Cognizant Technology Solutions Stock Earnings Reports

Cognizant reported a solid Q2 2026: revenue of $5.5B, organic growth of 4.1% year-over-year in constant currency, and adjusted operating margin expansion (16% ex‑one‑time items, up 40 bps YoY). Bookings/TCV momentum continued—seven large deals (> $100M) signed in the quarter and trailing-12-month bookings up ~5%. Financial services was a standout vertical (nearly 12% YoY growth) and TriZetto (healthcare platform) grew faster than the company and delivered higher margins. The company is executing an AI‑builder strategy: launching AI market units, scaling “Frontier”-certified engineers/operators, investing in platforms (engineering and business platforms), and embedding AI across software engineering and business operations (BPO). Astreya acquisition closed, adding AI‑infrastructure/managed services capabilities. Management returned capital aggressively (Q2 repurchases of ~$1.1B; YTD ~$1.9B returned) and remains active on M&A (~$1.3B deployed YTD). Project LEAP restructuring charges (~$84M in Q2) are underway; a one-time $81M benefit related to a partial reversal of India defined contribution obligation was recorded. Guidance: Q3 revenue growth expected 3.8%–5.3% CC; full‑year revenue growth revised to 4.0%–5.5% CC (includes ~150 bps inorganic); adjusted operating margin guidance unchanged at 16%–16.2%; full‑year EPS guidance raised to $5.70–$5.82 (8%–10% growth). Management reiterated confidence in multi-year AI opportunity and the transition from labor-based services to outcome- and platform-driven offerings, while noting near-term macro caution and continued focus on disciplined execution.