Cognizant (CTSH) Q3 2026 Earnings
Adjusted EPS excludes $51 million of Project Leap restructuring charges ($0.11 pre-tax per share) and non-operating FX effects; GAAP diluted EPS was $1.39. Prior-year Q3 2025 GAAP EPS of $0.56 included a $390 million one-time non-cash OBBBA income tax expense ($0.80 per share).
How Did CTSH Stock React to Q3 2026 Earnings?
Did CTSH Beat Earnings? Q3 2026 Results
Yes. Cognizant reported Q3 2026 earnings of $1.49 a share on Oct 29, 2026, beating the $1.46 consensus estimate by 1.8%. Revenue was $5.7B against a $5.6B estimate.
Cognizant Technology Solutions delivered a solid if unspectacular third quarter of 2026, posting adjusted EPS of $1.49 against a consensus estimate of $1.46 for a 1.78% beat, while revenue of $5.66 billion edged past expectations by 0.31% and grew 4.6% year-over-year. The clearest engine behind the quarter was Financial Services, which expanded 12.0% year-over-year and notched its third consecutive quarter of double-digit growth, helping offset modest declines in Health Sciences and Products and Resources. GAAP EPS of $1.39 looks dramatically better than the year-ago period, though that comparison is heavily distorted by a $390 million one-time non-cash tax charge tied to the One Big Beautiful Bill Act that weighed on Q3 2025 results. Adjusted operating margin improved 30 basis points to 16.3%, absorbing $51 million in Project Leap restructuring charges. Looking ahead, Cognizant guided full-year 2026 adjusted EPS to $5.72 to $5.79, representing 8% to 10% growth, with revenue expected in the range of $22.05 billion to $22.14 billion, even as peers across the IT services sector navigate an increasingly AI-disrupted demand landscape.
- Financial Services revenue grew 12.0% Y/Y (12.3% CC); third consecutive quarter of double-digit growth
- Acquisitions (3Cloud, Astreya) contributed ~210 bps to overall growth, including 875 bps to CMT
- Third-party product sales under integrated offerings strategy added ~190 bps to growth
- Adjusted operating margin expanded 30 bps to 16.3%; seventh consecutive quarter of Y/Y adjusted margin expansion
- Over 50% of code now AI-assisted; blended utilization of 86%
- Project Leap charges of $51 million weighed on GAAP operating margin (down 60 bps to 15.4%)
“We delivered third-quarter revenue above the midpoint of our guidance range, including another quarter of double-digit growth in Financial Services and our seventh consecutive quarter of year-over-year adjusted operating margin expansion.”
Cognizant CEO, on the earnings call
What Is Cognizant's Outlook?
Q4 2026 revenue is expected to be $5.49 to $5.57 billion. That is growth of 3.0% to 4.5%, or 3.2% to 4.7% in constant currency, including about 200 bps of inorganic contribution. For full-year 2026, the company expects: - Revenue of $22.05 to $22.14 billion, growth of 4.5% to 4.9%, or 4.0% to 4.4% in constant currency, including about 150 bps inorganic. - Adjusted operating margin of about 16.1%, up 30 bps. - Adjusted diluted EPS of $5.72 to $5.79, growth of 8% to 10%. - An adjusted effective tax rate of about 25%. - A share count of 460M. Project Leap total costs are now expected at $180 to $250 million, with $140 to $160 million in 2026 and the remainder through Q1 2027. The program is expected to generate about $200 million of 2026 in-year savings, to be reinvested.
CTSH YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $5.7B | $5.4B | +4.6% |
| Operating Income | $872.0M | $866.0M | +0.7% |
| Net Income | $627.0M | $274.0M | +128.8% |
CTSH Revenue by Segment
CTSH Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.