| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 5.4K | 5.8% |
| Total Income | 5.4K | 5.8% |
| Expenditure | 4.6K | 7.2% |
| PBT | 867.00 | 0.6% |
| Net Profit | 662.00 | 0.1% |
| OPM | 15.57% | 1.10pp |
| NPM | 12.23% | 0.73pp |
| EPS | 1.39 | 3.7% |
Cognizant Reports Q1 2026 Revenue of $5.4 Billion, Up 5.8% Y/Y
03 May 2026 · 3 May, 6:22 pm
Summary
Cognizant reported first quarter 2026 revenue of $5.4 billion, a 5.8% increase year-over-year, or 3.9% in constant currency. The company's adjusted EPS grew by 13.8% year-over-year to $1.40. Bookings showed strong growth, increasing 21% year-over-year, driven by seven large deals. The company has updated its full-year adjusted operating margin guidance to 16.0% to 16.2%.
Key Highlights
- 1
Cognizant's revenue for the first quarter of 2026 reached $5.4 billion, reflecting a 5.8% increase year-over-year, or 3.9% in constant currency.
- 2
The company's operating margin stood at 15.6%, a decrease of 110 basis points year-over-year, while the adjusted operating margin increased by 10 basis points to 15.6%.
- 3
GAAP EPS for Q1 2026 was $1.39, representing a 3.7% increase year-over-year, and adjusted EPS increased by 13.8% to $1.40.
- 4
Trailing 12-month bookings increased by 11% year-over-year to $29.6 billion, driven by a 21% growth in the first quarter.
- 5
The company signed seven large deals in the first quarter, contributing to the strong bookings performance.
- 6
Cognizant's 2026 constant currency revenue growth guidance remains unchanged at 4.0% to 6.5%.
- 7
The 2026 adjusted operating margin guidance has been increased to 16.0% to 16.2%, reflecting a year-over-year expansion of 20 to 40 basis points.
Management Comments
Ravi Kumar S
“In a complex macroeconomic environment, we delivered first quarter revenue growth in the upper half of our guidance range, with sustained bookings momentum and Financial Services again leading performance. We signed seven large deals in the quarter and delivered over 70% large deal total contract value growth year-over-year. We believe our AI builder strategy, deep industry expertise and scaled partnership ecosystem uniquely position us to bridge the 'AI Velocity Gap' by helping clients convert their significant AI investments into tangible business outcomes.”
Jatin Dalal
“In the first quarter, we achieved strong bookings growth of 21%, expanded our adjusted operating margin year-over-year and drove double-digit adjusted EPS growth that outpaced revenue. The Project Leap program we announced today is a key step toward accelerating our vision of the operating model of the future and funding continued investments in AI, competitive offerings and the re-skilling of our workforce.”
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