Cognizant Technology Solutions reported first‑quarter 2026 revenue of $5.413 billion, a 5.8 % year‑over‑year increase and 3.9 % in constant currency. Adjusted diluted earnings per share rose to $1.40, beating the consensus estimate of $1.33 and representing a $0.07, or 5.3 %, beat. The company’s adjusted operating margin expanded to 15.6 %, up 0.1 percentage point from 15.5 % in Q1 2025, driven largely by higher productivity in AI‑enabled services and operational efficiencies.
The Financial Services segment led growth, posting more than 10 % year‑over‑year growth in constant currency, while bookings surged 21 % to $5.6 billion. Seven large deals were signed during the quarter, and total contract value from large deals grew over 70 % year‑over‑year, underscoring strong demand for Cognizant’s AI and analytics offerings.
Margin expansion was supported by a mix of factors: AI‑enabled services delivered higher margins, favorable movements in the Indian rupee reduced cost pressure, and operational efficiencies from the “Project Leap” cost‑saving program offset a mix shift toward third‑party products and the dilutive impact of recent acquisitions. The company’s focus on AI‑first managed services, reinforced by the acquisition of Astreya, helped maintain a high margin profile.
Management guided for full‑year 2026 adjusted operating margin of 16.0 %–16.2 %, an increase from the prior guidance range, while revenue guidance remained unchanged at 4.0 %–6.5 % in constant currency. The “Project Leap” program is expected to generate $200 – $300 million in savings in 2026, with restructuring costs of $230 – $320 million, and the savings will be reinvested in AI and workforce upskilling.
Cognizant’s AI builder strategy is a central pillar of its growth plan, with more than 5,000 active AI engagements and roughly 40 % of software development now AI‑assisted. The acquisition of Astreya expands the company’s AI‑first managed services capabilities, positioning Cognizant to capture increasing demand for AI‑driven solutions across industries.
"In a complex macroeconomic environment, we delivered first‑quarter revenue growth in the upper half of our guidance range, with sustained bookings momentum and Financial Services again leading performance. We signed seven large deals in the quarter and delivered over 70 % large‑deal total contract value growth year‑over‑year," said CEO Ravi Kumar S. "In Q1, we achieved strong bookings growth of 21 %, expanded our adjusted operating margin year‑over‑year and drove double‑digit adjusted EPS growth that outpaced revenue," added CFO Jatin Dalal. "The Project Leap program we announced today is a key step toward accelerating our vision of the operating model of the future and funding continued investments in AI, competitive offerings and the re‑skilling of our workforce," he added.
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