio is 29.0x, above the peer median of 16.6x, while EV to revenue stands at 1.0x. The company's price-to-sales ratio is 0.2x versus the peer median of 2.8x, and price-to-book is 0.3x. Over the past year, Alight's shares declined 84.7%, while the S&P 500 (SPY) returned 16.8%. Over a 5-year span, the stock fell 95.9% compared to an 83.0% gain for the index.
What analysts expect
Wall Street coverage consists of 1 Strong Buy, 3 Hold, and 1 Sell ratings. The mean price target is $17.00, representing an 89.3% upside compared to the last close of $8.98 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $4.77 on revenue of $2.09B. For the next fiscal year, 4 analysts estimate revenue will fall 5.2% to $1.98B with EPS of $5.22. Alight beat EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- Net debt of $1.85B exceeds cash and short-term investments of $215.0M as of June 30, 2026.
- Trailing twelve months profit margin stands at -90.9% alongside an operating margin of -4.7%.
- Analyst projections indicate revenue will decline further to $1.98B in the next fiscal year.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ALIT AI stock analysis
This page is an AI-written research summary of Alight, Inc. (ALIT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ALIT income statement, ALIT balance sheet, ALIT key metrics, ALIT analyst forecast, ALIT chart. See the ALIT stock overview for the latest quote and news.
ALIT AI stock analysis FAQ
What were Alight's revenue and net income for FY2025?
For FY2025, Alight reported revenue of $2.26B and a net income of -$3.10B, corresponding to a net margin of -136.9%.
How much debt does Alight carry?
As of June 30, 2026, Alight had total debt of $2.06B and cash and short-term investments of $215.0M, resulting in net debt of $1.85B and a debt-to-equity ratio of 2.01.
What is the consensus analyst price target for ALIT?
The mean analyst price target for Alight is $17.00, which is 89.3% above its closing price of $8.98 on October 16, 2026.
When does Alight report earnings next?
Alight's next earnings date is scheduled for November 4, 2026.