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Cognizant (CTSH - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis information technology consulting and outsourcing firm is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +5%.

Revenues are expected to be $5.65 billion, up 4.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.38% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Cognizant?For Cognizant, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.98%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Cognizant will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Cognizant would post earnings of $1.38 per share when it actually produced earnings of $1.37, delivering a surprise of -0.72%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Cognizant doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsBigBear.ai Holdings, Inc. (BBAI - Free Report) , another stock in the Zacks Computers - IT Services industry, is expected to report loss per share of $0.06 for the quarter ended September 2026. This estimate points to a year-over-year change of +14.3%. Revenues for the quarter are expected to be $38.94 million, up 17.5% from the year-ago quarter.

The consensus EPS estimate for BigBear.ai has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -9.09%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that BigBear.ai will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Advances Cognizant's AI Builder strategy, helping clients in Australia and New Zealand turn AI investment into enterprise value across their SAP landscapes.
Is expected to combine DyFlex's deep SAP advisory, implementation and managed services capabilities, including strong depth in SAP Public Cloud, with Cognizant's AI assets, industry expertise and global delivery scale.
Is expected to add a multi-award-winning SAP Platinum Partner with particular experience in mining and resources, energy and utilities, manufacturing, logistics, the public sector and the mid-market.

, /PRNewswire/ -- Cognizant (Nasdaq: CTSH) today announced that it has entered into a definitive agreement to acquire DyFlex Solutions, a leading AI-led SAP transformation firm. Headquartered in Australia, DyFlex is a multi-award-winning SAP Platinum Partner delivering advisory, consulting, implementation and managed services across the SAP ecosystem in Australia and New Zealand. The proposed transaction is expected to strengthen Cognizant's enterprise platform, AI and SAP capabilities in the region, and its domain expertise in mining and resources, energy and utilities, manufacturing, logistics, the public sector and the mid-market sector.

Founded in 2011, DyFlex has grown to over 300 people, making it one of the leading employers of SAP talent across Australia and New Zealand, with multiple office locations in the region and a delivery presence in the Philippines. It specialises in SAP transformation, including AI-led process advisory, across finance, digital supply chain, asset maintenance, human capital management, and data and analytics, spanning the full SAP portfolio with award-winning capability across SAP Public and Private Cloud. Its work is supported by proprietary delivery methods, accelerators and reusable assets, which DyFlex is increasingly enhancing with AI.

"DyFlex brings deep SAP consulting capabilities that are key to reimagining SaaS, modernising clients' business landscapes and driving operational performance," said Roshan Subudhi, SVP and Head of Intelligent Enterprise Platforms at Cognizant. "This proposed acquisition would bring together DyFlex's SAP expertise with Cognizant's Frontier and Autonomous Enterprise capabilities and global delivery at scale, helping clients derive greater value from AI across their business."

Following completion of the proposed transaction, Cognizant expects to combine DyFlex's regional SAP expertise and proprietary accelerators with its global industry experience and AI platforms, including Neuro AI Enterprise Core, the Cognizant SAP Agentic AI Platform and Frontier offerings. Together, the companies aim to help clients in Australia and New Zealand move beyond isolated AI experiments to production-ready AI and agentic systems across their SAP environments, driving towards the Autonomous Enterprise.

"Clients across Australia and New Zealand are seeking practical pathways to modernise core platforms while adopting cloud, data and AI capabilities," said Carla Ramchand, Managing Director ANZ at Cognizant. "This proposed acquisition would bring DyFlex's deep local SAP talent and strong understanding of Australia's major industries together with Cognizant's AI capabilities and global scale. For DyFlex's clients and the organisations we look forward to working with, it would mean the trusted people they know today, with even more ways to accelerate their transformation ambitions."

"DyFlex has grown by building enduring relationships with our clients, investing in our great people and developing deep expertise across our core industries and the SAP ecosystem," said Evan Mantis, Chief Executive Officer of DyFlex. "Joining Cognizant would be an exciting next chapter for our clients and colleagues. Our clients would continue to work with the people and expertise they trust, backed by Cognizant's global reach, industry experience and AI capabilities to help them go further, faster. We look forward to working together to enhance our offerings to existing clients."

The transaction is expected to close in the first quarter of 2027, subject to required regulatory approvals and the satisfaction of other customary closing conditions. Until closing, Cognizant and DyFlex will continue to operate as separate businesses. Financial details were not disclosed.

About Cognizant
Cognizant 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.ai or @cognizant.

About DyFlex
DyFlex is an Australia-headquartered, multi-award-winning SAP Platinum Partner and a leading independent pure-play SAP partner in Australia and New Zealand, providing advisory, consultancy, implementation and managed services across the SAP solution set. The company operates across Australia and New Zealand, with a significant presence on Australia's east and west coasts and delivery support in the Philippines, and has experience in sectors including mining, utilities, energy and the public sector.

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 the anticipated benefits of the proposed transaction, including anticipated benefits relating to synergies, new business opportunities, and growth; advancement of Cognizant's AI Builder strategy and expansion of its industry capabilities in Australia and New Zealand; the expected timing of the transaction closing; the combined company's plans, objectives, expectations, and intentions; anticipated enhancement of client offerings and continuity of existing client relationships; and other statements 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 the risk that the expected benefits from the transaction may not be fully realized or may take longer than anticipated to be realized; disruption to the parties' businesses as a result of the announcement and pendency of the transaction; the ability to obtain required approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect us after the closing of the transaction or adversely affect the expected benefits of the transaction; reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the transaction; the failure of the closing conditions in the transaction agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; risks related to management and oversight of the expanded business and operations of Cognizant following the transaction; the risk that combining DyFlex's business and operations into Cognizant will be more costly or difficult than expected, or that we are otherwise unable to successfully integrate DyFlex's businesses with our own, including as a result of unexpected factors or events; and general competitive, economic, political and market conditions and other factors that may affect our future results or that of DyFlex, including the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, our ability to successfully use AI-based technologies, legal, reputational and financial risks resulting from cyberattacks, and changes in the regulatory environment, including with respect to immigration and taxes. Additional factors which could affect future results are 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.

For more information, contact:

Investor Relations

Corporate Communications

Europe / APAC Media

Tyler Scott, SVP, Investor
Relations

Jeff DeMarrais, SVP, Chief
Communications Officer

Sarah Douglas, Head of
Communications EMEA & APJ

[email protected]

[email protected]

[email protected]

SOURCE Cognizant Technology Solutions

Cognizant Logo

Google Cloud Logo Initiative establishes new Gemini Frontier Capability Group, dedicating more than 18,000 engineers to help drive AI adoption for global enterprises. More than 55,000 associates completed Build with Gemini, the largest Gemini partner workshop held to date, part of a shared commitment to scale client execution through Cognizant's Frontier Certified Engineers. , /PRNewswire/ -- Cognizant (Nasdaq: CTSH) and Google Cloud today announced a significant expansion of their partnership to accelerate the adoption of agentic AI, including a new Gemini Frontier Capability Group. The group brings together a dedicated global workforce that pairs Google's full-stack, enterprise-ready AI platform with Cognizant's domain, industry and engineering expertise as an AI Builder.

Backed by more than 18,000 dedicated Cognizant associates, the new group represents a substantial joint investment and builds on the momentum created by Cognizant's dedicated Gemini practice launched in April 2026. The new group is designed to bridge the path from pilot to production, equipping enterprises with the ability to safely deploy resilient, enterprise-grade agents that can help drive measurable business value.

"Establishing our dedicated Gemini Frontier Capability Group lets our best frontier engineering talent focus entirely on getting frontier AI into production for clients," said Ravi Kumar S, CEO of Cognizant. "Our Build with Gemini workshop gave over 55,000 associates that experience directly, earning them tangible skills on one of the world's most advanced AI platforms, and this new group is where that experience goes to work every day."

"Deploying AI agents at scale requires trusted partners with deep architectural and integration expertise," said Thomas Kurian, chief executive officer, Google Cloud. "Cognizant's dedicated Frontier Capability Group and their skilling initiative for tens of thousands of engineers on Gemini will help our joint customers accelerate the adoption of autonomous agents throughout the enterprise."

Introducing the Gemini Frontier Capability Group

Designed to meet surging enterprise demand for scaled AI execution, the group aims to deliver production-grade, AI solutions designed to drive business outcomes for global enterprises by leveraging Gemini, Google Cloud's AI platform for building, governing, and deploying agents. The group will initially concentrate its engineering capabilities across legacy modernization, developer experience, autonomous business process agentification and frontier cyber defense.

To operationalize these capabilities, the group plans to deploy standardized, security-first agentic architecture built on the Model Context Protocol (MCP) and fortified by Google Cloud's Model Armor. These trusted frameworks are expected to power a new suite of collaborative, production-ready enterprise solutions, including Cognizant's Catalog Support Agent (CSA) for retail, the Neuro® San-orchestrated Healthcare Agentic Marketplace, and multi-agent Order-to-Cash (O2C) workflows for manufacturing.

Scaling outcomes with Frontier Certified Engineers

Underpinning the group is a shared commitment by Google Cloud and Cognizant to scale client execution through Frontier Certified Engineers. One early proof point shows what this looks like in practice: by integrating Gemini AI models across its software development lifecycle, Cognizant helped a leading retailer achieve a 40% increase in developer productivity, reduce time-to-market by 30%, and realize a 35% cost savings, underscoring the transformative potential of AI-driven software engineering.

As part of Cognizant's frontier certification skills drive, the company recently concluded the Build with Gemini workshop with Google Cloud, where Cognizant associates built AI agents and applications while earning Gemini skills credentials. Completed by more than 55,000 Cognizant associates, it is the largest single Gemini partner workshop held to date, representing a meaningful step in building Cognizant's frontier-certified workforce.

Cognizant is also applying Gemini internally at scale. As announced in July, the company is deploying Gemini to 100,000 associates this year, with plans to scale up to 200,000, and continues to increase its certification commitment for professionals on the platform.

About Cognizant
Cognizant (Nasdaq: CTSH) is an AI Builder and technology services provider, bridging the gap 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, drive tangible outcomes and keep global enterprises ahead in a fast-changing world. See how at www.cognizant.ai or @cognizant. 

About Google Cloud
Google Cloud offers a powerful, optimized AI stack — including AI infrastructure, leading models like Gemini, data management capabilities, multicloud security solutions, developer tools and platform, as well as agents and applications — that enables organizations to transform their business for the Agentic Era. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology partner.

Cognizant media contacts:

Google Cloud media contact:

SOURCE Cognizant Technology Solutions

Five-year agreement will support selected Gilead technology programs

, /PRNewswire/ -- Cognizant announced a five-year extension of its work with Gilead Sciences, a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades. Under the agreement, Cognizant will support Gilead's continued development of DevOps capabilities and the responsible application of agentic AI tools across selected technology programs.

Cognizant is an AI Builder company www.cognizant.ai Cognizant will apply its life sciences and technology experience to support Gilead's development and operations environment. The work is expected to focus on practical use cases intended to simplify processes, improve delivery and help Gilead's teams execute priority technology programs more efficiently.

The agreement follows more than a decade of work in which Cognizant has supported elements of Gilead's global IT infrastructure, platforms, applications and advanced analytics. The updated scope will provide additional support for selected DevOps and AI-enabled capabilities as Gilead continues to strengthen the technology foundations that underpin its business and scientific priorities.

"Our focus is on giving our teams reliable, efficient technology that helps them move important work forward," said Anna Berg Asberg, Global CIO, Gilead. "This agreement provides additional support as we strengthen our DevOps capabilities and evaluate practical, responsible uses of AI across our technology environment—all in service of our broader mission to deliver for patients."

"We value the opportunity to continue supporting Gilead's technology priorities," said Surya Gummadi, President, Americas, Cognizant. "Our work will bring together life sciences experience, DevOps capabilities and AI tools to help Gilead improve delivery across selected programs."

"This agreement allows Cognizant to apply its technology capabilities and life sciences experience in support of Gilead's priorities," said Mohammad Haque, Global Head of Intelligent Enterprise Platforms & Large Deals, Cognizant. "The work will focus on practical tools and approaches designed to support operational efficiency and program execution."

About Cognizant
Cognizant 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.ai or @cognizant.

For more information, contact:

Natalie Steffen  
[email protected]

SOURCE Cognizant Technology Solutions Corporation

Also from this source

New business unit designed to deliver enterprise-grade AI transformation to emerging enterprises that generate $1 billion to $5 billion in annual revenue, building toward Global 2000 scale, through a dedicated, right-sized operating model built for speed

, /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading AI builder and technology services provider, today announced the launch of Cognizant Activate, a new business unit designed to help emerging enterprises harness AI and accelerate transformation. Cognizant Activate brings the depth of Cognizant's AI Builder capability, proven with the world's largest companies, together with a purpose-built operating model tailored to the speed, priorities and decision-making dynamics of emerging enterprises.

Cognizant is an AI Builder company www.cognizant.ai Emerging enterprises with high growth face many of the same pressures as large enterprises, including legacy technology, rising cybersecurity risk and the need to adopt AI ahead of competitors, but they require solutions that are faster to deploy and right-sized for their scale.

Cognizant Activate is expected to deliver platform-aligned, pre-configured solution kits spanning data and AI, cybersecurity, enterprise applications, cloud modernization and managed services. The business unit will operate with vertically integrated teams and a single engagement lead accountable from the first conversation through delivery. It will launch with an initial focus on financial services, healthcare, manufacturing and retail/CPG sectors, where Cognizant has deep domain expertise and an established presence serving emerging enterprises. Cognizant Activate will also draw on Cognizant's ecosystem partnerships to accelerate time-to-value for clients.

"The companies shaping tomorrow's economy are moving fast and thinking boldly, and they need a partner who will treat their transformation as consequential, not incremental," said Ravi Kumar S, Chief Executive Officer of Cognizant. "Cognizant Activate brings the same AI Builder capability that is helping to transform some of the world's largest enterprises to emerging enterprises, right-sized for their speed and scale. This is how our clients activate growth with AI."

Cognizant Activate is built around the idea that emerging enterprises aren't looking for a scaled-down version of an enterprise engagement. They want a partner that can build AI into how they operate today, not add it as a future roadmap item. Cognizant's approach combines pre-built AI accelerators, compressed implementation timelines and commercial models designed for high-growth economics.

"Emerging enterprises with high growth want enterprise-grade capability without enterprise-level complexity and cost," said Mohammad Haque, Global Head of Intelligent Enterprise Platforms and Large Deals of Cognizant. "Cognizant Activate gives them access to our global delivery network, platform certifications and decades of industry expertise, delivered through a model built specifically for their speed and ambition."

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 companies ahead in a fast-changing world. See how at www.cognizant.ai or @cognizant.

For more information, contact:
Katrina Cheung
[email protected]

SOURCE Cognizant Technology Solutions Corporation

Big Buybacks: 3 Large Caps Exceed 5% Repurchase PowerCognizant Technology Solutions NASDAQ: CTSH CFO Jatin Dalal said the IT services industry’s prolonged period of slow growth reflects both secular pressures from artificial intelligence and a broader lack of discretionary spending across several end markets.

Speaking at a Citi fireside chat hosted by IT services analyst Bryan Keane, Dalal said banking, financial services and insurance remained a notable exception. Cognizant posted double-digit growth in BFSI during the second quarter, he said, despite AI-related productivity gains and other pressures affecting the industry.

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AI revolution: 3 stocks set to soar as technology evolves“It is some amount of secular pressure, but it is also largely the lack of discretionary spend in the rest of the sector,” Dalal said.

Demand Varies by Industry Dalal described demand conditions as broadly unchanged from the company’s recent earnings-call commentary, though performance differs significantly by vertical. In communications, media and technology, he said technology customers continue to invest in their futures and have maintained a strong discretionary-spending environment.

However, aggregate CMT growth has been held back by communications-sector trends and the effect of a particular customer that weighed on Cognizant’s first-half results. Dalal said that customer’s situation has stabilized and should no longer create an additional negative headwind, potentially improving the outlook for the segment in coming quarters.

He said Cognizant does not currently see similar customer spending decisions on the horizon. Elsewhere, products and resources customers are working through supply-chain effects tied to geopolitical conditions, while healthcare is navigating policy-related challenges and opportunities, according to Dalal.

AI Reshaping Delivery Models and Competition Dalal said AI is changing the basis of competition for large IT services contracts. Rather than simply focusing on whether an incumbent provider is displaced by a new competitor, clients are increasingly evaluating whether providers understand the use case for AI and can demonstrate they will remain technologically relevant over the next several years.

Incumbent providers still retain an advantage from their knowledge of a client’s existing IT environment, he said. That context is especially valuable in AI deployments, where Dalal characterized the outcome as a combination of AI and customer-specific context.

On workforce trends, Dalal said employment among major IT services firms increased from 2023 to 2024 and again from 2024 to 2025, but has become “largely flattish” from 2025 to 2026. He expects staffing levels to remain within a relatively narrow range for the next 18 to 24 months rather than show substantial additions or reductions.

Over time, he said, employee costs should decline as a portion of cost of sales and be replaced in part by virtual effort and inference costs, while companies seek to preserve gross margins.

Dalal also said new spending on large language model tokens and graphics processing unit usage currently represents an outsized portion of technology budgets, much as software licensing and cloud spending did in earlier cycles. He expects services spending to regain a more balanced share of customer budgets as companies focus on realizing value from those technology investments.

Large Deals, AI Offerings and Revenue Mix Dalal said Cognizant reached its targeted “winner’s circle” competitive position in 2025, earlier than its previous 2027 aspiration, and maintained that standing through the first six months of 2026. He attributed the performance to the company’s combination of domain knowledge and technology capabilities, its ability to win and execute large deals, and relatively high investment in AI.

He said bookings were up 5% over the trailing 12 months, supported by large-deal activity. New work volumes are growing at a double-digit pace, he said, but that growth is partly offset by productivity-led shrinkage in existing work. Cognizant has said that 40% of its software-engineering work is now AI-assisted, reducing human effort required in that area.

Cognizant expects its traditional “vector one” services to remain the dominant source of revenue in 2026. Dalal said vector two and vector three opportunities are becoming more visible in bookings, including contracts larger than proof-of-concept projects or $2 million to $3 million engagements, but are generally not yet comparable to $300 million contracts. He expects their revenue contribution to become more meaningful in 2027 and 2028.

The company is also incorporating inference into pricing models. Dalal said fixed-price customers increasingly focus on total cost of ownership rather than individual labor rate cards. For time-and-materials work, Cognizant is using an A0-to-A4 framework that distinguishes between traditional human-led delivery and varying degrees of AI-led or agentic work.

Margins, Capital Allocation and India Listing Discussions Dalal said Cognizant expects gross margin to improve gradually. The company has guided for a 10-basis-point increase in operating margin at the midpoint of its 2026 guidance range from Project Leap, a savings program whose benefits are being partly reinvested in employee training, AI delivery infrastructure and internal tools.

For capital allocation, Dalal said Cognizant plans to maintain its 50/25/25 framework, allocating 50% to mergers and acquisitions, 25% to dividends and 25% to buybacks. The company added and executed an additional $1 billion buyback in May, which he described as an opportunistic acceleration of future repurchases.

On a potential Indian listing, Dalal said Cognizant expects regulators to offer draft regulations by the end of the year. The board would then assess whether the resulting framework serves the interests of existing shareholders and other stakeholders before deciding whether to proceed.

About Cognizant Technology Solutions (NASDAQ:CTSH)Cognizant Technology Solutions Corporation is a professional services and information technology company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company provides consulting, systems integration, application development and maintenance, and business process services to clients across industries.

Its offerings include cloud enablement, software engineering, data and analytics, artificial intelligence, cybersecurity, automation and digital workplace solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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It has been about a month since the last earnings report for Cognizant (CTSH - Free Report) . Shares have added about 18.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cognizant due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Cognizant Q2 Earnings Miss Estimates, Revenues Beat, Rise Y/YCognizant reported second-quarter 2026 adjusted earnings of $1.37 per share, up 4.6% year over year, but lagging the Zacks Consensus Estimate by 0.7%. Higher interest expense related to Astreya acquisition funding and share repurchases weighed on earnings.

Revenues of $5.48 billion increased 4.5% year over year and surpassed the consensus mark by 0.03%. The revenue figure reflected 4.1% growth in constant currency (cc). Financial Services revenues jumped 12% year over year, while trailing 12-month bookings rose 5% to $29.1 billion. This represented a book-to-bill ratio of approximately 1.3X. However, second-quarter bookings declined 6% year over year.

Cognizant signed seven deals with total contract values exceeding $100 million, including three new-logo contracts. Management noted stronger activity in the $25-million-to-$100-million deal range and said new and expansion bookings grew in the mid-teens during the first half.

CTSH’s Financial Services Momentum ContinuesFinancial Services revenues hit $1.73 billion, which reflected 11.7% growth at cc. Growth remained broad-based across banking, capital markets and insurance clients as large contracts moved into execution.

North American Financial Services revenues climbed 15.2% year over year to $1.26 billion. Europe and Rest of World revenues rose 4.1% and 4.5%, respectively. Management also highlighted demand for legacy modernization, data services and AI-led transformation.

Health Sciences revenues totaled $1.57 billion, up 1.4% year over year and 1% in cc. Demand remained cautious and cost-focused as clients prioritized vendor consolidation, compliance and modernization projects with measurable returns.

Products and Resources revenues rose 1.2% year over year to $1.32 billion, while growth at cc was 0.7%. Communications, Media and Technology revenues increased 1.5% year over year to $854 million, reflecting strength in technology customers despite muted demand across communications and media.

CTSH’s North American Business Leads GrowthNorth America revenues advanced 5.5% year over year to $4.13 billion, with the same growth rate at cc. Large-deal ramps, third-party product sales and demand for AI infrastructure supported performance in the region.

Europe revenues increased 2.5% year over year to $1.03 billion but rose only 0.8% in cc. Rest of World revenues declined 1.2% year over year to $327 million and fell 1.5% in cc. Third-party product sales contributed about 170 basis points (bps) to overall revenue growth.

CTSH’s Q2 Operating DetailsSelling, general & administrative expenses, as a percentage of revenues, contracted 220 bps year over year to 13.3%.

Total headcount at the end of the second quarter was 356,700, a decrease of 900 from March 31, 2026 and an increase of 12,900 from June 30, 2025.

Voluntary attrition - Tech Services on a trailing 12-month basis was 13% in the second quarter of 2026 compared with 12.3% and 12.6% for the periods ended March 31, 2026, and June 30, 2025, respectively.

Adjusted operating margin expanded 40 bps year over year to 16%. Operational efficiencies and favorable currency movements more than offset higher compensation, third-party costs and the impact of recent acquisitions.

CTSH’s Balance Sheet DetailsCTSH had cash and short-term investments of $1.05 billion as of June 30, 2026, compared with $1.52 billion as of March 31, 2026. As of June 30, 2026, the company had a total debt of $1.56 billion, up from $568 million reported as of March 31, 2026.

Operating cash flow increased to $558 million from $398 million a year earlier. Free cash flow rose to $459 million from $331 million, bringing the first-half total to $657 million.

Cognizant repurchased 22.5 million shares for $1.15 billion during the reported quarter and completed the $634-million Astreya acquisition. The company had $2.338 billion remaining under its repurchase authorization at the end of the reported quarter.

Cognizant Raises Earnings View, Trims Revenue OutlookFor the third quarter of 2026, Cognizant expects revenues between $5.60 billion and $5.68 billion. This implies reported growth of 3.4-4.9% and growth between 3.8% and 5.3% at cc, including an inorganic contribution of roughly 200 bps.

For 2026, the company now expects revenues of $22.04-$22.35 billion, representing growth between 4%-5.5% at cc. The revised range reflects continued pressure on discretionary spending. Adjusted operating margin guidance remains in the 16%-16.2% range, which reflects expansion between 20 bps and 40 bps.

Adjusted earnings guidance was raised to $5.70-$5.82 per share from $5.63-$5.77, implying growth of 8-10%. The increase reflects a lower expected share count following aggressive repurchases, partly offset by higher interest expense.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, Cognizant has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cognizant has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerCognizant belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Roper Technologies (ROP - Free Report) , has gained 8.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Roper Technologies reported revenues of $2.11 billion in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $5.38 for the same period compares with $4.87 a year ago.

Roper Technologies is expected to post earnings of $5.79 per share for the current quarter, representing a year-over-year change of +12.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

Roper Technologies has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

12% year-over-year revenue growth in Financial Services; $1.1 billion deployed on share repurchases

Revenue of $5.5 billion increased 4.5% year-over-year or 4.1% in constant currency1 Operating margin of 15.9% increased 30 basis points year-over-year; Adjusted Operating Margin1 of 16.0% increased 40 basis points year-over-year GAAP EPS of $1.36 increased 3.8% year-over-year; Adjusted EPS1 of $1.37 increased 4.6% year-over-year Trailing 12-month bookings of $29.1 billion increased 5% year-over-year 2026 constant currency revenue growth guidance is revised to 4.0% to 5.5% year-over-year growth 2026 Adjusted Operating Margin guidance is unchanged at 16.0% to 16.2%, year-over-year expansion of 20 to 40 basis points 2026 Adjusted Diluted EPS guidance is increased to $5.70 to $5.82, year-over-year growth of 8% to 10% , /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading AI builder and technology services provider, today announced its second quarter 2026 financial results.

Q2 2026 Infographic. Cognizant is an AI Builder company www.cognizant.ai. "Our organic revenue growth momentum continued in the second quarter and was at the high end of our expectations," said Ravi Kumar S, Chief Executive Officer. "We are helping our clients close the AI velocity gap by pairing deep industry expertise with engineering, infrastructure and data modernization capabilities while safeguarding their data and IP. We are doing this by scaling our Frontier workforce and reskilling for the future. We are confident our strategy is resonating with clients, as reflected in a second consecutive quarter of double-digit year-over-year growth in Financial Services, our largest and most mature segment. As organizations shift from AI experimentation to enterprise-scale execution, we believe the market opportunity ahead is larger than ever, and we're positioning Cognizant to lead in this next era."

$ in millions, except per share data

Q2 2026

Q2 2025

Revenue

$5,481

$5,245

Y/Y Change

4.5 %

8.1 %

Y/Y Change CC1

4.1 %

7.2 %

GAAP Operating Margin

15.9 %

15.6 %

Adjusted Operating Margin1

16.0 %

15.6 %

GAAP Diluted EPS

$1.36

$1.31

Adjusted Diluted EPS1

$1.37

$1.31

See "Revenue by Business Segment and Geography" section for additional revenue details and drivers of growth.

"Our second quarter results reflect disciplined execution and the resilience of our operating model. We delivered 4.1% constant currency revenue growth and 40 basis points of adjusted operating margin expansion year-over-year, despite a complex environment," said Jatin Dalal, Chief Financial Officer. "In the first half of 2026, we deployed $1.6 billion on share repurchases and $1.3 billion on acquisitions aligned with our AI builder strategy. We remain focused on operational rigor and consistent margin expansion while funding growth investments and deploying capital strategically."

Bookings

On a trailing-twelve-month basis, bookings increased 5% year-over-year to $29.1 billion, which represented a book-to-bill of approximately 1.3x. Bookings in the second quarter declined 6% year-over-year. Second quarter bookings included seven large deals, which are deals with total contract value of $100 million or greater.

Employee Metrics

On a trailing-twelve months basis, Voluntary Attrition - Tech Services was 13.0% for the period ended June 30, 2026, as compared to 12.3% and 12.6% for the periods ended March 31, 2026 and June 30, 2025, respectively. Total headcount as of June 30, 2026 was 356,700, a decrease of 900 from March 31, 2026 and an increase of 12,900 from June 30, 2025. 

Capital Allocation

The Company repurchased 22.5 million shares for $1,153 million during the second quarter under its share repurchase program, including 9.7 million shares through its previously announced $500 million accelerated share repurchase (ASR) as well as another 12.8 million shares for $653 million through open market transactions. As of June 30, 2026, there was $2.3 billion remaining under the share repurchase authorization. In July 2026, the Company declared a quarterly cash dividend of $0.33 per share for shareholders of record on August 18, 2026. This dividend will be payable on August 25, 2026. 

During the second quarter of 2026, the company completed its acquisition of Astreya for a purchase price of $634 million, including contingent consideration of $25 million, net of cash acquired, while borrowing $1.0 billion under its revolving credit facility.

Third Quarter and Full-Year 2026 Guidance2 

(all growth rates year-over-year)

Third quarter revenue is expected to be $5.60 to $5.68 billion, growth of 3.4% to 4.9%, or 3.8% to 5.3% in constant currency. Full-year 2026 revenue is expected to be $22.04 to $22.35 billion, growth of 4.4% to 5.9%, or 4.0% to 5.5% 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 $5.70 to $5.82, growth of 8% to 10%. 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

Announced it is working with Travelport on a strategic AI transformation that will deploy Anthropic's Claude to modernize the way Travelport builds, tests and maintains software across its travel retailing and distribution platforms. The work aims to accelerate the delivery of AI-led innovation to airlines, hoteliers, travel management companies and online travel agencies worldwide, while embedding AI features within Travelport's platform. Named as Global AI Services Partner of the Aston Martin Aramco Formula One™ (AMF1) Team, marking an evolution of the collaboration to advance performance, innovation, and operational excellence across its Formula 1™ program. Under the new designation, Cognizant and the team will work to operationalize AI - bridging the gap between experimentation and sustained value. Cognizant will also help the team identify how context-enabled AI can manage, support, and define the team's fan database. Selected by UK public service broadcaster Channel 4 to transform its advertising campaign delivery operations, which are responsible for booking, scheduling, and airing adverts across Channel 4 and its partner channels. As part of the project, Cognizant looks to enhance Channel 4's account management hub, campaign operations and traffic functions, which are responsible for ensuring that advertising reaches the right audiences at the right time, meets advertisers' objectives, and supports compliance with applicable regulations under Channel 4's oversight. Chosen by JG Summit Holdings, Inc., one of the Philippines' largest and more diversified conglomerates, for a ServiceNow implementation and managed services engagement supporting its IT modernization journey. Cognizant is expected to deploy ServiceNow IT Service Management (ITSM) Professional, IT Asset Management and Strategic Portfolio Management (SPM) capabilities to establish a unified platform for helping automate IT service processes, track hardware and software assets, and govern project demand and portfolios. Selected by Snohomish County Public Utility District (PUD), a public utility in the state of Washington, to lead SAP S/4 HANA transformation to modernize utility operations. Cognizant is expected to migrate the PUD's SAP on‑premise environment to SAP's cloud platform, implement Cognizant's Finance4U SAP S/4 HANA‑certified Asset Lifecycle Accounting solution and deploy SAP mobility capabilities to support field and warehouse operations. Selected by The Andover Companies, Inc., one of the longest-standing mutual property and casualty insurance groups in the Northeast, to scale its core and portal systems, unify its data and help lay the foundation for responsible AI adoption in underwriting and claims. Under the agreement, Cognizant will modernize integration of Andover's core policy administration platform to its digital properties, build a new enterprise data platform and strengthen the security of Andover's policyholder- and agent-facing digital portals. Platform Enhancements and Partnerships

Revealed new headless API model that treats AI agents as first-tier consumers of TriZetto Unify, Cognizant's platform strategy that spans payer and provider workflows. Electronic Prior Authorization is the first solution to go live, following the rollout of TriZetto Assistant and TriZetto Autonomous Workflow Agents to existing customers. Announced an expanded partnership with Anthropic, with Cognizant becoming one of a small number of Global Premier Partners in the Claude Partner Network. Cognizant is embedding Claude across its own business and engineering platforms, while scaling a Claude-certified workforce as part of its new Frontier Certified workforce model. Cognizant is already applying Claude in client work spanning manufacturing, life sciences and insurance, delivering measurable results in production. Expanded its partnership with Google Cloud, broadening how the companies bring Gemini Enterprise to clients and deepening Cognizant's own internal use of the technology. Through the expanded partnership, Cognizant and Google Cloud are bringing together jointly delivered solutions, a portfolio of reusable agents and certified Cognizant Frontier Certified Engineers who work directly within client environments to accelerate time to value on Gemini deployments. Announced it is applying OpenAI's GPT-5.5 with Trusted Access for Cyber, through Cognizant's Frontier AI Cyber Defense services, to help enterprises move faster from vulnerability discovery to validated, tested fixes. As a member of the OpenAI Daybreak Cyber Partner Program, Cognizant is putting frontier AI capability into its security experts' hands, helping strengthen how clients defend the software they build and operate. Deepened its partnership with CrowdStrike by bringing the CrowdStrike Falcon® platform to Cognizant's AI Factory and its Managed Cybersecurity Services, powered by the Cognizant Neuro® Cybersecurity platform. Expanded cross-platform agentic AI with new ServiceNow AI Agent interoperability. ServiceNow AI Agents now work with the Cognizant Neuro® AI Multi-Agent Accelerator, giving enterprises a unified environment to orchestrate AI agents across the platforms they already run. Enterprises can coordinate ServiceNow agents alongside custom-built systems and other third-party agent platforms. Announced the integration of Cognizant Neuro® AI Trust with ServiceNow, pairing ServiceNow's visibility and governance with Cognizant's agentic intelligence and control platform. The integration is designed to give organizations a single, interoperable environment in which AI governance is actively enforced through responsible AI agents operating across every stage of the AI lifecycle. Expanded its partnership with Snowflake, an AI data cloud company, through the Snowflake CoCo platform. As a Preferred Launch Partner for CoCo and Snowflake's 2026 CoCo Catalyst Partner of the Year for Impactful Customer Story, Cognizant is deploying a growing portfolio of AI-powered intelligent agents that support and enhance data engineering, analytics and business decision workflows. Announced an expanded strategic alliance with Rubrik to help enterprises run autonomous AI safely at scale. As a launch partner for Rubrik's Project Hourglass, an alliance with leading Global Systems Integrators (GSIs) to deliver agentic resilience for enterprise AI coding agents, Cognizant intends to be one of the first global systems integrators to operationalize the offering as a governance layer within its delivery platforms. Partnered with Domyn, a European leader in sovereign AI infrastructure for regulated industries, to bring sovereign AI capabilities to enterprises in highly regulated sectors across the EMEA region. Under the partnership, Domyn will provide the AI infrastructure layer, delivering LLMs that can be deployed within client environments, on-premise or in private cloud configurations, while Cognizant will serve as the application, integration, and domain execution layer. Launched Cognizant Neuro® AI Trust, a new platform designed to provide enterprises with continuous governance and real-time assurance across AI systems. As AI environments grow more autonomous and complex, Neuro AI Trust empowers enterprises to monitor, manage and help control AI behavior and performance in real time. Launched its sovereign Physical AI Platform-as-a-Service, an integrated capability that moves autonomous systems from experimentation into core enterprise infrastructure. Built on the Cognizant Intelligence Spine, the offering connects disparate physical systems, including industrial sensors, IoT devices, factory automation and energy infrastructure, into a single coherent intelligence fabric. Select Company Announcements and Recognition

Launched Cognizant Secure AI Services, a new integrated offering designed to help enterprises secure, govern and scale AI and agentic systems across their operations. The offering is designed to help enterprises move from assumed trust toward "provable trust" – an approach grounded in evidence, traceability and continuous assurance. Announced the creation of two new job categories; Frontier Certified Engineer and Frontier Business Operator, and announced plans to scale its Frontier-certified workforce, the human and operational infrastructure enterprises need to convert AI capability into measurable business results, to 5,000 Frontier Certified Engineers and 10,000 Frontier Business Operators. Cognizant expects its people investment will yield its first cohort by fourth quarter, 2026. Cognizant also plans to augment its own Frontier talent pipeline through annual direct hires of Frontier-native talent from American and global universities. Launched its Ace Team Program, a strategic initiative designed to build a cohort of top engineering minds who will deliver cutting-edge digital transformation for clients and play a central role in the company's evolution into an AI builder organization. The Cognizant Ace Team is structured as a combination of a selective hiring program, an elite talent pathway and a centrally governed engineering community aligned to Cognizant's advanced capability strategy. Completed its acquisition of Astreya, a global AI-first IT managed services and solutions provider, effective June 22, 2026. The combination is expected to strengthen Cognizant's AI infrastructure and managed services capabilities by bringing together Cognizant's global delivery model and AI builder approach with Astreya's deep expertise supporting complex technology environments for many of the world's largest technology companies, including six of the "Magnificent Seven" hyperscalers. Was named to TIME's list of America's Best Companies 2026 in the ranking's inaugural edition. TIME and Statista evaluated America's Best Companies 2026 across three dimensions: employee satisfaction, financial performance and sustainability transparency.  Earned a place on the Fortune 500 list, marking its 16th consecutive year of recognition. The annual ranking by Fortune Magazine evaluates companies based on total revenues for their respective fiscal years. In the 2026 edition, Cognizant ranked 216 overall and third in the IT services industry. Released new research showing that AI's real-world results depend less on the technology itself than on the maturity of a company's tech infrastructure and where it directs its investment. The study, "Closing the AI Execution Gap: A $2 Billion Business Boost," revealed $4.7 trillion in untapped AI value across Global 2000 companies. Unveiled a new report focused on India titled "Smarter IT spend: From cost control to cost intelligence." The report revealed that while technology investments are rising across industries, only 12% of organizations have an enterprise-wide unified view of IT spend, limiting their ability to translate technology investments into measurable business outcomes. Revealed new findings from a joint study with Pearson, The AI Workforce Pulse, signaling that entry-level roles are being reimagined by AI, and work is evolving faster than organizations can redesign how they hire, develop and support talent. Released findings from a joint study with Pearson, The AI Workforce Pulse: The Adaptability Imperative, highlighting how AI is transforming India's entry-level workforce at a faster pace than the global average, while simultaneously creating new career pathways and urgent skilling challenges. Recognized as a Leader by Everest Group® in: Healthcare Payer Digital Services PEAK Matrix® Assessment, 2026 Marketing Transformation Services PEAK Matrix® Assessment, 2026 Guidewire Services PEAK Matrix® Assessment, 2026 Agentic Process Automation (APA) Solutions PEAK Matrix® Assessment, 2026 Oracle Cloud Applications Services PEAK Matrix® Assessment, 2026 Healthcare Customer Experience Management (CXM) Intelligent Operations PEAK Matrix® Assessment, 2026 Software Product Engineering Services PEAK Matrix® Assessment, 2026 – Global Google Cloud Services PEAK Matrix® Assessment, 2026 Mainframe Modernization Services PEAK Matrix® Assessment, 2026 Market Leader in HFS Horizons:  Financial Crime Compliance (FCC) in Financial Services, 2026 Report Data Modernization and AI, 2026 Report HCP Service Providers, 2026 Report SAP S/4HANA Transformation Services, 2026 Report Global Capability Centers (GCC) Services, 2026 Report Leadership in Avasant's RadarView:    Clinical and Care Management Services Business Process Transformation, 2026 Higher Education Digital Services, 2026 Advanced Network Services, 2026 High-Tech Digital Services, 2026 Airlines and Airports Digital Services, 2026 Manufacturing Digital Services, 2026 Banking Process Transformation, 2026 Healthcare Payer Business Process Transformation, 2026 Property and Casualty Insurance Digital Services, 2026 Banking Digital Services, 2026 Global Competency Center (GCC) Setup and Scale Services, 2026 Digital Commerce Services, 2026 Cybersecurity Services, 2026 Leadership in ISG Provider Lens® Global Capability Center (GCC) Services, 2026 - Global Named to the Leading Pack in TechMarketView's Market Readiness Index 2026 Conference Call

Cognizant will host a conference call on July 29, 2026, at 8:30 a.m. (Eastern) to discuss the Company's second 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 13760925 beginning two hours after the end of the call until 11:59 p.m. (Eastern) on Wednesday, August 12, 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.ai or @cognizant.

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 AI, the effectiveness of and plans related to 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, expected benefits resulting from our 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 Project Leap charges and the partial reversal of the India Defined Contribution Obligation in 2026 and the gain on sale of property and equipment in 2025. Our non-GAAP financial measures Adjusted Net Income and Adjusted Diluted EPS exclude unusual items, such as Project Leap charges, the partial reversal of the India Defined Contribution Obligation and 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

[email protected] 

[email protected] 

- tables to follow -

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 (in millions, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

 Revenues

$   5,481

$   5,245

$ 10,894

$ 10,360

 Operating expenses:

Cost of revenues (exclusive of depreciation and amortization expense
shown separately below)

3,652

3,479

7,290

6,876

 Selling, general and administrative expenses

728

810

1,519

1,601

 Restructuring charges

84

—

84

—

 Depreciation and amortization expense

143

139

284

275

(Gain) on sale of property and equipment

—

—

—

(62)

 Income from operations

874

817

1,717

1,670

 Other income (expense), net:

 Interest income

18

23

40

53

 Interest expense

(13)

(9)

(20)

(21)

 Foreign currency exchange gains (losses), net

7

7

25

9

 Other, net

(11)

4

(20)

3

 Total other income (expense), net

1

25

25

44

 Income before provision for income taxes

875

842

1,742

1,714

 Provision for income taxes

(231)

(197)

(439)

(410)

 Income (loss) from equity method investments

(8)

—

(5)

4

Net income

$     636

$     645

$   1,298

$   1,308

 Basic earnings per share

$    1.36

$    1.31

$     2.76

$     2.65

 Diluted earnings per share

$    1.36

$    1.31

$     2.75

$     2.65

Weighted average number of common shares outstanding - Basic

466

492

471

493

Dilutive effect of shares issuable under stock-based compensation plans

—

—

1

—

Weighted average number of common shares outstanding - Diluted

466

492

472

493

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(in millions, except par values)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$      1,038

$      1,901

Short-term investments

13

13

Trade accounts receivable, net

4,780

4,439

Other current assets

1,728

1,465

Total current assets

7,559

7,818

Property and equipment, net

981

933

Operating lease assets, net

555

573

Goodwill

8,083

7,106

Intangible assets, net

1,675

1,417

Deferred income tax assets, net

764

967

Long-term investments

106

111

Other noncurrent assets

1,102

1,767

Total assets

$    20,825

$    20,692

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$         357

$         308

Deferred revenue

490

501

Short-term debt

33

33

Operating lease liabilities

145

153

Accrued expenses and other current liabilities

2,439

2,664

Total current liabilities

3,464

3,659

Deferred revenue, noncurrent

31

37

Operating lease liabilities, noncurrent

389

423

Deferred income tax liabilities, net

177

168

Long-term debt

1,527

543

Other noncurrent liabilities

775

847

Total liabilities

6,363

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, 452 and 479 shares issued
and outstanding as of June 30, 2026 and December 31, 2025, respectively

5

5

Additional paid-in capital

11

12

Retained earnings

14,647

15,158

Accumulated other comprehensive income (loss)

(201)

(160)

Total stockholders' equity

14,462

15,015

Total liabilities and stockholders' equity

$    20,825

$    20,692

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

Reconciliations of Non-GAAP Financial Measures

(Unaudited)

 (dollars in millions, except per share amounts)

Three Months Ended
June 30,

Six Months Ended
June 30,

Guidance

2026

2025

2026

2025

Full Year 2026 (1)

GAAP income from operations

$  874

$  817

$ 1,717

$ 1,670

Project Leap charges(a)

84

—

84

—

$230 - $320

India Defined Contribution Obligation(b)

(81)

—

(81)

—

$(81)

(Gain) on sale of property and equipment(c)

—

—

—

(62)

—

Adjusted Income From Operations

$  877

$  817

$ 1,720

$ 1,608

GAAP operating margin

15.9 %

15.6 %

15.8 %

16.1 %

Project Leap charges(a)

1.5

—

0.8

—

1.0% - 1.5%

India Defined Contribution Obligation(b)

(1.4)

—

(0.8)

—

(0.4) %

(Gain) on sale of property and equipment(c)

—

—

—

(0.6)

—

Adjusted Operating Margin

16.0 %

15.6 %

15.8 %

15.5 %

16.0% - 16.2%

GAAP net income

$  636

$  645

$ 1,298

$ 1,308

Effect of adjustments to income from operations, pre-tax

3

—

3

(62)

Non-operating foreign currency exchange (gains) losses, pre-tax(d)

(7)

(7)

(25)

(9)

Tax effect of above adjustments(e)

7

7

29

19

Adjusted Net Income

$  639

$  645

$ 1,305

$ 1,256

GAAP diluted earnings per share

$  1.36

$  1.31

$  2.75

$  2.65

Effect of adjustments to income from operations, pre-tax

0.01

—

0.01

(0.13)

(a)(b)(c)

Non-operating foreign currency exchange (gains) losses, pre-tax(d)

(0.02)

(0.01)

(0.05)

(0.02)

(d)

Tax effect of above adjustments(e)

0.02

0.01

0.05

0.05

(d)

Adjusted Diluted Earnings Per Share

$  1.37

$  1.31

$  2.76

$  2.55

$5.70 - $5.82

(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)

Project Leap charges for the three and six months ended June 30, 2026 were $84 million and included $56 million of employee separation costs and $28 million of other costs. We expect to incur costs of $230 million to $320 million in connection with Project Leap, with substantially all of the costs expected to be incurred in 2026. The total costs related to Project Leap are reported in "Restructuring charges" in our unaudited consolidated statements of operations. Our guidance anticipates pre-tax charges of approximately $0.50 to $0.70 per diluted share for the full year 2026. The tax benefit of these charges is expected to be approximately ($0.13) to ($0.18) per diluted share for the full year 2026.

(b)

On February 28, 2019, a ruling of the Supreme Court of India interpreting certain statutory defined contribution obligations of employees and employers (the "India Defined Contribution Obligation") altered historical understandings of the obligation under the Employees' Provident Fund and Miscellaneous Provision Act, 1952, extending it to cover additional portions of the employee's income. As a result, the ongoing contributions of our affected employees and the Company were required to be increased. In the first quarter of 2019, we accrued $117 million with respect to prior periods, assuming retroactive application of the SCI's ruling, in "Selling, general and administrative expenses" in our unaudited consolidated statement of operations.

Labor law reforms implemented by the Government of India effective November 21, 2025, including the Code on Social Security, 2020, were designed to repeal and replace the Employees' Provident fund and Miscellaneous Provisions Act, 1952, subject to the issuance of applicable rules. The Social Security Rules were notified by the government of India in May 2026. Additionally, the government of India published the Employees Provident Fund Scheme of 2026 in June 2026. As a result of these developments, management concluded that the liability relating to periods where no proceedings had been initiated by the government is no longer required. Thus, in the second quarter of 2026, management recorded a benefit of $81 million in "Selling, general and administrative expenses" in our unaudited consolidated statement of operations. Our guidance anticipates a pre-tax benefit of approximately ($0.18) per diluted share with a corresponding tax expense of approximately $0.05 per diluted share for the full year 2026.

(c)

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.

(d)

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.

(e)

Presented below are the tax impacts of our non-GAAP adjustment to pre-tax income for the: 

(in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Non-GAAP income tax benefit (expense) related to:

Project Leap charges

22

—

22

—

India Defined Contribution Obligation

(21)

—

(21)

—

Gain on sale of property and equipment

—

—

—

(9)

Foreign currency exchange gains and losses

(8)

(7)

(30)

(10)

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.

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 June 30, 2026

Year over Year

$

 % of total

 % Change

Constant
Currency 
% Change (a)

Revenues by Segment:

Health Sciences

$     1,572

28.7 %

1.4 %

1.0 %

Financial Services (c)

1,733

31.6 %

12.0 %

11.7 %

Products and Resources (c)

1,322

24.1 %

1.2 %

0.7 %

Communications, Media and Technology (c)

854

15.6 %

1.5 %

1.4 %

Total Revenues (b)(c)

$     5,481

4.5 %

4.1 %

Revenues by Geography:

North America (b)(c)

$     4,127

75.3 %

5.5 %

5.5 %

United Kingdom

492

9.0 %

2.1 %

1.5 %

Continental Europe

535

9.7 %

2.9 %

0.1 %

Europe - Total

1,027

18.7 %

2.5 %

0.8 %

Rest of World

327

6.0 %

(1.2) %

(1.5) %

Total Revenues (b)(c)

$     5,481

4.5 %

4.1 %

Six Months Ended June 30, 2026

Year over Year

$

 % of total

 % Change

Constant
Currency
% Change (a)

Revenues by Segment:

Health Sciences

$     3,151

28.9 %

0.9 %

— %

Financial Services (c)

3,377

31.0 %

12.2 %

11.0 %

Products and Resources (c)

2,643

24.3 %

2.3 %

0.9 %

Communications, Media and Technology (c)

1,723

15.8 %

4.7 %

3.9 %

Total Revenues (b)(c)

$    10,894

5.2 %

4.0 %

Revenues by Geography:

North America (b)(c)

$     8,179

75.0 %

5.3 %

5.2 %

United Kingdom

1,001

9.2 %

6.6 %

3.0 %

Continental Europe

1,065

9.8 %

5.1 %

(1.5) %

Europe - Total

2,066

19.0 %

5.8 %

0.7 %

Rest of World

649

6.0 %

1.1 %

(0.1) %

Total Revenues (b)(c)

$    10,894

5.2 %

4.0 %

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 three and six months ended June 30, 2026, revenues from our recently completed acquisitions contributed approximately 100 basis points and 90 basis points, respectively, to overall revenue growth, across all segments in North America.

(c)

For the quarter ended June 30, 2026, the sale of third-party products in connection with our integrated offerings strategy contributed approximately 170 basis points to overall revenue growth. These sales contributed 175 basis points of growth to our North America region and 350 basis points of growth to our Continental Europe region. These sales contributed 350 basis points of growth to our Communications Media and Technology segment, 250 basis points of growth to our Financial Services segment and 125 basis points of growth to our Products and Resources segment. For the six months ended June 30, 2026, the sale of third-party products, primarily in North America and Europe, in connection with our integrated offerings strategy, contributed approximately 160 basis points to overall revenue growth. These sales contributed 675 basis points of growth to our Communications Media and Technology segment and 250 basis points growth to our Financial Services segment.

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Cash flows from operating activities:

Net income

$     636

$     645

$  1,298

$  1,308

Adjustments for non-cash income and expenses

224

133

516

297

Changes in operating assets and liabilities, net of effects of businesses acquired

(302)

(380)

(982)

(807)

Net cash provided by operating activities

558

398

832

798

Cash flows from investing activities:

Purchases of property and equipment

(99)

(67)

(175)

(144)

Proceeds from sale of property and equipment

—

—

—

70

Net (purchases) of investments

—

(15)

—

(15)

Payments for business combinations, net of cash acquired

(604)

—

(1,334)

—

Net cash (used in) investing activities

(703)

(82)

(1,509)

(89)

Cash flows from financing activities:

Issuance of common stock under stock-based compensation plans

12

14

29

33

Repurchases of common stock

(1,163)

(368)

(1,607)

(577)

Net change in term loan borrowings and finance leases

(12)

(9)

(23)

(21)

Proceeds from borrowing under the revolving credit facility

1,000

—

1,000

—

Repayment of notes outstanding under the revolving credit facility

—

—

—

(300)

Dividends paid

(157)

(153)

(316)

(308)

Net cash (used in) financing activities

(320)

(516)

(917)

(1,173)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(1)

16

(2)

29

(Decrease) in cash, cash equivalents and restricted cash

(466)

(184)

(1,596)

(435)

Cash, cash equivalents and restricted cash, beginning of period

1,504

1,980

2,634

2,231

Cash and cash equivalents, end of period

$  1,038

$  1,796

$  1,038

$  1,796

SUPPLEMENTAL CASH FLOW INFORMATION

(in millions)

Three Months Ended

June 30,

Stock Repurchases under Board of Directors' authorized stock repurchase program:

2026

2025

Number of shares repurchased

22.5

4.5

Remaining authorized balance as of June 30, 2026

$    2,338

Reconciliation of Free Cash Flow Non-GAAP Financial Measure

(in millions)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Net cash provided by operating activities

$       558

$       398

$     832

$      798

Purchases of property and equipment

(99)

(67)

(175)

(144)

Proceeds from sale of property and equipment

—

—

—

70

Free cash flow

$       459

$       331

$     657

$      724

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.

2

Guidance as of July 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.

SOURCE Cognizant Technology Solutions Corporation

Key Takeaways Cognizant expects Q2 revenues of $5.45B-$5.52B, supported by large-deal ramps and AI demand. CTSH sees Astreya boosting Q2 growth, while AI engagements and platform-led delivery expand. CTSH faces macro uncertainty, softer discretionary demand and competition before Q2 results. Cognizant Technology Solutions (CTSH - Free Report) is scheduled to report its second-quarter 2026 results on July 29, 2026.

The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.38 per share, which has been unchanged over the past 30 days. This represents a 5.34% increase from the figure reported in the year-ago quarter.

For the second quarter of 2026, Cognizant expects revenues in the range of $5.45-$5.52 billion, implying year-over-year growth of 3.8%-5.3% (3.2%-4.7% at constant currency).

The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.48 billion, indicating a year-over-year increase of 4.54%.

Cognizant’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.81%.

Let’s see how things have shaped up for the upcoming announcement.

Factors to NoteCognizant’s second-quarter performance is expected to have benefited from the ramp-up of large deals and strong bookings momentum achieved in the previous quarters. In the first quarter of 2026, CTSH signed seven large deals, including one mega deal valued at over $500 million. Bookings grew 21% year over year, and trailing 12-month bookings reached $29.6 billion, for a book-to-bill of about 1.4x, reflecting continued large-deal activity. Management emphasized that many of these large-deal transitions, initiated in the fourth quarter of 2025 and the first quarter of 2026, will begin to unlock revenues in the second quarter of 2026 and the third quarter of 2026 as they move from transition to production phases.

The company continues to gain traction in AI-led services and platform-driven delivery, supported by large-deal ramps and steady constant-currency growth. In the first quarter of 2026, the company reported more than 5,000 AI engagements and said nearly 40% of its code is AI-assisted, supported by partnerships that include Anthropic, Google Gemini and OpenAI Codex.

Another significant benefit for the second quarter of 2026 is the partial quarter contribution from recent acquisitions, particularly Astreya. CTSH completed the acquisition of Astreya, a specialist in AI infrastructure and managed services, which is expected to add a critical layer to CTSH’s AI Builder technology stack. The second-quarter guidance includes approximately 150 basis points of revenue growth from recently completed acquisitions, with Astreya providing a partial quarter contribution.

CTSH’s strong position in key verticals such as Financial Services and Health Sciences, along with healthy demand for AI, analytics, and integrated offerings, is expected to have supported second-quarter growth. Financial Services, in particular, delivered double-digit growth in the first quarter of 2026 and continues to benefit from robust investment cycles and innovation budgets. The company is also capitalizing on opportunities in predictive supply chains, agentic commerce and hyper-personalization, especially as clients seek to consolidate vendors and modernize legacy systems.

However, the company is suffering from challenging macroeconomic uncertainty, softening discretionary demand and stiff competition. These challenges are expected to have affected CTSH’s performance in the to-be-reported quarter.

What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Cognizant has an Earnings ESP of -1.34% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Amphenol (APH - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol shares have gained 13% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29.

ASE Technology (ASX - Free Report) has an Earnings ESP of +21.21% and a Zacks Rank #1.

ASE Technology shares have surged 128.9% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30.

Fortive (FTV - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #2 at present.

Fortive shares have gained 12.9% in the year-to-date period. Fortive is set to report second-quarter 2026 results on July 29.

Cognizant's Frontier workforce model to create the human infrastructure that turns AI investment into enterprise outcomes Backed by decades of running technology and operations at enterprise scale, Cognizant's human capital operating model embeds outcome-owning Frontier talent inside client operations Cognizant Frontier talent operates across any cloud, any model to help close the gap between AI capability and enterprise results , /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading AI Builder and technology services provider, today announced it was committing to scaling its Frontier-certified workforce, the human and operational infrastructure enterprises need to convert AI capability into measurable business results, to 5,000 Frontier Certified Engineers and 10,000 Frontier Business Operators.

Cognizant's people investment will yield its first cohort, which will be both Frontier-assessed and deployment-ready, by fourth quarter, 2026. Cognizant also plans to augment its own Frontier talent pipeline through annual direct hires of Frontier-native talent from American and global universities.

This human capital investment is focused on solving an urgent problem facing enterprises today: most organizations have spent more on AI than on any technology in a generation, and most have little to show for it. Cognizant measures the gap between what AI can deliver and what enterprises actually realize at $4.5 trillion. That gap is not a compute problem. It is a people and process problem, and it will not be closed by provisioning more infrastructure. The required investment is skilling and deploying more Frontier-ready talent into client-oriented delivery to help clients realize a return on their technology investment.

"Closing the AI outcome gap demands talent who not only understands a client's industry deeply but can also reimagine the way work is structured and take end-to-end responsibility for delivering results in collaboration with clients, on any model or cloud the client selects," said Cognizant CEO Ravi Kumar S. "That is what a Frontier workforce does. By taking accountability for outcomes rather than stopping at technology deployment, we can help clients accelerate measurable results while managing risk. Cognizant's industry context and experience position us uniquely to unlock the value that has remained out of reach during this shift toward outcome-based delivery and a new chapter in human capital."

Cognizant's Frontier workforce is model- and cloud-agnostic by design. Its teams build an organization's unique context into whatever stack the client has already chosen, across a partnership footprint that spans Anthropic, OpenAI, Microsoft, Google, AWS, NVIDIA, Salesforce, and ServiceNow. The result is durable capability designed for enterprise ownership and portability across environments, otherwise known as solutions that are geared towards the problems being experienced by our client, not the closest thing a proprietary platform can accomplish.

"AI has exposed 93% of jobs to change, and the associated labor value remains untapped because the workforce architecture built for a pre-AI world cannot capture it. So we rebuilt the architecture for the world we are in now," said Cognizant Chief People Officer, Kathy Diaz. "Industry domain depth is a core strength of Cognizant, and we bring enterprise-scale experience across technology, processes and operations. We know how to take these powerful frontier tools and turn them into real business value, and we are training our workforce to do it at scale."

Cognizant Chief Learning Officer, Thiru Arohi said: "We are developing a new professional identity for the AI era. We are investing in the infrastructure behind this identity: the Academy, the assessment architecture, the certification pathway, and the talent pipeline from campus to senior practitioner. What we are scaling is not headcount, but a workforce capable of closing the outcome gap that no model, platform, or deployment engineer can close alone."

This Frontier model is anchored in six principles: interdisciplinary capability; a direct linkage to customer value; building, deploying, or working alongside agents as routine; end-to-end accountability; delivery through a small operational pod; and a single, unified Cognizant experience for the client. The workforce will be organized as a single premium job family of seven roles across two complementary tracks, Frontier Certified Engineers and Frontier Business Operators:

Frontier Certified Engineers: Frontier Certified Engineers architect and build agentic systems, engineer the retrieval and context layers that keep those systems grounded in domain reality, and orchestrate multi-agent pipelines into live production, remaining accountable for every system they deploy, including ongoing monitoring, tuning and improvement cycles that follow go-live. They are where industry domain expertise, full-stack AI engineering and production accountability converge in a single practitioner. They enter a client environment already fluent in its regulatory constraints, operational failure modes and business logic, and use that fluency to determine not just what AI can do, but what it should do, and how it must be governed to be trusted in alignment with client requirements. Frontier Business Operators: Frontier Business Operators are responsible for delivering operational outcomes in collaboration with client stakeholders in environments where the workforce is simultaneously human and digital, managing agent fleets and human teams against a committed outcome, in real time, with no separation between the two. Their edge is not technical configuration; it is the judgment that comes from having run the operations floors, claims pipelines, and service workflows that AI agents are now being asked to take on. They know how to feed every exception and override back into agent calibration, so the system is continuously refined to improve reliability over time. What sets these roles apart from being forward deployed engineers is permanence, accountability and something that cannot be trained overnight: Cognizant's deep industry domain expertise and the hard-won experience of an AI builder running enterprise operations at scale. The model is already live — a two-person Engineer-and-Operator pod recently reimagined a large food service company's account-management workflow into seventeen production AI agents, reclaiming roughly eleven hours per account manager each week while cutting handoff cycles by about 60 percent and nearly tripling their revenue per engagement.

Underpinning the commitment is a model built to scale and to reach the client. Cognizant stands up local capacity inside client clusters so certified pods deploy close to the work they own, while its global capability centers supply the talent base behind them. The elevation funnel narrows at each stage: from a broad base of AI-fluency skilling across hundreds of thousands of associates, through structured AI-Bridge programs to 40,000 in Frontier certification, credentialed directly by the frontier-model companies, including GitHub Copilot, Google Gemini, Anthropic's Claude, and OpenAI's Codex. Today's announced investment will expand Cognizant's SkillSpring™ capacity, deliver AI-fluency and responsible-AI training across the workforce, and fund embedded client engagements worldwide.

For enterprises, the payoff is measured where it matters most: AI investment converted into business results, delivering value from the technology stack they already run, with accountability through an AI builder firm that lasts well beyond go-live. In committing to the people who deliver those outcomes, Cognizant is making a strategic bet that the defining edge of the AI era will be human and operational, and positioning its clients to pursue the financial return from their technology investment which has eluded them. That is the future of AI: not just capability, but outcomes that endure.

About Cognizant

Cognizant (Nasdaq: CTSH) is an AI Builder and technology services provider, bridging the gap 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, drive tangible outcomes and keep global enterprises ahead in a fast-changing world. See how at www.cognizant.ai or @cognizant.

For more information, contact:

SOURCE Cognizant Technology Solutions

Partnership combines Domyn's chip-to-application sovereign AI infrastructure with Cognizant's enterprise integration expertise and EMEA industry reach, enabling regulated organisations to deploy AI securely on-premise and within sovereign environments

, /PRNewswire/ -- Cognizant (NASDAQ: CTSH) and Domyn, the European leader in sovereign AI infrastructure for regulated industries, have announced a strategic partnership to bring sovereign AI capabilities to enterprises across the EMEA region. The partnership will help organisations in highly regulated sectors deploy powerful AI solutions that keep data within client-controlled environments and support compliance with European regulatory frameworks.

Domyn's end-to-end AI system — spanning compute, proprietary models, governance, and agents —is purpose-built for exactly this challenge, and Cognizant's role as an AI Builder and trusted global systems integrator, with deep EMEA enterprise relationships, makes it the ideal partner to bring these capabilities to scale.

Under the partnership, Domyn will provide the AI infrastructure layer, delivering LLMs that can be deployed within client environments, on-premise or in private cloud configurations, while Cognizant will serve as the application, integration, and domain execution layer. Cognizant will train and adapt Domyn's models into smaller, domain-specific models (SLMs), build agents and applications tailored to specific industry use cases, and manage the legacy data pipeline construction, data cleaning, and model-alignment work required for enterprise deployment. Together, the companies will execute a joint go-to-market strategy targeting organisations across UK & Ireland, DACH, Northern Europe, and Southern Europe and the Middle East.

For enterprise customers, the partnership unlocks a fully integrated sovereign AI proposition. Organisations gain access to cutting-edge AI models and infrastructure without sacrificing control over their data, while benefiting from Cognizant's proven ability to manage complex enterprise change, embed human-in-the-loop compliance frameworks, and deliver measurable business outcomes at scale. As per Gartner®, "Geopolitics is the key driver behind the demand for true sovereign AI solutions and services, which has a negative impact on global cloud providers offering AI services, such as hyperscale cloud providers. Considering the current geopolitical situation, local cloud providers offering AI services will increasingly become relevant competitors and will grow market share." By 2029, geopolitics will drive 50% of cloud AI workloads to sovereign cloud AI deployment models, up from 5% in 2025.1

"Sovereign AI is one of the most significant growth opportunities in EMEA, and one where Cognizant is uniquely positioned to lead," said Manoj Mehta, President, EMEA, Cognizant. "Regulated organisations across Europe need AI that delivers transformational outcomes without compromising on data sovereignty, regulatory compliance, or security. Our partnership with Domyn brings together world-class AI infrastructure and Cognizant's deep expertise in turning that infrastructure into real, industry-specific solutions. Together, we are giving enterprises the confidence to move fast on AI - on their terms and within their borders."

"The next wave of AI in Europe will be won by those who own and control the intelligence at the heart of their business," said Uljan Sharka, CEO at Domyn. "With Cognizant's extensive industry relationships across EMEA, we'll be able to scale our vision and give the most demanding institutions the foundation to move decisively on AI, and truly own the intelligence they're building on."

The partnership aligns with Cognizant's three-vector AI Builder strategy — enabling hyper productivity, industrialising AI, and agentifying the enterprise — bringing more than 60 AI patents, 1,500-plus industry-specific agents, and a dedicated AI Lab across San Francisco and Bengaluru. It also represents an important step in Domyn's mission to help regulated enterprises own, govern and trust the intelligence powering their most critical workflows, with the partnership initially focused on customers across EMEA.

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.ai or @cognizant.

About Domyn
Domyn develops responsible AI for regulated industries, across financial services, government and heavy industry. It supports enterprises with proprietary, fully governable solutions, based on a composable AI architecture, including Large Language Models and domain-specific AI Agents. The company is building one of the largest AI Supercomputers in Regulated Industries in partnership with NVIDIA and the UAE.

1 Gartner, AI Vendor Race: True Sovereign AI Will Define Winners and Losers in the Cloud AI Race by Rene Buest, Fernando Pereiro, 24 February 2026. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

For more information, contact:

U.S.     

Europe / APAC     

India

Name Ben Gorelick     

Name Sarah Douglas     

Name Vipin Nair

Email [email protected]             

Email [email protected]             

Email [email protected] 

SOURCE Cognizant Technology Solutions