Cognizant Q2 revenue meets on financial services growth

Cognizant Technology Solutions

29/07/2026 11:42

Overview
U.S. AI and tech services firm's Q2 revenue grew 4.5%, meeting analyst expectations
Adjusted EPS for Q2 slightly missed analyst consensus
Company repurchased $1.1 bln in shares and completed Astreya acquisition in Q2

Outlook
Cognizant expects Q3 revenue of $5.60-$5.68 bln, growth of 3.4%-4.9%
Company sees 2026 revenue at $22.04-$22.35 bln, growth of 4.4%-5.9%
Cognizant raises 2026 adj EPS guidance to $5.70-$5.82, growth of 8%-10%

Result Drivers
FINANCIAL SERVICES GROWTH - Double-digit year-over-year revenue growth in Financial Services segment supported overall results, per CEO Ravi Kumar S
AI-LED CLIENT DEMAND - Company cited demand for AI transformation and data modernization as key drivers, supported by investments in workforce reskilling and platform partnerships
DISCIPLINED EXECUTION - Management attributed margin expansion and steady growth to operational rigor and resilience in a complex environment, per CFO Jatin Dalal

Company press release: ID:nPn9Njq6La

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Meet
$5.48 bln
$5.48 bln (21 Analysts)
Q2 Adjusted EPS
Miss
$1.37
$1.38 (22 Analysts)
Q2 EPS
 
$1.36
 
Q2 Adjusted Operating Margin
 
16.00%
 
Q2 Operating Income
 
$874 mln
 
Q2 Operating Margin
 
15.90%
 

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 $63.00, about 25.2% above its July 28 closing price of $50.31
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
July 28 - Exlservice Q2 revenue beats estimates
July 29 - Sopra Steria raises growth target on strong European AI, cybersecurity demand
July 27 - Kforce Q2 revenue slightly beats estimates as Flex sales grow

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.)