CTSH Q1 2026 Earnings
Reported Apr 29, 2026 at 6:49 AM ET · SEC Source
Q1 26 EPS
$1.40
BEAT +4.99%
Est. $1.33
Q1 26 Revenue
$5.41B
BEAT +0.01%
Est. $5.41B
vs S&P Since Q1 26
-25.0%
TRAILING MARKET
CTSH -22.0% vs S&P +3.0%
Market Reaction
Did CTSH Beat Earnings? Q1 2026 Results
Cognizant opened 2026 on solid footing, posting Q1 revenue of $5.41 billion, up 5.8% year-over-year and just enough to edge past consensus estimates, while adjusted diluted EPS of $1.40 beat the $1.33 consensus by 4.99%, with earnings growth of 13.8%… Read more Cognizant opened 2026 on solid footing, posting Q1 revenue of $5.41 billion, up 5.8% year-over-year and just enough to edge past consensus estimates, while adjusted diluted EPS of $1.40 beat the $1.33 consensus by 4.99%, with earnings growth of 13.8% well ahead of the top-line pace. The standout driver was Financial Services, which surged 12.4% to $1.64 billion and now accounts for roughly 30% of total revenue, helping offset a near-flat Health Sciences segment. Bookings momentum added to the constructive tone, with quarterly bookings climbing 21% year-over-year and trailing twelve-month bookings reaching $29.60 billion at a 1.4x book-to-bill ratio. Perhaps the most forward-looking element was the unveiling of Project Leap, a transformation initiative expected to generate $200 to $300 million in savings this year, which enabled management to raise full-year adjusted operating margin guidance to 16.0% to 16.2% while holding revenue guidance steady at $22.11 to $22.64 billion, with adjusted EPS seen at $5.63 to $5.77 for the full year.
Key Takeaways
- • Financial Services segment led performance with 12.4% YoY growth (10.2% constant currency)
- • 21% quarterly bookings growth with seven large deals including one mega deal
- • Over 70% growth in large deal total contract value year-over-year
- • Trailing twelve-month bookings of $29.6 billion with 1.4x book-to-bill ratio
- • Third-party product sales contributed approximately 140 basis points to overall revenue growth
- • 3Cloud acquisition contributed approximately 90 basis points to overall revenue growth
- • Adjusted operating margin expanded 10 basis points year-over-year to 15.6%
CTSH Forward Guidance & Outlook
For Q2 2026, Cognizant expects revenue of $5.45 to $5.52 billion, representing growth of 3.8% to 5.3% year-over-year (3.2% to 4.7% in constant currency). Full-year 2026 revenue guidance is unchanged at $22.11 to $22.64 billion, growth of 4.8% to 7.3% (4.0% to 6.5% in constant currency), including approximately 150 basis points of inorganic contribution. The company raised its full-year adjusted operating margin guidance to 16.0% to 16.2% (20 to 40 basis points of expansion), up from prior guidance of 10 to 30 basis points of expansion, driven by Project Leap savings. Full-year adjusted diluted EPS is expected to be $5.63 to $5.77, representing 7% to 9% growth. Adjusted effective tax rate is expected to be 25% to 26%. Project Leap is expected to generate in-year savings of approximately $200 to $300 million in 2026, with associated charges of $230 to $320 million.
CTSH YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
CTSH Revenue by Segment
With YoY comparisons, source: SEC Filings
CTSH Revenue by Geography
With YoY comparisons, source: SEC Filings
“In a complex macroeconomic environment, we delivered first quarter revenue growth in the upper half of our guidance range, with sustained bookings momentum and Financial Services again leading performance. We signed seven large deals in the quarter and delivered over 70% large deal total contract value growth year-over-year.”
— Ravi Kumar S, Q1 2026 Earnings Press Release
CTSH Earnings Trends
CTSH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CTSH EPS Trend
Earnings per share: estimate vs actual
CTSH Revenue Trend
Quarterly revenue: estimate vs actual
CTSH Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.33 | $1.40 | +4.99% | $5.41B | +0.01% |
| Q4 25 BEAT FY | $1.32 | $1.35 | +2.02% | $5.33B | +0.41% |
| FY Full Year | — | $5.28 | — | $21.11B | — |
| Q3 25 BEAT | $1.30 | $1.39 | +6.73% | $5.42B | +1.83% |
| Q2 25 BEAT | $1.26 | $1.31 | +3.99% | $5.25B | +1.07% |