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Cognizant Technology Solutions (CTSH)
NASDAQ:CTSH
Earnings Data
Report Date
May 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.33Last Year’s EPS
1.23Same Quarter Last Year
Moderate Buy
Based on 17 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted a year of profitable growth with strong large‑deal momentum, above‑guide revenue and margin performance, robust free cash flow, accelerated AI adoption, and strategic M&A that expanded capabilities (notably in Azure and defense). Management acknowledged near‑term headwinds including margin dilution from compensation and portfolio mix, modest ACV softness in smaller deals, a complex macro/discretionary environment, and one‑time India labor code impacts. Guidance for 2026 is constructive but conservative (moderate revenue growth range and limited margin expansion). Overall, the positive execution on large deals, AI adoption, productivity gains, and cash returns outweigh the challenges described, supporting a constructive outlook.Company Guidance
Revenue Growth — Q4 and Full Year
Q4 revenue of $5.3B grew 3.8% year‑over‑year in constant currency (all organic). Full‑year 2025 revenue was $21.1B, up 6.4% in constant currency, surpassing $20B and the high end of guidance.
Financial Services Outperformance
Financial services led growth with Q4 constant currency revenue up ~9% year‑over‑year and full‑year growth of ~7% — the highest annual level since 2016 for the company.
Strong Large‑Deal Momentum
Q4 bookings rose 9% YoY and trailing‑12‑month bookings grew 5% (book‑to‑bill ~1.3). The company signed 12 deals in Q4 with TCV > $100M including one > $1B; 2025 saw 28 deals > $100M (combined TCV up ~50% YoY) and five mega deals ≥ $500M. Q4 large‑deal TCV was ~60% greater than a year ago.
Margin and Profitability Improvement
Q4 adjusted operating margin was 16.0%, up ~30 basis points YoY. Full‑year adjusted operating margin was 15.8%, up 50 basis points YoY, demonstrating profitable growth while increasing investments in people.
EPS and Cash Generation
Q4 adjusted diluted EPS was $1.35 (+12% YoY) and full‑year adjusted EPS was $5.28 (+11% YoY). Full‑year free cash flow was $2.7B (over 100% of net income). The company returned ~$2.0B to shareholders in 2025.
AI Adoption and Productivity Metrics
Over 4,000 AI engagements; >30% of developer effort in software development cycles is AI‑assisted/agent tech; 32% of code is AI‑assisted. Trailing‑12‑month revenue per employee rose ~5% and adjusted operating income per employee rose ~8%.
Portfolio & Capability Expansion via M&A
Closed acquisition of Three Cloud (adds >1,200 Azure specialists) and continued integration of Belcan with synergy pipeline in aerospace & defense; secured position on Missile Defense Agency shield IDIQ (ceiling $150B). Q1 2026 guidance includes ~100 bps benefit from Three Cloud; full‑year 2026 inorganic contribution ~150 bps.
BPO and Digital Engineering Momentum
BPO business grew ~9% YoY in Q4 and for the year, reflecting demand for GenAI‑powered automation. Digital engineering practices grew ~8% YoY in Q4 and for the year, driven by proprietary platforms (FlowSource, neuroengineering) and AI‑led modernization.
Operational and Talent Investments
Promoted >35,000 associates in 2025, added >16,000 associates in India, and reported large AI skilling efforts (management cited ~340,000 associates completed AI skilling; CFO referenced ~260,000 as part of broader skilling metrics). Company funded its highest discretionary bonus level since 2018 and plans material campus hiring in 2026.
Balance Sheet and Capital Allocation Strength
Ended quarter with $1.9B cash & short‑term investments (net cash ~$1.3B) excluding ~$730M restricted cash in escrow for Three Cloud; strong free cash flow profile allows continued share repurchases and M&A optionality.
CTSH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CTSH Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 04, 2026 | $74.12 | $76.32 | +2.97% |
Oct 29, 2025 | $67.18 | $71.02 | +5.71% |
Jul 30, 2025 | $72.52 | $70.77 | -2.41% |
Apr 30, 2025 | $72.28 | $73.91 | +2.26% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Cognizant Technology Solutions (CTSH) report earnings?
Cognizant Technology Solutions (CTSH) is schdueled to report earning on May 06, 2026, Before Open (Confirmed).
What is Cognizant Technology Solutions (CTSH) earnings time?
Cognizant Technology Solutions (CTSH) earnings time is at May 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CTSH EPS forecast?
CTSH EPS forecast for the fiscal quarter 2026 (Q1) is 1.33.
