Cognizant Technology Solutions Corporation (CTSH) Earnings Call Transcripts

Cognizant Technology Solutions Corporation's Latest Earnings Call - Q3 FY2026

In the third quarter of fiscal year 2026, Cognizant Technology Solutions (CTSH:US) reported revenue of $5.7 billion, reflecting a year-over-year growth of 4.8% in constant currency. Adjusted operating margin reached 16.3%, marking the highest level in four years, while adjusted EPS increased by 7% to $1.49. However, management revised full-year revenue growth guidance down to a range of 4% to 4.4%, citing macroeconomic uncertainties impacting discretionary spending, particularly in healthcare and consumer-facing sectors.

Reported metrics

Guidance from management

Cognizant expects fourth quarter revenue growth of 3.2% to 4.7% year-over-year in constant currency, with full-year guidance adjusted to 4% to 4.4% growth. Adjusted operating margin guidance is narrowed to approximately 16.1%.

What management said

Sure. So I'll take the question. Effectively, we have spoken about 4 services, which are which we can see are beginning to see some AI tailwind services and pickup. And they are BPO infrastructure cybersecurity and industry solutions, combined this account for 40% of our portfolio, and they are growing faster. And that, of course, assumes that the rest of the 60% is not growing as fast. But if you see it as a brick i...

Sure. So you are right. I think the overall scope of lower number has a reduction in personnel costs. And that is because we are investments, training keenness and ability to transform ourselves is beginning to take effect. And therefore, we can repurpose and redeploy a lot more than what we originally anticipated. Ravi spoke about 25,000 employees who have gone through and advanced AI certification in Cognizant. So ...

What analysts pressed on

Analysts expressed concerns regarding the impact of macroeconomic conditions on discretionary spending, particularly in healthcare and consumer-facing sectors. There were also inquiries about the sustainability of bookings growth and the implications of revised guidance on future performance.

Main topics on the call

• Revenue Growth and Guidance Adjustment — Cognizant's revenue grew 4.8% year-over-year in constant currency, driven by strong performance in financial services, which saw a 12% increase. However, management adjusted full-year guidance to 4% to 4.4% from a previo...
• Strong Performance in Financial Services — Financial services continued to show robust growth, achieving 12% year-over-year growth for the third consecutive quarter. Management noted, "Financial Services accelerated to 12% year-over-year constant currency growth,...
• AI Builder Strategy — Cognizant is advancing its AI Builder strategy, which aims to enhance enterprise value through AI capabilities. Management stated, "We believe our AI Builder strategy expands the opportunity ahead and opens multiple reve...
• Margin Expansion — The adjusted operating margin increased to 16.3%, representing the seventh consecutive quarter of year-over-year expansion. Management noted, "We are excited about the fact that we are continuing this for 7 quarters in a...

Read the full Cognizant Technology Solutions Corporation transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 60 Cognizant Technology Solutions Corporation earnings call transcripts on record, spanning February 5, 2020 to October 29, 2026. Based on this history, Cognizant Technology Solutions Corporation reports quarterly. The most recent call on file is dated October 29, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

CTSH

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

IT Services

Calls on record

60

First call

February 5, 2020

Most recent

October 29, 2026

Reporting cadence

quarterly