Cognizant Technology Solutions Corporation (CTSH) Earnings
Cognizant Technology Solutions Corporation is expected to report next earnings on July 29, 2026 (in NaN days), with a consensus EPS estimate of $1.38. CTSH has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +4.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $1.33 | $1.40 | +5.3% | $5.4B | -0.0% |
| Feb 4, 2026 | $1.32 | $1.35 | +2.3% | $5.3B | +0.4% |
| Oct 29, 2025 | $1.30 | $1.39 | +6.9% | $5.4B | +1.8% |
| Jul 30, 2025 | $1.26 | $1.31 | +4.0% | $5.2B | +1.1% |
| Apr 30, 2025 | $1.20 | $1.23 | +2.5% | $5.1B | +1.0% |
| Feb 5, 2025 | $1.12 | $1.21 | +8.0% | $5.1B | +0.2% |
| Oct 30, 2024 | $1.15 | $1.25 | +8.7% | $5.0B | +1.0% |
| Jul 31, 2024 | $1.12 | $1.17 | +4.5% | $4.8B | +1.0% |
| May 1, 2024 | $1.11 | $1.12 | +0.9% | $4.8B | +0.9% |
| Feb 6, 2024 | $1.04 | $1.18 | +13.5% | $4.8B | -0.1% |
| Nov 1, 2023 | $1.09 | $1.16 | +6.4% | $4.9B | -0.3% |
| Aug 2, 2023 | $0.99 | $1.10 | +11.1% | $4.9B | +1.0% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 29, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
First quarter delivered revenue growth in the upper half of guidance range, expanded adjusting operating margin, and strong bookings growth. Work to become the world's preeminent AI builder is resonating. Four significant shifts redefine the role of IT services firms: evolving towards owning full stack of AI capabilities, reimagining talent, shifting economics to outcome-based models, and evolving to underwrite operational results. AI builder stack combines proprietary methodologies, context engineering, and strategic partners' ecosystem. Three-vector strategy: AI-led productivity, industrializing AI, and identifying the enterprise with over 5,000 AI engagements. Launched Cognizant Innovation Network to back early-stage AI startups. Project Leap initiates transformation to future operating model by funding AI capabilities, partnerships, etc. Hired around 20,000 freshers in 2025 and plans to hire more in 2026.
Guidance
Second quarter revenue expected to grow 3.2%-4.7% year-over-year in constant currency, including ~150 basis points from recently completed acquisitions. Full-year revenue guidance unchanged at 4%-6.5% in constant currency. Project Leap expected to save $200-$300 million in 2026 with full benefit in 2027. Adjusted operating margin guidance range raised to 16%-16.2% for 2026. Full-year free cash flow conversion guidance 90%-100% of net income, tax rate 25%-26%, EPS guidance $5.63-$5.77 representing 7%-9% growth. Plan to return ~$1.6 billion to shareholders in 2026.
Segment performance
In Q1, revenue was $5.4 billion, growing 3.9% year-over-year in constant currency. The financial services segment grew more than 10% year-over-year in constant currency, driven by strong demand across banking and insurance clients. Health Sciences' performance was resilient but negatively impacted by approximately 300 basis points year-over-year due to lower revenue from third-party products associated with the integrated offering strategy; excluding this, services in Health Sciences grew at a similar level to the company. Products and resources were stable despite headwinds from macro, geopolitical, and trade policy uncertainty. Within Communications, Media, and Technology, revenue with technology customers continued to grow, driven by AI adoption for engineering, modernization, and platform services.
Risks & headwinds
Macro-economic uncertainty persists, market conditions are complex with different dynamics across industries. For example, Health Sciences faces regulatory uncertainty in key areas, Products and Resources face trade policy uncertainty and supply chain disruptions.
Analyst Q&A
Q: Jason Kupferberg from Wells Fargo asked about bookings breakdown, ACV growth and second half discretionary spending expectation.
A: Bookings healthy with large deals, new proportion healthy; second half driven by large deal ramps and acquisition full steam.
Q: Jim Schneider from Goldman Sachs inquired about token usage, margin leverage and token cost billing.
A: Token metering for fixed price and time material, ahead on curve with evolving rate cards.
Q: James Fossett from Morgan Stanley asked about acquisition valuation and Project LEAP.
A: Strategic M&A to fill AI builder boxes, Project LEAP to resize pyramid and speed up transition.
Q: Tianjin Huang from J.P. Morgan asked about Project LEAP's nature and outcomes.
A: Project LEAP to speed up transition to future operating model, save costs and invest in growth.
Q: Surinder Thin from Japan asked about margin improvement relative to investment.
A: Save money to invest in growth and maintain winner's circle position.