Cognizant (Nasdaq: CTSH) posts Q1 2026 growth and unveils Project Leap cost program
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Cognizant Technology Solutions reported first quarter 2026 revenue of $5.413 billion, up 5.8% year-over-year, or 3.9% in constant currency. GAAP operating margin was 15.6%, and GAAP diluted EPS was $1.39, while adjusted diluted EPS rose to $1.40 from $1.23 a year earlier.
Trailing 12‑month bookings reached $29.6 billion, up 11% and representing a book‑to‑bill of about 1.4x, helped by seven large deals including one mega deal. The company ended the quarter with 357,600 employees and voluntary Tech Services attrition of 12.3%.
Cognizant introduced Project Leap, expected to generate $200–$300 million of 2026 savings and drive full‑year 2026 adjusted operating margin guidance to 16.0%–16.2%. The program is expected to incur $230–$320 million of costs, largely in 2026, mainly severance and other personnel‑related charges.
Positive
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Negative
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Insights
Solid Q1 growth, stronger bookings, and a sizable efficiency program reshape 2026 earnings mix.
Cognizant posted Q1 2026 revenue of $5.413B, up 5.8% year-over-year, with constant-currency growth of 3.9%. Adjusted operating margin held at 15.6%, and adjusted diluted EPS increased to $1.40 from $1.23, outpacing top-line growth.
Demand indicators were robust: trailing 12‑month bookings climbed to $29.6B, up 11% with a roughly 1.4x book‑to‑bill, and seven large deals (including one mega deal) were signed. Financial Services grew 12.4% year-over-year, supporting the overall mix.
Project Leap is central to 2026 economics. Management expects in‑year savings of $200–$300M and related costs of $230–$320M, largely in 2026. This underpins raised 2026 adjusted operating margin guidance to 16.0%–16.2% and adjusted EPS guidance of $5.63–$5.77, implying 7–9% growth. Actual margin realization will depend on execution of workforce and technology footprint changes.
Strong capital returns and an acquisition weighed on cash, but net cash remains positive.
Q1 2026 operating cash flow was $274M versus $400M a year earlier, with free cash flow at $198M. The company spent $730M on business combinations and repurchased $444M of stock, while paying $159M in dividends at $0.33 per share.
These outlays reduced cash and cash equivalents to $1.504B from $1.901B at year-end and lowered net cash to $949M from $1.338B. Total debt stood at $568M (short- and long-term combined) as of March 31, 2026. The remaining share repurchase authorization of $1.491B provides scope for continued capital return, subject to future cash generation and investment needs.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $5.413 billion
Q1 2026 Adjusted Diluted EPS: $1.40
Trailing 12‑month bookings: $29.6 billion
+5 more
8 metrics
Q1 2026 Revenue
$5.413 billion
Quarter ended March 31, 2026; 5.8% year-over-year growth
Q1 2026 Adjusted Diluted EPS
$1.40
Up from $1.23 in Q1 2025
Trailing 12‑month bookings
$29.6 billion
Up 11% year-over-year; book-to-bill about 1.4x
Project Leap expected savings
$200–$300 million
In-year savings expected in 2026
Project Leap expected costs
$230–$320 million
Primarily severance and other charges in 2026
2026 revenue guidance
$22.11–$22.64 billion
Implied 4.8–7.3% year-over-year growth
2026 adjusted operating margin guidance
16.0–16.2%
Raised to 20–40 bps expansion year-over-year
Q1 2026 free cash flow
$198 million
Net cash from operating activities minus capex; down from $393M in Q1 2025
Key Terms
Adjusted Operating Margin, constant currency revenue growth, book-to-bill, free cash flow, +2 more
6 terms
Adjusted Operating Margin financial
"Adjusted Operating Margin1 of 15.6% increased 10 basis points year-over-year"
Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.
constant currency revenue growth financial
"revenue of $5.4 billion increased 5.8% year-over-year or 3.9% in constant currency1"
book-to-bill financial
"bookings increased 11% year-over-year to $29.6 billion, which represented a book-to-bill of approximately 1.4x"
The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.
free cash flow financial
"Free cash flow is defined as cash flows from operating activities plus proceeds from sale of property and equipment, net of purchases"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Voluntary Attrition - Tech Services financial
"Voluntary Attrition - Tech Services was 12.3% for the period ended March 31, 2026"
non-operating foreign currency exchange gains and losses financial
"Non-operating foreign currency exchange gains and losses are reported in "Foreign currency exchange gains (losses), net""
Earnings Snapshot
Revenue: $5.413 billion · Guidance included
Q1 2026
Revenue
$5.413 billion
5.8% year-over-year
Revenue constant currency
3.9% growth
constant currency basis
GAAP operating margin
15.6%
down from 16.7% a year earlier
Adjusted operating margin
15.6%
up from 15.5% a year earlier
GAAP diluted EPS
$1.39
up from $1.34 in Q1 2025
Adjusted diluted EPS
$1.40
up from $1.23 in Q1 2025
Guidance
For full-year 2026, Cognizant guides to revenue of $22.11–$22.64 billion, adjusted operating margin of 16.0–16.2%, and adjusted diluted EPS of $5.63–$5.77, representing 7–9% year-over-year EPS growth.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 29, 2026
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) (Zip Code)
(201 ) 801-0233
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock, $0.01 par value per share | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 29, 2026, Cognizant Technology Solutions Corporation (the “Company”), issued a press release to report the Company’s financial results for the quarter ended March 31, 2026. The full text of the press release and the infographic embedded in and part of such press release are attached to this current report on Form 8-K as Exhibits 99.1 and 99.2, respectively.*
Item 7.01. Regulation FD Disclosure.
The Company’s investor presentation containing additional financial information for the quarter ended March 31, 2026 is attached to this current report on Form 8-K as Exhibit 99.3.*
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |||||||
| 99.1 | Press Release of Cognizant Technology Solutions Corporation, dated April 29, 2026. | |||||||
| 99.2 | Investor Infographic, dated April 29, 2026. | |||||||
| 99.3 | Investor Presentation, dated April 29, 2026. | |||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). | |||||||
| * | The information in Item 2.02, Item 7.01, Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 of this current report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION | |||||
By: | /s/ Jatin Dalal | ||||
Name: | Jatin Dalal | ||||
Title: | Chief Financial Officer | ||||
Date: April 29, 2026
Exhibit 99.1
Cognizant Reports First Quarter 2026 Results
Revenue growth in upper half of guidance range; double digit adjusted EPS growth year-over-year;
21% quarterly bookings growth, driven by seven large deals
•Revenue of $5.4 billion increased 5.8% year-over-year or 3.9% in constant currency1
•Operating margin of 15.6% decreased 110 basis points year-over-year; Adjusted Operating Margin1 of 15.6% increased 10 basis points year-over-year
•GAAP EPS of $1.39 increased 3.7% year-over-year; Adjusted EPS1 of $1.40 increased 13.8% year-over-year
•Trailing 12-month bookings of $29.6 billion increased 11% year-over-year, driven by 21% growth in the first quarter; 7 large deals signed in the first quarter
•2026 constant currency revenue growth guidance is unchanged at 4.0% to 6.5%
•2026 Adjusted Operating Margin guidance is increased to 16.0% to 16.2%, year-over-year expansion of 20 to 40 basis points compared to prior guidance of 10 to 30 basis points of expansion
TEANECK, N.J., April 29, 2026 - Cognizant (Nasdaq: CTSH), a leading AI builder and technology services provider, today announced its first quarter 2026 financial results.
“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,” said Ravi Kumar S, Chief Executive Officer. “We believe our AI builder strategy, deep industry expertise and scaled partnership ecosystem uniquely position us to bridge the 'AI Velocity Gap' by helping clients convert their significant AI investments into tangible business outcomes.”
| $ in millions, except per share data | Q1 2026 | Q1 2025 | |||||||||
| Revenue | $5,413 | $5,115 | |||||||||
| Y/Y Change | 5.8 | % | 7.5 | % | |||||||
Y/Y Change CC1 | 3.9 | % | 8.2 | % | |||||||
| GAAP Operating Margin | 15.6 | % | 16.7 | % | |||||||
Adjusted Operating Margin1 | 15.6 | % | 15.5 | % | |||||||
| GAAP Diluted EPS | $1.39 | $1.34 | |||||||||
Adjusted Diluted EPS1 | $1.40 | $1.23 | |||||||||
See "Revenue by Business Segment and Geography" section for additional revenue details and drivers of growth.
1 Constant currency ("CC") revenue growth, Adjusted Operating Margin and Adjusted Diluted Earnings Per Share ("Adjusted Diluted EPS" or "Adjusted EPS") are not measures of financial performance prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). A full reconciliation of Adjusted Operating Margin guidance to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts. See “About Non-GAAP Financial Measures and Performance Metrics” for more information and a partial reconciliation to the most directly comparable GAAP financial measure at the end of this release.
“In the first quarter, we achieved strong bookings growth of 21%, expanded our adjusted operating margin year-over-year and drove double-digit adjusted EPS growth that outpaced revenue,” said Jatin Dalal, Chief Financial Officer. "The Project Leap program we announced today is a key step toward accelerating our vision of the operating model of the future and funding continued investments in AI, competitive offerings and the re-skilling of our workforce.”
Bookings
On a trailing-twelve-month basis, bookings increased 11% year-over-year to $29.6 billion, which represented a book-to-bill of approximately 1.4x. Bookings in the first quarter increased 21% year-over-year. First quarter bookings included seven large deals, which are deals with total contract value of $100 million or greater, of which one was a mega deal, which is a deal with total contract value of $500 million or greater.
Employee Metrics
On a trailing-twelve months basis, Voluntary Attrition - Tech Services was 12.3% for the period ended March 31, 2026, as compared to 12.3% and 12.0% for the periods ended December 31, 2025 and March 31, 2025, respectively. Total headcount as of March 31, 2026 was 357,600, an increase of 6,000 from December 31, 2025 and 21,300 from March 31, 2025.
In the first quarter of 2026, we modified our definition of 'Voluntary Attrition - Tech Services' to exclude certain categories of negotiated separations. Prior periods disclosed have been recast to conform to the new definition.
Return of Capital to Shareholders
The Company repurchased 6.3 million shares for $427 million during the first quarter under its share repurchase program. As of March 31, 2026, there was $1.5 billion remaining under the share repurchase authorization. In April 2026, the Company declared a quarterly cash dividend of $0.33 per share for shareholders of record on May 18, 2026. This dividend will be payable on May 27, 2026.
Project Leap
In the second quarter of 2026, we introduced Project Leap, a program designed to accelerate our transformation to the operating model of the future by funding investments in our integrated offerings, AI capabilities and partnerships, reshaping productivity through competitive offerings and upskilling our workforce. By fostering a workforce that is properly sized, AI-enabled and possesses the skills required for success as well as optimizing our technology footprint, we aim to streamline operations and enhance productivity through AI-led efficiencies, creating a more agile and cost-effective operating model. This program is expected to generate in-year savings of approximately $200 million to $300 million in 2026. These expected savings, net of the investments described above, are enabling us to raise our 2026 adjusted operating margin guidance from expansion of 10 to 30 basis points to expansion of 20 to 40 basis points, in-line with our long-term aspiration to expand margins.
In connection with Project Leap, we expect to record costs of $230 million to $320 million, with substantially all of the costs expected to be incurred in 2026. This consists of $200 million to $270 million of employee severance and other personnel related costs and $30 million to $50 million of other charges.
Second Quarter and Full-Year 2026 Guidance2
(all growth rates year-over-year)
•Second quarter revenue is expected to be $5.45 to $5.52 billion, growth of 3.8% to 5.3%, or 3.2% to 4.7% in constant currency.
•Full-year 2026 revenue is expected to be $22.11 to $22.64 billion, growth of 4.8% to 7.3%, or 4.0% to 6.5% in constant currency.
•Full-year 2026 Adjusted Operating Margin3 is expected to be approximately 16.0% to 16.2%, or 20 to 40 basis points of expansion.
•Full-year 2026 Adjusted Diluted EPS3 is expected to be in the range of $5.63 to $5.77, growth of 7% to 9%.
Select Company, Client and Partnership Announcements
Cognizant is building a portfolio of capabilities combined with deep domain expertise to harness and advance an AI-led future. Cognizant’s progress has been accelerated through client agreements, platform enhancements, and partnerships. Recent announcements include:
Client Announcements
•Joined the J.P. Morgan Payments Consultant Implementation Program (PCIP), a trusted network of resources that helps J.P. Morgan clients modernize their business by unifying technology and treasury with implementations guided by the expertise of J.P. Morgan and its partners. Cognizant will offer enhanced connectivity to help mutual clients connect J.P. Morgan Payments solutions to their treasury management system (TMS) and enterprise resource planning (ERP) platforms.
•Signed a three-year strategic agreement with DAMAC Group, a UAE-based global conglomerate encompassing a diverse portfolio across various industries, to transform IT operations and elevate customer experience. The engagement encompasses a wide spectrum of IT infrastructure services and application services across DAMAC's ecosystem, including digital and e-commerce platforms, CRM, core enterprise systems, data platforms, and AI-led initiatives.
•Expanded its agreement with Wallenius Wilhelmsen, a leading global provider of shipping and vehicle logistics, to support the company with technology services covering core applications and infrastructure. By applying its expertise in modernizing legacy portfolios and introducing practical AI-driven efficiencies, Cognizant is working to support Wallenius Wilhelmsen's work to simplify its digital operations and build a stronger digital foundation.
Platform Enhancements and Partnerships
•Announced it has been named among a select group of partners chosen by OpenAI to scale the impact of Codex across enterprise clients worldwide. Cognizant is embedding Codex directly into its engineering workflows across its Software Engineering Group, with the goal of making it a standardized capability for how Cognizant builds and delivers software.
2 Guidance as of April 29, 2026
3 A full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts. See “About Non-GAAP Financial Measures and Performance Metrics” for more information and a partial reconciliation to the most directly comparable GAAP financial measures at the end of this release.
•Announced the launch of Agentic Retail CX, a new AI-powered contact center solution built on Google Cloud’s Gemini Enterprise for Customer Experience (CX). Designed specifically for retailers, the solution helps brands deliver personalized, omnichannel experiences while reducing operational costs, improving employee productivity and accelerating the adoption of agentic AI across the retail value chain.
•Established a dedicated Gemini Enterprise Practice, in collaboration with Google Cloud, to accelerate enterprise adoption of Gemini Enterprise at scale. Cognizant has also been designated by Google Cloud as a Diamond partner, the highest tier in the Google Cloud partner program, in recognition of its AI Builder approach. Under the program, Cognizant plans to deploy forward-deployed engineers, senior engineering talent embedded directly within client environments, working in close collaboration with Google Cloud's teams.
•Partnered with Palantir to accelerate AI-driven modernization in healthcare and enterprise operations. Cognizant will leverage Palantir Foundry and Palantir Artificial Intelligence Platform (AIP) to advance AI integration within Cognizant's TriZetto healthcare business, while jointly pursuing broader enterprise AI transformation opportunities for clients across industries.
•Announced that its AI Lab has received three new U.S. patents, bringing its total number of patents to 65 in the U.S. and 88 globally. The newly granted patents build on the lab’s work in areas such as human-AI collaboration for decision-making and deep learning for specialized tasks.
•Cognizant AI Lab unveiled in four new research papers how the company is fine-tuning large language models (LLMs) using evolution strategies. The papers introduce training methods that help LLMs handle more complex reasoning tasks while running more efficiently with fewer computing resources.
•Expanded AI infrastructure capabilities with launch of Cognizant AI Factory, a multi-tenant, enterprise-grade offering powered by Dell Technologies and NVIDIA AI infrastructure and software platform. Cognizant's proprietary Fractional GPU technology, interoperable with NVIDIA Multi-Instance GPU, enables secure, isolated GPU "slices" that allow multiple business units to run AI workloads concurrently in a unified environment. Dell Technologies' proven expertise in delivering secure, scalable and high-performing AI infrastructure aim to help Cognizant AI Factory meet the rigorous demands of enterprise AI workloads.
•Unveiled Cognizant Skillspring™, a multimodal, AI-native, conversational learning platform designed to redefine learning in the AI era and help businesses cultivate AI-ready talent at scale. Cognizant Skillspring uses AI agent-driven tutoring and content creation to deliver high-quality, personalized learning across large workforces while helping organizations manage learning and development costs more efficiently.
•Belcan, a Cognizant company, announced that Belcan Government Solutions (BGS) was selected as one of America's outstanding Navy Reserve employers for 2026 in recognition of their exceptional support of reservists.
Select Company Recognition, Announcements, and Analyst Ratings
•Announced the launch of the Cognizant Innovation Network, a corporate investment arm focused on backing early to mid-stage enterprise software startups. The initiative aims to accelerate Cognizant's ability to identify breakthrough technologies and integrate them into solutions for its Global 2000 client base.
•Appointed by the UK Department for Science, Innovation and Technology (DSIT) as an industry partner to the Government's TechFirst program, aimed at helping young people from all backgrounds find careers in technology as part of the UK AI Opportunities Action Plan. Cognizant aims to provide 100 work placements to undergraduate and master's students, aligned to the Digital & Technology Sector Plan's six frontier industries as outlined in the Government's UK Industrial Strategy. Building on the success of its Synapse initiative, Cognizant also aims to support 1,000 volunteering hours to inspire and mentor the next generation of tech talent across UK schools and colleges.
•Recognized on Fortune's list of "America's Most Innovative Companies 2026" for the fourth consecutive year. Fortune and Statista evaluated America's Most Innovative Companies 2026 across three dimensions: product innovation, process innovation and innovation culture. Patent activity was also analyzed and factored into the final score.
•Named one of America's Greatest Workplaces for Entry Level 2026 by Newsweek and Plant-A Insights Group. The study evaluated employers across categories most meaningful to early-career professionals, including work-life balance and corporate culture to career progression. With more than 610,000 company reviews collected in 2025 and 75,000 interviews from previous studies, the survey ranks among the largest independent evaluations of the entry-level workforce in the United States.
•Achieved recognition as one of the 2026 World's Most Ethical Companies® by Ethisphere, a global leader in defining and advancing the standards of ethical business practices. This award celebrates companies that demonstrate a commitment to ethical business practices through robust programs that positively impact employees, communities and broader stakeholders as well as contributing to sustainable, long-term business growth.
•Recognized as a Leader by Everest Group® in:
◦Digital Workplace Services PEAK Matrix® Assessment, 2026 – Mid-Market Enterprises
◦Healthcare Payer Intelligent Operations PEAK Matrix® Assessment, 2026
◦Duck Creek Services PEAK Matrix® Assessment, 2026
•Market Leader in HFS Horizons:
◦Next-Gen IT Infrastructure Services, 2026 Report
◦Agentic Services, 2026 Report
•A Leader in IDC MarketScape:
◦Worldwide Data Modernization Services Providers for Retail and Restaurants 2026 Vendor Assessment, doc #US53010625, March 2026
•Leadership in ISG Provider Lens™:
◦Oracle Ecosystem Partners, 2025 – US
•A Leader in The Forrester Wave™4
◦Microsoft Business Application Services, Q1 2026
•Leadership in Avasant’s RadarView:
◦End-User Computing Services, 2026
◦Hybrid Enterprise Cloud Services, 2026
◦Life Sciences Digital Services, 2026
◦Benelux Digital Services, 2026
•A Leader in NelsonHall GenAI & Process Automation in Banking NEAT Evaluation
Conference Call
Cognizant will host a conference call on April 29, 2026, at 8:30 a.m. (Eastern) to discuss the Company’s first quarter 2026 results. To listen to the conference call, please dial (877) 810-9510 (domestic) or +1 (201) 493-6778 (international) and provide the following conference passcode: “Cognizant Call.”
The conference call will also be available live on the Investor Relations section of the Cognizant website at http://investors.cognizant.com. An earnings supplement will also be available on the Cognizant website at the time of the conference call. For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or +1 (201) 612-7415 (internationally) and enter 13759205 beginning two hours after the end of the call until 11:59 p.m. (Eastern) on Wednesday, May 13, 2026. The replay will also be available at Cognizant’s website www.cognizant.com for 60 days following the call.
About Cognizant
Cognizant (Nasdaq: CTSH) is an AI builder and technology services provider, building the bridge between AI investment and enterprise value by building full-stack AI solutions for our clients. Our deep industry, process and engineering expertise enables us to build an organization's unique context into technology systems that amplify human potential, realize tangible returns and keep global enterprises ahead in a fast-changing world. See how at www.cognizant.com or @cognizant.
4 Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity here.
Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, strategic partnerships and collaborations, competitive position and opportunities in the marketplace, investment in and growth of our business, the pace and magnitude of change and client needs related to generative AI, the effectiveness of our recruiting and talent efforts and related costs, labor market trends, the anticipated amount of capital to be returned to shareholders, our anticipated financial performance, matters related to Project Leap, expectations related to our pending acquisition of Astreya, and other statements regarding matters that are not historical facts. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, our ability to successfully use AI-based technologies and the impact those technologies may have on the demand and terms for our services, the competitive marketplace for talent and its impact on employee recruitment and retention, legal, reputational and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration, trade and taxes, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
About Non-GAAP Financial Measures and Performance Metrics
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with GAAP, this press release includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Operating Margin, Adjusted Net Income, Adjusted Diluted EPS (or Adjusted EPS), free cash flow, net cash and constant currency revenue growth. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of our non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.
Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations exclude unusual items, such as the gain on sale of property and equipment in the first quarter of 2025. Our non-GAAP financial measures Adjusted Net Income and Adjusted Diluted EPS exclude unusual items, such as the gain on sale of property and equipment, net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments. The income tax impact of each item excluded from Adjusted Net Income and Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Free cash flow is defined as cash flows from operating activities plus proceeds from sale of property and equipment, net of purchases of property and equipment. Net cash is defined as cash and cash equivalents and short-term investments less short-term and long-term debt. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period’s foreign currency exchange rates measured against the comparative period's reported revenues.
Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced transparency into our operating results. For our internal management reporting and budgeting purposes, we use various GAAP and non-GAAP financial measures for financial and operational decision-making, to evaluate period-to-period comparisons, to determine portions of the compensation for our executive officers and for making comparisons of our operating results to those of our competitors. Accordingly, we believe that the presentation of our non-GAAP measures, which exclude certain costs, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations.
A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and may exclude costs that are recurring such as our net non-operating foreign currency exchange gains or losses. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from our non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.
Performance Metrics
Bookings are defined as total contract value (or TCV) of new contracts, including new contract sales as well as renewals and expansions of existing contracts. Bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large contracts. Our book-to-bill ratio is defined as bookings for the trailing twelve months divided by revenue for the same period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. The extent and timing of conversion of bookings to revenues may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and contract modifications, including terminations, over the lifetime of a contract. The majority of our contracts are terminable by the client on short notice often without penalty, and some without notice. We do not update our bookings for subsequent terminations, reductions or foreign currency exchange rate fluctuations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenues. However, management believes that it is a key indicator of potential future revenues and provides a useful indicator of the volume of our business over time. Large deals and mega deals are defined as deals with a total contract value of $100 million or greater and $500 million or greater, respectively.
| Investor Relations Contact: | Media Contact: | |||||||||||||
| Tyler Scott | Jeff DeMarrais | |||||||||||||
SVP, Investor Relations | SVP, Corporate Communications | |||||||||||||
| +1 551-220-8246 | +1 475-223-2298 | |||||||||||||
| Tyler.Scott@cognizant.com | Jeff.DeMarrais@cognizant.com | |||||||||||||
- tables to follow -
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| (in millions, except per share data) | Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | $ | 5,413 | $ | 5,115 | |||||||
| Operating expenses: | |||||||||||
| Cost of revenues (exclusive of depreciation and amortization expense shown separately below) | 3,638 | 3,397 | |||||||||
| Selling, general and administrative expenses | 791 | 791 | |||||||||
| Depreciation and amortization expense | 141 | 136 | |||||||||
| (Gain) on sale of property and equipment | — | (62) | |||||||||
| Income from operations | 843 | 853 | |||||||||
| Other income (expense), net: | |||||||||||
| Interest income | 22 | 30 | |||||||||
| Interest expense | (7) | (12) | |||||||||
| Foreign currency exchange gains (losses), net | 18 | 2 | |||||||||
| Other, net | (9) | (1) | |||||||||
| Total other income (expense), net | 24 | 19 | |||||||||
| Income before provision for income taxes | 867 | 872 | |||||||||
| Provision for income taxes | (208) | (213) | |||||||||
| Income (loss) from equity method investment | 3 | 4 | |||||||||
| Net income | $ | 662 | $ | 663 | |||||||
| Basic earnings per share | $ | 1.39 | $ | 1.34 | |||||||
| Diluted earnings per share | $ | 1.39 | $ | 1.34 | |||||||
| Weighted average number of common shares outstanding - Basic | 477 | 494 | |||||||||
| Dilutive effect of shares issuable under stock-based compensation plans | — | 1 | |||||||||
| Weighted average number of common shares outstanding - Diluted | 477 | 495 | |||||||||
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(in millions, except par values) | March 31, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,504 | $ | 1,901 | |||||||
| Short-term investments | 13 | 13 | |||||||||
| Trade accounts receivable, net | 4,609 | 4,439 | |||||||||
| Other current assets | 1,709 | 1,465 | |||||||||
| Total current assets | 7,835 | 7,818 | |||||||||
| Property and equipment, net | 955 | 933 | |||||||||
| Operating lease assets, net | 539 | 573 | |||||||||
| Goodwill | 7,681 | 7,106 | |||||||||
| Intangible assets, net | 1,485 | 1,417 | |||||||||
| Deferred income tax assets, net | 853 | 967 | |||||||||
| Long-term investments | 113 | 111 | |||||||||
| Other noncurrent assets | 1,039 | 1,767 | |||||||||
| Total assets | $ | 20,500 | $ | 20,692 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 363 | $ | 308 | |||||||
| Deferred revenue | 580 | 501 | |||||||||
| Short-term debt | 33 | 33 | |||||||||
| Operating lease liabilities | 140 | 153 | |||||||||
| Accrued expenses and other current liabilities | 2,404 | 2,664 | |||||||||
| Total current liabilities | 3,520 | 3,659 | |||||||||
| Deferred revenue, noncurrent | 37 | 37 | |||||||||
| Operating lease liabilities, noncurrent | 384 | 423 | |||||||||
| Deferred income tax liabilities, net | 195 | 168 | |||||||||
| Long-term debt | 535 | 543 | |||||||||
| Other noncurrent liabilities | 761 | 847 | |||||||||
| Total liabilities | 5,432 | 5,677 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.10 par value, 15 shares authorized, none issued | — | — | |||||||||
Class A common stock, $0.01 par value, 1,000 shares authorized, 474 and 479 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 5 | 5 | |||||||||
| Additional paid-in capital | 17 | 12 | |||||||||
| Retained earnings | 15,272 | 15,158 | |||||||||
| Accumulated other comprehensive income (loss) | (226) | (160) | |||||||||
| Total stockholders’ equity | 15,068 | 15,015 | |||||||||
| Total liabilities and stockholders’ equity | $ | 20,500 | $ | 20,692 | |||||||
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
| (dollars in millions, except per share amounts) | Three Months Ended March 31, | Guidance | |||||||||||||||
| 2026 | 2025 | Full Year 2026 (1) | |||||||||||||||
| GAAP income from operations | $ | 843 | $ | 853 | |||||||||||||
(Gain) on sale of property and equipment(a) | — | (62) | |||||||||||||||
| Adjusted Income From Operations | $ | 843 | $ | 791 | |||||||||||||
| GAAP operating margin | 15.6 | % | 16.7 | % | |||||||||||||
Project Leap charges(b) | — | — | 1.0% - 1.5% | ||||||||||||||
(Gain) on sale of property and equipment(a) | — | (1.2) | — | ||||||||||||||
Adjusted Operating Margin | 15.6 | % | 15.5 | % | 16.0% - 16.2% | ||||||||||||
GAAP net income | $ | 662 | $ | 663 | |||||||||||||
Effect of adjustments to income from operations, pre-tax | — | (62) | |||||||||||||||
Non-operating foreign currency exchange (gains) losses, pre-tax(c) | (18) | (2) | |||||||||||||||
Tax effect of above adjustments(d) | 22 | 12 | |||||||||||||||
Adjusted Net Income | $ | 666 | $ | 611 | |||||||||||||
| GAAP diluted earnings per share | $ | 1.39 | $ | 1.34 | |||||||||||||
| Effect of gain on sale of property and equipment, pre-tax | — | (0.13) | — | ||||||||||||||
Non-operating foreign currency exchange (gains) losses, pre-tax(c) | (0.04) | — | (c) | ||||||||||||||
Tax effect of above adjustments(d) | 0.05 | 0.02 | (c) | ||||||||||||||
| Effect of Project Leap charges, pre-tax | — | — | $0.49 - $0.68 | ||||||||||||||
| Tax effect of Project Leap charges | — | — | ($0.13) - ($0.18) | ||||||||||||||
| Adjusted Diluted Earnings Per Share | $ | 1.40 | $ | 1.23 | $5.63 - $5.77 | ||||||||||||
(1) A full reconciliation of Adjusted Operating Margin and Adjusted Diluted Earnings Per Share guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to unusual items, net non-operating foreign currency exchange gains or losses and the tax effects of these adjustments, and such adjustments may be significant.
Notes:
(a)During the three months ended March 31, 2025, we realized a gain on the sale of an office complex in India, which was reported in "(Gain) on sale of property and equipment" on our unaudited consolidated statement of operations.
(b)In the second quarter of 2026, we introduced Project Leap, in connection with which we expect to record costs of $230 million to $320 million, with substantially all of the costs expected to be incurred in 2026. This consists of $200 million to $270 million of employee severance and other personnel related costs and approximately $30 million to $50 million of other charges. The estimates of the charges and expenditures that we expect to incur in connection with Project Leap, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, we may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with Project Leap.
(c)Non-operating foreign currency exchange gains and losses, inclusive of gains and losses related to foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in "Foreign currency exchange gains (losses), net" in our unaudited consolidated statements of operations. Non-operating foreign currency exchange gains and losses are subject to high variability and low visibility and therefore cannot be provided on a forward-
looking basis without unreasonable efforts.
(d)Presented below are the tax impacts of our non-GAAP adjustment to pre-tax income for the:
| (in millions) | Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Non-GAAP income tax benefit (expense) related to: | |||||||||||
| Gain on sale of property and equipment | $ | — | $ | (9) | |||||||
| Foreign currency exchange gains and losses | (22) | (3) | |||||||||
The effective tax rate related to non-operating foreign currency exchange gains and losses varies depending on the jurisdictions in which such income and expenses are generated and the statutory rates applicable in those jurisdictions. As such, the income tax effect of non-operating foreign currency exchange gains and losses shown in the above table may not appear proportionate to the net pre-tax foreign currency exchange gains and losses reported in our unaudited consolidated statements of operations.
Reconciliations of Net Cash
(Unaudited)
(in millions) | March 31, 2026 | December 31, 2025 | ||||||||||||
Cash and cash equivalents(a) | $ | 1,504 | $ | 1,901 | ||||||||||
| Short-term investments | 13 | 13 | ||||||||||||
| Less: | ||||||||||||||
| Short-term debt | 33 | 33 | ||||||||||||
| Long-term debt | 535 | 543 | ||||||||||||
Net cash(a) | $ | 949 | $ | 1,338 | ||||||||||
Notes:
(a)Cash and cash equivalents as of December 31, 2025 excludes $733 million of restricted cash related to our acquisition of 3Cloud which was reported in "Other noncurrent assets" on our unaudited consolidated statement of financial position.
The above tables serve to reconcile the Non-GAAP financial measures to the most directly comparable GAAP measures. Refer to the “About Non-GAAP Financial Measures and Performance Metrics” section of our press release for further information on the use of these Non-GAAP measures.
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
Revenue by Business Segment and Geography
(Unaudited)
| (dollars in millions) | Three Months Ended March 31, 2026 | ||||||||||||||||||||||
| Year over Year | |||||||||||||||||||||||
| $ | % of total | % Change | Constant Currency % Change (a) | ||||||||||||||||||||
| Revenues by Segment: | |||||||||||||||||||||||
| Health Sciences | $ | 1,579 | 29.2 | % | 0.5 | % | (0.9) | % | |||||||||||||||
Financial Services (c) | 1,644 | 30.4 | % | 12.4 | % | 10.2 | % | ||||||||||||||||
Products and Resources (c) | 1,321 | 24.4 | % | 3.4 | % | 1.1 | % | ||||||||||||||||
Communications, Media and Technology (c) | 869 | 16.0 | % | 8.1 | % | 6.5 | % | ||||||||||||||||
Total Revenues (b)(c) | $ | 5,413 | 5.8 | % | 3.9 | % | |||||||||||||||||
| Revenues by Geography: | |||||||||||||||||||||||
North America (b)(c) | $ | 4,052 | 74.9 | % | 5.1 | % | 4.9 | % | |||||||||||||||
| United Kingdom | 509 | 9.4 | % | 11.4 | % | 4.6 | % | ||||||||||||||||
| Continental Europe | 530 | 9.8 | % | 7.5 | % | (3.1) | % | ||||||||||||||||
Europe - Total | 1,039 | 19.2 | % | 9.4 | % | 0.6 | % | ||||||||||||||||
| Rest of World | 322 | 5.9 | % | 3.5 | % | 1.5 | % | ||||||||||||||||
Total Revenues (b)(c) | $ | 5,413 | 5.8 | % | 3.9 | % | |||||||||||||||||
Notes:
(a)Constant currency revenue growth is not a measure of financial performance prepared in accordance with GAAP. See “About Non-GAAP Financial Measures and Performance Metrics” section of our press release for further information.
(b)For the quarter ended March 31, 2026, revenues from our recently completed acquisition contributed approximately 90 basis points to overall revenue growth, across all segments in North America.
(c)For the quarter ended March 31, 2026, the sale of third-party products, primarily in North America, in connection with our integrated offerings strategy, contributed approximately 140 basis points to overall revenue growth. These sales contributed 1,000 basis points of growth to our Communications Media and Technology segment and 250 basis points growth to our Financial Services segment, while negatively impacting growth in our Health Sciences segment by 300 basis points.
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions) | Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 662 | $ | 663 | |||||||
| Adjustments for non-cash income and expenses | 292 | 164 | |||||||||
Changes in operating assets and liabilities, net of effects of businesses acquired | (680) | (427) | |||||||||
| Net cash provided by operating activities | 274 | 400 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (76) | (77) | |||||||||
| Proceeds from sale of property and equipment | — | 70 | |||||||||
| Payments for business combinations, net of cash acquired | (730) | — | |||||||||
| Net cash (used in) investing activities | (806) | (7) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Issuance of common stock under stock-based compensation plans | 17 | 19 | |||||||||
| Repurchases of common stock | (444) | (209) | |||||||||
| Net change in term loan borrowings and finance leases | (11) | (12) | |||||||||
Repayment of notes outstanding under the revolving credit facility | — | (300) | |||||||||
| Dividends paid | (159) | (155) | |||||||||
| Net cash (used in) financing activities | (597) | (657) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1) | 13 | |||||||||
| (Decrease) in cash, cash equivalents and restricted cash | (1,130) | (251) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 2,634 | 2,231 | |||||||||
| Cash and cash equivalents, end of period | $ | 1,504 | $ | 1,980 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION
| (in millions) | Three Months Ended March 31, | ||||||||||
| Stock Repurchases under Board of Directors' authorized stock repurchase program: | 2026 | 2025 | |||||||||
| Number of shares repurchased | 6.3 | 2.3 | |||||||||
Remaining authorized balance as of March 31, 2026 | $ | 1,491 | |||||||||
Reconciliation of Free Cash Flow Non-GAAP Financial Measure
(in millions) | Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 274 | $ | 400 | |||||||
Purchases of property and equipment | (76) | (77) | |||||||||
| Proceeds from sale of property and equipment | — | 70 | |||||||||
| Free cash flow | $ | 198 | $ | 393 | |||||||
GAAP and Adjusted Operating Margin | 15.6% GAAP EPS | $1.39 Adjusted Diluted EPS | $1.40 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. We believe our AI builder strategy, deep industry expertise and scaled partnership ecosystem uniquely position us to bridge the 'AI Velocity Gap' by helping clients convert their significant AI investments into tangible business outcomes. Q1 2026 Ravi Kumar S | Chief Executive Officer ” Revenue $5.4 billion Reported YoY é 5.8% Constant Currency YoY é 3.9% GAAP Diluted EPS | $1.39 $4.1 $1 .0 $0.3 Rest of World 3.5% Revenue by Geography ($ In billions) Reported YoY | Constant Currency YoY Q1 2026 Cash Flow Cash Flow From Operations $274M Free Cash Flow $198M Q1 2026 Capital Return Dividends $159M Share Repurchases $444M $0.33/share Revenue by Segment ($ In billions) Reported YoY | Constant Currency YoY Europe North America 1.5% $1 .6 $0.9 $1 .3 $1 .6 Products & Resources Health Sciences Financial Services Communications, Media & Technology 9.4% 0.6% 5.1% 4.9% 8.1% 6.5%3.4% 1.1% 12.4% 10.2%0.5% 0.9% Total Employees 357,600 ” +6,000 QoQ +21,300 YoY Voluntary Attrition - Tech Services1 (Trailing 12-Month) 12.3% é é é é é é é é é é é Adjusted Diluted EPS | $1.40 Employee Metrics Adjusted Operating Margin | 15.6% é é é For additional details on revenue and growth drivers and non-GAAP financial reconciliations refer to Cognizant's 2026 first quarter earnings release issued on April 29, 2026, which accompanies this presentation and is available at investors.cognizant.com. 1 During the first quarter of 2026, we modified our definition of Voluntary Attrition - Tech Services to exclude certain categories of negotiated separations. é Company Recognition Exhibit 99.2
Exhibit 99.3 First Quarter 2026 Financial Results and Highlights © 2026 Cognizant April 29, 2026
© 2026 Cognizant 1 Forward-looking statements This earnings supplement includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, competitive position and opportunities in the marketplace, investment in and growth of our business, the pace and magnitude of change and client needs related to generative AI, the effectiveness of our recruiting and talent efforts and related costs, labor market trends, the anticipated amount of capital to be returned to shareholders and our anticipated financial performance, matters related to Project Leap, expectations related to our pending acquisition of Astreya, and other statements regarding matters that are not historical facts. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, our ability to successfully use AI-based technologies and the impact those technologies may have on the demand and terms for our services, the competitive marketplace for talent and its impact on employee recruitment and retention, legal, reputational and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration, trade and taxes and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
© 2026 Cognizant 2 $400M $274M Q1 '25 Q1 '26 Results Summary: Q1 2026 1 See “About Non-GAAP Financial Measures and Performance Metrics” at the end of this earnings supplement for more information and reconciliations to the most directly comparable GAAP financial measures, as applicable. Revenue Increase of 5.8% Y/Y as reported, and an increase of 3.9% Y/Y in constant currency1 GAAP and Adjusted Operating Margin1 Cash Flow $5,115M $5,413M Q1 '25 Q1 '26 16.7% 15.6% Q1 '25 Q1 '26 15.5% 15.6% Q1 '25 Q1 '26 $393M $198M Q1 '25 Q1 '26 $1.34 $1.39 Q1 '25 Q1 '26 $1.23 $1.40 Q1 '25 Q1 '26 Adjusted Operating Margin1 GAAP Diluted EPS Adjusted Diluted EPS1 Operating Cash Flow Free Cash Flow1 GAAP Operating Margin Adjusted Operating Margin1 Diluted Earnings Per Share (EPS)
© 2026 Cognizant 3 Q1 2026 highlights Adjusted Operating Margin1 Revenue in upper half of guidance range 1 Large deals and mega deals are defined as deals with a total contract value of $100 million or greater and $500 million or greater, respectively. 2 Estimated based on company's sampling methodology Over 5,000 AI engagements Nearly 40% of code is AI assisted2 Seven large deals1 signed including one mega deal; over 70% growth in TCV of large deals 21% quarterly bookings growth; 11% TTM bookings growth Financial Services growth of 12% y/y and 10% y/y in constant currency
© 2026 Cognizant 4 Full-year 2026 and Q2 2026 Guidance1 1 Guidance is as of April 29, 2026 2 A full reconciliation of Adjusted Operating Margin, Adjusted Diluted EPS and Adjusted effective tax rate guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts as we are unable to provide reconciling information with respect to unusual items, net non-operating foreign currency exchange gains or losses, and the tax effects of these adjustments. See “About Non-GAAP Financial Measures and Performance Metrics” for more information, the definition of Adjusted effective tax rate as well as a partial reconciliation to the most directly comparable GAAP financial measures at the end of this earnings supplement. Q2 2026 Guidance Revenue ~$5.45 to ~$5.52B 3.8% to 5.3% Y/Y or 3.2% to 4.7% Y/Y CC Includes ~150 bps of inorganic contribution 2026 Guidance Assumptions Revenue ~$22.11B to ~$22.64B 4.8% to 7.3% Y/Y or 4.0% to 6.5% Y/Y CC Includes ~150 bps of inorganic contribution Adjusted Operating Margin2 16.0% to 16.2% 20 to 40 basis points Y/Y expansion Adjusted effective tax rate2 25% to 26% Share Count 473M Adjusted Diluted EPS2 $5.63 to $5.77 7% to 9% Y/Y
© 2026 Cognizant 5 $5,11 5 $5,245 $5,41 5 $5,333 $5,41 3 $1 .23 $1 .31 $1 .39 $1 .35 $1 .40 Revenue Adjusted Diluted E PS Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 $ in millions except per share amounts Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Revenue Y/Y1 7.5% 8.1% 7.4% 4.9% 5.8% Revenue Y/Y CC1 8.2% 7.2% 6.5% 3.8% 3.9% GAAP Operating Margin 16.7% 15.6% 16.0% 16.0% 15.6% Adjusted Operating Margin 15.5% 15.6% 16.0% 16.0% 15.6% GAAP Diluted EPS2 $1.34 $1.31 $0.56 $1.34 $1.39 Adjusted Diluted EPS $1.23 $1.31 $1.39 $1.35 $1.40 Revenue, Operating Margin and EPS 1 1 Revenue from our acquisitions of Belcan and Thirdera contributed approximately 400 basis points to YoY growth in Q1 2025. Revenue from Belcan contributed approximately 400 basis points and 250 basis points to YoY growth in Q2 and Q3 2025, respectively. Revenue from our acquisition of 3Cloud contributed approximately 90 basis points to YoY growth in Q1 2026. 2 Q3 2025 GAAP Diluted EPS reflects the $0.80 impact from a one-time, non-cash income tax expense. See “About Non-GAAP Financial Measures and Performance Metrics” at the end of this earnings supplement for more information.
© 2026 Cognizant 6 $4,052 $1 ,039 $322 $1 ,644 $869 $1 ,321 $1 ,579 Revenue Performance: Q1 2026 Products & Resources Communications, Media & Technology Health Sciences Financial Services North America Europe Rest of World Segments $ in millions Geography $ in millions +8.1% Y/Y +6.5% Y/Y CC +3.4% Y/Y +1.1% Y/Y CC +0.5% Y/Y (0.9%) Y/Y CC +12.4% Y/Y +10.2% Y/Y CC +9.4% Y/Y +0.6% Y/Y CC +3.5% Y/Y +1.5% Y/Y CC +5.1% Y/Y +4.9% Y/Y CC The sale of third-party products, primarily in North America, in connection with our integrated offerings strategy, contributed approximately 140 basis points to overall revenue growth. These sales contributed 1,000 basis points of growth to our Communications Media and Technology segment and 250 basis points growth to our Financial Services segment, while negatively impacting growth in our Health Sciences segment by 300 basis points
© 2026 Cognizant 7 $1 ,311 $225 $43 Health Sciences North America Europe Rest of World +34.4% Y/Y +30.7% Y/Y CC +7.7% Y/Y (2.5%) Y/Y CC (1.4%) Y/Y and Y/Y CC Revenue $ in millions Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Y/Y 10.9% 6.2% 5.9% 5.2% 0.5% Y/Y CC 11.4% 5.3% 5.1% 4.2% (0.9%) $1 ,571 $1 ,551 $1 ,604 $1 ,621 $1 ,579 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Change in Revenue $ in millions Q1 2026 Geography
© 2026 Cognizant 8 $1 ,1 76 $337 $1 31 Financial Services North America Europe Rest of World Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Y/Y 5.6% 6.9% 6.2% 10.5% 12.4% Y/Y CC 6.5% 6.0% 5.4% 9.3% 10.2% +10.1% Y/Y +7.7% Y/Y CC +12.3% Y/Y +3.7% Y/Y CC Revenue Change in Revenue $ in millions $ in millions Q1 2026 Geography +12.8% Y/Y +12.3% Y/Y CC $1 ,462 $1 ,547 $1 ,578 $1 ,586 $1 ,644 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26
© 2026 Cognizant 9 $91 6 $325 $80 North America Europe Products & Resources +0.5% Y/Y +0.3% Y/Y CC +12.1% Y/Y +3.3% Y/Y CC +3.9% Y/Y +2.0% Y/Y CC Rest of World Revenue $ in millions Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Y/Y 12.8% 16.0% 12.6% 1.8% 3.4% Y/Y CC 13.6% 14.7% 11.4% 0.3% 1.1% $1 ,278 $1 ,306 $1 ,383 $1 ,31 8 $1 ,321 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Change in Revenue1 $ in millions Q1 2026 Geography 1 Revenue from recently completed acquisitions contributed 15, 16 and 9 percentage points to year-over-year revenue growth in Q1 2025, Q2 2025 and Q3 2025, respectively.
© 2026 Cognizant 10 +13.9% Y/Y +13.7% Y/Y CC $804 $841 $850 $808 $869 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 $649 $1 52 $68 Communications, Media & Technology North America Rest of World (18.1%) Y/Y (19.1%) Y/Y CC +0.7% Y/Y (6.6%) Y/Y CC Europe Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Y/Y (2.7%) 3.1% 4.2% (0.4%) 8.1% Y/Y CC (1.9%) 2.2% 3.6% (1.2%) 6.5% Change in Revenue Revenue $ in millions $ in millions Q1 2026 Geography
© 2026 Cognizant 11 $26.7 $27.8 $27.5 $28.4 $29.6 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Trailing Twelve Month Bookings1 Trailing twelve month bookings of $29.6 billion increased 11% year-over-year and represented a book-to-bill of 1.4x Q1 2026 bookings increased 21% year-over-year $ in billions 1 See “About Non-GAAP Financial Measures and Performance Metrics” at the end of this earnings supplement for more information.
© 2026 Cognizant 12 Employee Metrics 336.3 343.8 349.8 351 .6 357.6 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Trailing 12-Month Voluntary Attrition - Tech Services1 12.0% 12.6% 12.6% 12.3% 12.3% Additional Employee Metrics Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Blended Utilization, Excluding Trainees 85% 85% 85% 83% 85% Utilization Headcount in thousands 1 In the first quarter of 2026, we modified our definition of 'Voluntary Attrition - Tech Services' to exclude certain categories of negotiated separations. Prior periods disclosed have been recast to conform to the new definition. Under our previous definition, Q1 2026 trailing 12-month Voluntary Attrition - Tech Services was 14.0%.
© 2026 Cognizant 13 $600 $61 0 $61 4 $1 ,61 5 $730 $605 $1 ,378 $1 ,61 3 FY 2024 FY 2025 Trailing 1 2 Months Acquisitions Share Repurchases $1 55 $1 53 $1 51 $1 51 $1 59 $730 $209 $368 $463 $338 $444 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Cash Flow, Balance Sheet & Capital Allocation Q1 '251 Q2 '25 Q3 '25 Q4 '252 Q1 '26 Operating Cash Flow $400 $398 $1,227 $858 $274 Free Cash Flow $393 $331 $1,160 $781 $198 Cash and Short-Term Investments $1,992 $1,808 $2,354 $1,914 $1,517 Total Debt $600 $592 $584 $576 $568 Annual Quarterly Dividends $ in millions $ in millions 1 Q1 2025 Free Cash Flow includes the positive impact of $70 million from the proceeds on sale of property and equipment. 2 Q4 2025 Cash and Short-Term Investments excludes $733 million of restricted cash related to our acquisition of 3Cloud.
APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
© 2026 Cognizant 15 Non-GAAP Financial Measures To supplement our financial results presented in accordance with GAAP, this earnings supplement includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Operating Margin, Adjusted Diluted EPS, free cash flow, constant currency revenue growth and Adjusted effective tax rate. These non- GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of our non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated. Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations exclude unusual items, such as the gain on sale of property and equipment in 2025. Our non-GAAP financial measure Adjusted Diluted EPS excludes unusual items, such as the one-time income tax expense related to the enactment of the OBBBA and the gain on sale of property and equipment, and net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments. The income tax impact of each item excluded from Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Free cash flow is defined as cash flows from operating activities plus proceeds from sale of property and equipment, net of purchases of property and equipment. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period’s foreign currency exchange rates measured against the comparative period's reported revenues. Adjusted effective tax rate reflects a tax rate commensurate with our non-GAAP Adjusted EPS. Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced transparency into our operating results. For our internal management reporting and budgeting purposes, we use various GAAP and non-GAAP financial measures for financial and operational decision-making, to evaluate period-to-period comparisons, to determine portions of the compensation for our executive officers and for making comparisons of our operating results to those of our competitors. Accordingly, we believe that the presentation of our non-GAAP measures, which exclude certain costs, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations. A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and may exclude costs that are recurring such as our net non-operating foreign currency exchange gains or losses. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from our non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures. Performance Metrics Bookings are defined as total contract value (or TCV) of new contracts, including new contract sales as well as renewals and expansions of existing contracts. Bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large contracts. Our book-to-bill ratio is defined as bookings for the trailing twelve months divided by revenue for the same period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. The extent and timing of conversion of bookings to revenues may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and contract modifications, including terminations, over the lifetime of a contract. The majority of our contracts are terminable by the client on short notice often without penalty, and some without notice. We do not update our bookings for subsequent terminations, reductions or foreign currency exchange rate fluctuations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenues. However, management believes that it is a key indicator of potential future revenues and provides a useful indicator of the volume of our business over time. About Non-GAAP Financial Measures and Performance Metrics
© 2026 Cognizant 16 Reconciliations of Non-GAAP Financial Measures Please refer to page 17 and 18 of this earnings supplement for corresponding Non-GAAP notes. (in millions, except per share amounts) Three Months Ended: Mar 31, 2025 Jun 30, 2025 Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Guidance Full Year 2026(1) GAAP income from operations $ 853 $ 817 $ 866 $ 853 $ 843 (Gain) on sale of property and equipment(a) (62) — — — — Adjusted income from operations $ 791 $ 817 $ 866 $ 853 $ 843 GAAP operating margin 16.7 % 15.6 % 16.0 % 16.0 % 15.6 % Project Leap charges(b) — — — — — 1.0% - 1.5% (Gain) on sale of property and equipment(a) (1.2) — — — — — Adjusted operating margin 15.5 % 15.6 % 16.0 % 16.0 % 15.6 % 16.0% - 16.2% GAAP diluted earnings per share $ 1.34 $ 1.31 $ 0.56 $ 1.34 $ 1.39 Effect of above adjustments, pre-tax (0.13) — — — — — Effect of non-operating foreign currency exchange (gains) loss, pre-tax(c) — (0.01) (0.01) (0.01) (0.04) (c) Tax effect of above adjustments(d) 0.02 0.01 0.04 0.02 0.05 (c) One-time income tax expense related to the enactment of the OBBBA(e) — — 0.80 — — — Effect of Project Leap charges, pre-tax — — — — — $0.49 - $0.68 Tax effect of Project Leap charges — — — — — ($0.13) - ($0.18) Adjusted diluted earnings per share $ 1.23 $ 1.31 $ 1.39 $ 1.35 $ 1.40 $5.63 - $5.77 (1) A full reconciliation of Adjusted Operating Margin and Adjusted Diluted Earnings Per Share guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to unusual items, net non-operating foreign currency exchange gains or losses and the tax effects of these adjustments, and such adjustments may be significant.
© 2026 Cognizant 17 Reconciliations of Non-GAAP Financial Measures Notes: (a) During the three months ended March 31, 2025, we realized a gain of $62 million on the sale of an office complex in India, which was reported in "(Gain) on sale of property and equipment" on our unaudited consolidated statement of operations. (b) In the second quarter of 2026, we introduced Project Leap, in connection with which we expect to record costs of $230 million to $320 million, with substantially all of the costs expected to be incurred in 2026. This consists of $200 million to $270 million of employee severance and other personnel related costs and approximately $30 million to $50 million of other charges. The estimates of the charges and expenditures that we expect to incur in connection with Project Leap, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, we may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with Project Leap. (c) Non-operating foreign currency exchange gains and losses, inclusive of gains and losses related to foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in "Foreign currency exchange gains (losses), net" in our unaudited consolidated statements of operations. Non-operating foreign currency exchange gains and losses are subject to high variability and low visibility and therefore cannot be provided on a forward-looking basis without unreasonable efforts. 2025 2026 Three months ended: Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Non-GAAP income tax benefit (expense) related to: Gain on sale of property and equipment $ (9) $ — $ — $ — $ — Foreign currency exchange gain and losses (3) (7) (15) (8) (22) (d) Presented below are the tax impacts of our non-GAAP adjustments to pre-tax income: The effective tax rate related to non-operating foreign currency exchange gains and losses varies depending on the jurisdictions in which such income and expenses are generated and the statutory rates applicable in those jurisdictions. As such, the income tax effect of non-operating foreign currency exchange gains and losses shown in the above table may not appear proportionate to the net pre-tax foreign currency exchange gains and losses reported in our unaudited consolidated statements of operations. (e) In July 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States, which, among other provisions, repealed the requirement to capitalize U.S. research and experimental ("R&E") costs. As a result, we do not believe it is more likely than not that we will realize our deferred tax asset of $390 million related to R&E costs capitalized outside the United States. These amounts would have otherwise been available to offset certain future U.S. taxes on our non-U.S. earnings, which, as a result of this repeal, we no longer project to be applicable to us. Therefore, in the third quarter of 2025, we recorded a one-time, non-cash income tax expense of $390 million.
© 2026 Cognizant 18 Reconciliations of Non-GAAP Financial Measures Reconciliation of free cash flow Three Months Ended (in millions) Mar 31, 2025 Jun 30, 2025 Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Net cash provided by operating activities $ 400 $ 398 $ 1,227 $ 858 $ 274 Purchases of property and equipment (77) (67) (67) (77) (76) Proceeds from sale of property and equipment 70 — — — — Free cash flow $ 393 $ 331 $ 1,160 $ 781 $ 198 Adjusted Effective Tax Rate Reconciliation Guidance FY 2026 GAAP effective tax rate Effect of non-operating foreign currency exchange (gains) losses (c) (c) Effect of Project Leap charges (b) Adjusted effective tax rate 25% - 26% The note referenced in the above table are located on page 17. Net Interest FY 2024 Guidance FY 2025 Interest income $22 ~$115 Interest expense (7) (~50) Net Interest Income $15 ~ Adjusted Net Income Reconciliation (in millions) Q3 2025 YTD 2025 GAAP net income $ 274 $ 1,582 Non-operating foreign currency exchange gains / losses (c) 11 12 (Gain) on sale of property and equipment (a) — (53) One-time income tax expense related to the enactment of the OBBBA(e) 390 390 Adjusted Net Income $ 675 $ 1,931
FAQ
How did Cognizant (CTSH) perform financially in Q1 2026?
Cognizant reported Q1 2026 revenue of $5.413 billion, up 5.8% year-over-year, or 3.9% in constant currency. GAAP EPS was $1.39 and adjusted diluted EPS was $1.40, higher than $1.23 a year earlier.
What is Cognizant’s Project Leap and its expected financial impact?
Project Leap is a transformation program to streamline operations, invest in AI, and reskill employees. For 2026, Cognizant expects $200–$300 million in savings and $230–$320 million of related costs, mainly severance and other charges, largely incurred in 2026.
What guidance did Cognizant (CTSH) give for full-year 2026?
For 2026, Cognizant expects revenue of $22.11–$22.64 billion, implying 4.8–7.3% growth, or 4.0–6.5% in constant currency. It forecasts adjusted operating margin of 16.0–16.2% and adjusted diluted EPS of $5.63–$5.77, or 7–9% growth.
How strong were Cognizant’s bookings and large deals in Q1 2026?
Trailing 12‑month bookings reached $29.6 billion, up 11% year-over-year, for a roughly 1.4x book‑to‑bill ratio. Q1 2026 bookings rose 21%, including seven large deals of at least $100 million TCV and one mega deal of at least $500 million.
How is Cognizant’s segment and geographic revenue mix trending?
In Q1 2026, Financial Services revenue grew 12.4% year-over-year, while Health Sciences grew 0.5%. North America generated $4.052 billion (up 5.1%), Europe $1.039 billion (up 9.4%), and Rest of World $322 million (up 3.5%).