Cognizant Q1 revenue meets estimates, adjusted EPS beats

Cognizant Technology Solutions

29/04/2026 11:39

Overview

U.S. AI builder and tech services firm's Q1 revenue rose 5.8%, meeting analyst expectations

Adjusted EPS for Q1 grew 13.8% and beat analyst expectations

Company launched Project Leap, targeting $200-$300 mln in 2026 cost savings

Outlook

Company expects Q2 revenue of $5.45 bln to $5.52 bln

Cognizant sees full-year 2026 revenue of $22.11 bln to $22.64 bln

Company raises 2026 adjusted operating margin guidance to 16.0% to 16.2%

Result Drivers

BOOKINGS MOMENTUM - Q1 bookings grew 21% year-over-year, with seven large deals signed, supporting revenue growth

SEGMENT PERFORMANCE - Financial Services led growth with 12.4% y/y revenue increase, while Communications, Media and Technology also grew 8.1%

THIRD-PARTY PRODUCT SALES - Sales of third-party products in North America contributed 140 basis points to overall revenue growth, with notable impact in Communications, Media and Technology and Financial Services segments

Company press release: ID:nPn96RRVHa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Meet
$5.41 bln
$5.41 bln (20 Analysts)
Q1 Adjusted EPS
Beat
$1.40
$1.33 (21 Analysts)
Q1 EPS
$1.39
Q1 Adjusted Operating Margin
15.60%
Q1 Operating Income
$843 mln
Q1 Operating Margin
15.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Cognizant Technology Solutions Corp is $83.00, about 50.6% above its April 28 closing price of $55.12

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)