Cognizant Q4 revenue slightly beats expectations, EPS exceeds

Cognizant Technology Solutions

04/02/2026 11:37

Overview

Professional services firm's Q4 revenue slightly beat analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company plans to return $1.6 bln to shareholders in 2026

Outlook

Company expects 2026 revenue growth of 4.9% to 7.4%

Cognizant forecasts 2026 adjusted EPS of $5.56 to $5.70

Company plans to return $1.6 bln to shareholders in 2026

Result Drivers

AI INVESTMENTS - CEO Ravi Kumar S highlighted investments in AI platforms and partnerships as key to signing 28 large deals in 2025

ACQUISITION IMPACT - Acquisition of Belcan added approximately 260 basis points to full-year revenue growth

BOOKINGS GROWTH - Fourth quarter bookings increased 9% year-over-year, driven by large deals including two mega deals

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$5.33 bln
$5.31 bln (19 Analysts)
Q4 Adjusted EPS
Beat
$1.35
$1.32 (20 Analysts)
Q4 EPS
$1.34
Q4 Adjusted Operating Margin
16.00%
Q4 Operating Income
$853 mln
Q4 Operating Margin
16.00%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 16 "hold" and 1 "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 $90.00, about 20.8% above its February 3 closing price of $74.50

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn6h9h85a

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.)