Cognizant Technology Solutions Corporation (CTSH) Earnings Call Transcripts

Cognizant Technology Solutions Corporation's Latest Earnings Call - Q2 FY2026

Cognizant Technology Solutions Corporation (CTSH:US) reported solid results for Q2 2026, with revenue of $5.5 billion, reflecting a 4.1% year-over-year growth in constant currency. Adjusted EPS increased to $1.37, up 5% year-over-year. Management revised full-year revenue guidance to a range of 4% to 5.5% growth, down from previous expectations, citing ongoing macroeconomic uncertainties. The company continues to focus on AI-driven growth, with strong performance in Financial Services, which grew nearly 12% year-over-year, and the signing of seven large deals, each with TCV exceeding $100 million.

Reported metrics

Guidance from management

For Q3 2026, management expects revenue growth of 3.8% to 5.3% year-over-year in constant currency. Full-year revenue guidance has been revised to 4% to 5.5% growth, reflecting macroeconomic uncertainties.

What management said

Sure, Grant. So we continue to execute the program. We have taken approximately $84 million of cost in quarter 2, of which $50 million, $55 million is from -- related with employee severance and remaining is from -- related with facilities and software and some of that. As we have -- as you know, we have baked in the savings from the program as part of our guidance range, and we believe we are executing well towards ...

And we get full year benefit next year. And it also reshapes the cost of technology deployment in the market. To a large extent, this is about margins, but it's equally about growth, can we get more growth using a baseline where productivity is shared with the clients.

What analysts pressed on

Analysts expressed concerns about the cautious demand environment and its impact on future growth, particularly in the Health Sciences segment. There were also questions regarding the sustainability of large deal momentum and the potential impact of Project LEAP on operational efficiency and margins.

Main topics on the call

• Revenue Growth and Guidance — Cognizant achieved revenue growth of 4.1% year-over-year, driven by strong performance in North America and Financial Services. Management revised full-year revenue guidance to 4% to 5.5% growth, citing a cautious demand...
• Strong Performance in Financial Services — Financial Services segment grew nearly 12% year-over-year, marking its second consecutive quarter of over 10% growth. This segment is seen as a leading indicator for other industries, with Ravi Kumar noting, "Financial S...
• Large Deal Momentum — Cognizant signed seven large deals in the quarter, each with a TCV of over $100 million, including three new logos. This reflects strong bookings momentum, with trailing 12-month bookings increasing by 5%. Jatin Dalal hi...
• Adjusted Operating Margin Expansion — The adjusted operating margin was reported at 16%, up 40 basis points year-over-year, demonstrating continued operational efficiency. Management noted that "operational efficiency and favorable currency movements more th...

Read the full Cognizant Technology Solutions Corporation transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 57 Cognizant Technology Solutions Corporation earnings call transcripts on record, spanning February 5, 2020 to July 29, 2026. Based on this history, Cognizant Technology Solutions Corporation reports quarterly. The most recent call on file is dated July 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

57

First call

February 5, 2020

Most recent

July 29, 2026

Reporting cadence

quarterly