| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 5.5K | 1.3% | 4.5% |
| Total Income | 5.5K | 1.3% | 4.5% |
| Expenditure | 4.6K | 0.8% | 4.0% |
| PBT | 875.00 | 0.9% | 3.9% |
| Net Profit | 636.00 | 3.9% | 1.4% |
| OPM | 15.95% | 0.37pp | 0.37pp |
| NPM | 11.60% | 0.63pp | 0.69pp |
| EPS | 1.36 | 2.2% | 3.8% |
Cognizant Reports Q2 2026 Results with 4.5% Revenue Growth
29 Jul 2026 · 29 Jul, 4:06 pm
Summary
Cognizant reported strong second quarter 2026 financial results, with revenue reaching $5.5 billion, up 4.5% year-over-year. The company demonstrated improved profitability with operating margins increasing year-over-year. Management expressed confidence in their AI strategy, noting continued organic revenue growth momentum and a second consecutive quarter of double-digit growth in their largest segment, Financial Services. The company also raised its full-year 2026 Adjusted Diluted EPS guidance, signaling a positive outlook.
Key Highlights
- 1
Cognizant reported revenue of $5.5 billion for the second quarter of 2026, representing a 4.5% increase year-over-year.
- 2
The company achieved an operating margin of 15.9%, an increase of 30 basis points year-over-year, with an Adjusted Operating Margin of 16.0%, up 40 basis points.
- 3
GAAP EPS for the quarter was $1.36, a 3.8% increase year-over-year, while Adjusted EPS rose 4.6% to $1.37.
- 4
Trailing twelve-month bookings reached $29.1 billion, a 5% increase year-over-year, with a book-to-bill ratio of approximately 1.3x.
- 5
The company revised its 2026 constant currency revenue growth guidance to 4.0% to 5.5% year-over-year.
- 6
Full-year 2026 Adjusted Diluted EPS guidance was increased to $5.70 to $5.82, reflecting 8% to 10% year-over-year growth.
- 7
Financial Services segment saw a second consecutive quarter of double-digit year-over-year growth.
Management Comments
Ravi Kumar S
Our organic revenue growth momentum continued in the second quarter and was at the high end of our expectations. We are helping our clients close the AI velocity gap by pairing deep industry expertise with engineering, infrastructure and data modernization capabilities while safeguarding their data and IP. We are doing this by scaling our Frontier workforce and reskilling for the future. We are confident our strategy is resonating with clients, as reflected in a second consecutive quarter of double-digit year-over-year growth in Financial Services, our largest and most mature segment. As organizations shift from AI experimentation to enterprise-scale execution, we believe the market opportunity ahead is larger than ever, and we're positioning Cognizant to lead in this next era.
Jatin Dalal
Our second quarter results reflect disciplined execution and the resilience of our operating model. We delivered 4.1% constant currency revenue growth and 40 basis points of adjusted operating margin expansion year-over-year, despite a complex environment. In the first half of 2026, we deployed $1.6 billion on share repurchases and $1.3 billion on acquisitions aligned with our AI builder strategy. We remain focused on operational rigor and consistent margin expansion while funding growth investments and deploying capital strategically.
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