Cognizant Technology Solutions (CTSH)
NASDAQ:CTSH
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Earnings Data
Report Date
Aug 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.38Last Year’s EPS
1.31Same Quarter Last Year
Moderate Buy
Based on 17 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple clear operational and strategic positives — strong bookings (21% YoY), continued revenue growth (3.9% CC), EPS growth (+14%), accelerating AI engagements and platform/IP momentum, and a structured Project LEAP program to drive future cost savings and margin expansion. Offsetting these positives were near-term execution and market pressures: a Q1 gross margin decline (-80 bps) driven by investments and comp costs, caution on discretionary spending, ACV flatness, a modest Q1 free cash flow read, and one-time costs for workforce restructuring. On balance, the company showed strategic momentum and financial discipline while acknowledging transitional costs and macro uncertainty.Company Guidance
Revenue Growth
Q1 revenue of $5.4 billion grew 3.9% year-over-year in constant currency, led by North America and ramp of recently won large deals.
Strong Bookings and Large Deal Momentum
Q1 bookings grew 21% year-over-year; signed 7 large deals (TCV > $100M) including 1 mega deal > $500M. Trailing 12-month bookings grew 11% with book-to-bill of 1.4.
Profitability and EPS Outperformance
Adjusted operating margin expanded for the fifth consecutive quarter to 15.6% in Q1 (+10 basis points year-over-year). Adjusted diluted EPS was $1.40, up ~14% year-over-year, outpacing revenue growth.
AI & Platform Momentum
Cognizant reported >5,000 AI engagements (up from ~4,000 in December), 40% of code is AI-assisted, AI Labs received 3 U.S. patents (65 U.S., 88 global total), and the company launched a Cognizant Innovation Network to back early-stage AI startups.
Project LEAP Savings and Margin Guidance Lift
Project LEAP expected to deliver $200M–$300M of savings in 2026 (larger benefit in 2027). Company raised 2026 adjusted operating margin guidance to 16.0%–16.2% (implying 20–40 bps of YoY expansion).
M&A and Strategic Acquisitions
Announced definitive agreement to acquire Atria (AI infrastructure, data center, workplace and network services). Recent acquisitions expected to contribute ~150 basis points to revenue growth in 2026.
Capital Allocation and Balance Sheet
Returned about $600M of capital to shareholders in Q1. Cash and short-term investments totaled $1.5B (net cash ~$949M). Full-year plan to return ~$1.6B to shareholders including $1.0B for share repurchases. Free cash flow conversion guidance remains 90%–100% of net income.
Forward Guidance
Q2 revenue growth guidance of 3.2%–4.7% YoY (constant currency); full-year revenue guidance unchanged at 4.0%–6.5% CC. EPS guidance $5.63–$5.77 (7%–9% growth).
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 |
|---|---|---|---|
Apr 29, 2026 | $55.12 | $54.70 | -0.76% |
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% |
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 Aug 05, 2026, Before Open (Confirmed).
What is Cognizant Technology Solutions (CTSH) earnings time?
Cognizant Technology Solutions (CTSH) earnings time is at Aug 05, 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 (Q2) is 1.38.
