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Cognizant

Cognizant (CTSH) Q2 2026 Earnings

Reported Jul 29, 2026 at 6:35 AM ET · SEC Source

Q2 26 EPS

$1.37

MISS 0.66%

Est. $1.38

Q2 26 Revenue

$5.48B

BEAT +0.00%

Est. $5.48B

vs S&P Since Q2 26

+8.6%

BEATING MARKET

CTSH +14.7% vs S&P +6.0%

Market Reaction

Did CTSH Beat Earnings? Q2 2026 Results

Cognizant Technology Solutions posted a largely in-line second quarter for fiscal 2026, with revenue of $5.48 billion matching consensus estimates precisely and growing 4.5% year-over-year, though adjusted diluted EPS of $1.37 fell just short of the … Read more Cognizant Technology Solutions posted a largely in-line second quarter for fiscal 2026, with revenue of $5.48 billion matching consensus estimates precisely and growing 4.5% year-over-year, though adjusted diluted EPS of $1.37 fell just short of the $1.38 consensus by 0.66%, snapping a four-consecutive-quarter streak of EPS beats. The headline driver of the quarter was a second straight period of double-digit growth in Financial Services, the company's largest segment, which expanded 12.0% year-over-year to $1.73 billion, providing the engine behind the broader revenue advance even as other segments grew more modestly. The quarter also featured $84.00 million in restructuring charges under Project Leap, nearly offset by an $81.00 million benefit from the reversal of an India Defined Contribution Obligation, leaving adjusted EPS growth at 4.6% year-over-year. Cognizant also completed its $634.00 million acquisition of Astreya, an AI-focused IT managed services firm, while repurchasing $1.15 billion in shares during the quarter alone. Looking ahead, management raised full-year adjusted EPS guidance to $5.70-$5.82, representing 8%-10% growth, with full-year revenue guided to $22.04-$22.35 billion.

Key Takeaways

  • • Double-digit year-over-year revenue growth in Financial Services for second consecutive quarter
  • • Adjusted operating margin expansion of 40 basis points year-over-year
  • • Sale of third-party products contributed approximately 170 basis points to overall revenue growth
  • • Acquisitions of 3Cloud and Astreya contributed approximately 100 basis points to YoY growth
  • • Trailing twelve-month bookings increased 5% year-over-year to $29.1 billion with 1.3x book-to-bill

CTSH Forward Guidance & Outlook

For Q3 2026, Cognizant expects revenue of $5.60-$5.68 billion, representing 3.4%-4.9% year-over-year growth (3.8%-5.3% in constant currency), including approximately 200 basis points of inorganic contribution. For full-year 2026, revenue guidance is $22.04-$22.35 billion (4.4%-5.9% YoY growth, or 4.0%-5.5% constant currency), including approximately 150 basis points of inorganic contribution. Adjusted Operating Margin guidance is unchanged at 16.0%-16.2% (20-40 basis points YoY expansion). Adjusted Diluted EPS guidance was raised to $5.70-$5.82 (8%-10% YoY growth). The company expects an adjusted effective tax rate of 25%-26% and a diluted share count of approximately 460 million. Project Leap charges are expected at $230-$320 million for the full year.

24/7 Wall St

CTSH YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

CTSH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26
24/7 Wall St

CTSH Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“Our organic revenue growth momentum continued in the second quarter and was at the high end of our expectations. We are helping our clients close the AI velocity gap by pairing deep industry expertise with engineering, infrastructure and data modernization capabilities while safeguarding their data and IP. We are doing this by scaling our Frontier workforce and reskilling for the future.”

— Ravi Kumar S, Q2 2026 Earnings Press Release

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