Cognizant Reports Q2 2026 Financial Results with Revenue Growth and Margin Expansion
Cognizant reported second-quarter financial results for 2026, showing a revenue of $5.48 billion, representing a year-over-year increase of 4.5%. The company experienced strong growth in its Financial Services segment, which saw a 12% rise compared to the previous year. Cognizant also noted an operating margin improvement and increased GAAP EPS by 3.8%, with adjusted earnings per share rising slightly more at 4.6%. Despite challenges such as declining second-quarter bookings of 6% year-over-year, trailing twelve-month bookings reached $29.1 billion, indicating a book-to-bill ratio above one. The company revised its revenue growth guidance for the remainder of 2026 to between 4.0% and 5.5%, while maintaining adjusted operating margin expectations at 16.0% to 16.2%. Cognizant also increased its Adjusted Diluted EPS forecast, projecting a range from $5.70 to $5.82 for the year. Capital allocation efforts included significant share repurchases and strategic acquisitions aligned with their AI builder strategy. Cognizant's CEO highlighted continued momentum in organic revenue growth and confidence in client satisfaction due to its focus on industry expertise combined with engineering capabilities, which is helping clients scale up from AI experimentation.
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Topics: guidance_update operating_margin revenue_growth share_repurchases