CI&T Inc. (CINT) experienced a significant decline of 5.39% on Friday during the trading session, following the release of its third-quarter 2024 earnings report. Despite reporting record revenue growth and improved profitability, the company's stock faced pressure due to investor concerns over potential headwinds.

CI&T Inc. achieved a record net revenue of BRL 622.2 million in Q3 2024, marking a 17.6% increase compared to the same period in 2023. The company also reported strong growth among its top 10 clients, with net revenue up 25.3% year over year. Additionally, CI&T Inc. concluded the quarter with a solid adjusted EBITDA margin of 19.5%, reflecting a 24.2% increase compared to the previous year.

However, the company's effective tax rate increased to 38.7% for the first nine months of 2024, compared to 36.5% in the same period of 2023, due to business restructuring and loss-making in emerging regions. Furthermore, CI&T Inc. faces ongoing macroeconomic uncertainties, particularly in the US market, and competition from traditional IT services and consulting companies. The company also acknowledged that significant demand for AI-driven business use cases may not materialize until 2026, as infrastructure modernization is still in progress.