Cognizant Q2 2026: revenue up 4.5%, EPS misses, full-year EPS guidance up
Cognizant grew revenue 4.5% to $5.48 billion and lifted adjusted operating margin to 16.0%, but GAAP EPS of $1.36 came in below the $1.4039 consensus and second-quarter bookings fell 6%. Our view is Neutral: the profit engine is improving and management increased full-year adjusted EPS guidance to $5.70–$5.82, yet growth is narrowing into Financial Services and is partly helped by reselling third-party products.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $1.36 was up 3.8% from $1.31 a year ago, and adjusted EPS of $1.37 was up 4.6%, but both trailed the $1.4039 consensus. Net income actually fell to $636 million from $645 million; the per-share gain came from a shrinking share count, down to 466 million diluted shares from 492 million. Buybacks, not operating profit, are doing part of the work here.
Revenue of $5.48 billion rose 4.5% year over year, or 4.1% in constant currency, and management called the growth "at the high end of our expectations." The mix is lopsided: Financial Services grew 12.0%, while Health Sciences grew 1.4%, Products and Resources 1.2% and Communications, Media and Technology 1.5%. Gross margin was 33.4%, leaving $1.83 billion of gross profit before $728 million of selling, general and administrative costs.
For the third quarter, management guided revenue to $5.60–$5.68 billion, a midpoint of $5.64 billion and growth of 3.4% to 4.9% — a step down from the 4.5% just reported. Full-year adjusted operating margin guidance was unchanged at 16.0%–16.2%, and full-year adjusted diluted EPS guidance was increased to $5.70–$5.82, or 8% to 10% growth. Full-year constant-currency revenue growth guidance was revised to 4.0% to 5.5%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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