01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Cognizant Technology Solutions Corporation reported solid financial results for the second quarter and the first half of 2026.
Revenue increased by 4.5% year-over-year for the quarter, reaching $5.48 billiona, driven by growth in Financial Services and the ramp-up of new large deals, supported by demand for AI and automation services. The company also benefited from its integrated offerings strategy and recent acquisitions, which contributed to revenue growth. Net income for the quarter was $636 million, a slight decrease of 1.4% compared to the prior year, impacted by restructuring charges and other factors.
Operationally, Cognizant initiated "Project Leap" in Q2 2026, a strategic program aimed at accelerating transformation and improving productivity through AI capabilities and workforce upskilling, incurring $84 millionb in related charges. The company also saw a significant positive impact from the reversal of an $81 million liability related to India's Defined Contribution Obligation.
Despite increased investments in AI and acquisitions, the company demonstrated strong operational efficiency, with a slight increase in its GAAP operating margin to 15.9%c for the quarter. Looking ahead, Cognizant remains focused on client transformations, particularly in AI, and continues to invest in its capabilities to meet evolving market demands.
02—Key points
Key Highlights
- Total revenue for Q2 2026 increased by 4.5% year-over-year to $5.48 billion, with a 4.1% increase in constant currency.
- Net income for Q2 2026 was $636 million, a 1.4% decrease compared to $645 million in Q2 2025.
- The company initiated "Project Leap" in Q2 2026, incurring $84 million in restructuring charges, with total expected costs of $230-$320 million.
- A beneficial impact of $81 million was recognized from the reversal of a portion of the India Defined Contribution Obligation liability.
- Cognizant completed the acquisition of Astreya Partners, Inc. for approximately $634 million.
- Total assets grew slightly to $20.825 billion as of June 30, 2026, compared to $20.692 billion as of December 31, 2025.
- Stock repurchases totaled $1.153 billion in Q2 2026, including $500 million through Accelerated Share Repurchase (ASR) agreements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $5.48B$5.25B | +4.5% |
| SG&A Expenses | $728.00M$810.00M | −10.1% |
| Operating Income | $874.00M$817.00M | +7.0% |
| Net Income | $636.00M$645.00M | −1.4% |
| EPS (Basic) | $1.36$1.31 | +3.8% |
| EPS (Diluted) | $1.36$1.31 | +3.8% |
| Shares Outstanding (Basic) | 466.00M492.00M | −5.3% |
| Shares Outstanding (Diluted) | 466.00M492.00M | −5.3% |
05—Questions
Frequently Asked Questions
What is the financial performance of Cognizant for Q2 2026?
For the second quarter of 2026, Cognizant reported a revenue of $5.48 billion, an increase of 4.5% year-over-year. Net income was $636 million. The company's operating margin improved slightly to 15.9%. Key initiatives include 'Project Leap' for transformation and AI investments.
What are the significant events or initiatives undertaken by Cognizant in Q2 2026?
Cognizant launched 'Project Leap,' a transformation program focused on AI capabilities and workforce upskilling, incurring $84 million in related charges. They also completed the acquisition of Astreya Partners, Inc. and significantly increased share repurchases, including through ASR agreements.
How has Cognizant's balance sheet evolved?
Total assets increased to $20.825 billion as of June 30, 2026, from $20.692 billion at the end of 2025. Key changes include a substantial increase in Goodwill ($8.083 billion from $7.106 billion) reflecting acquisitions, and a decrease in cash and cash equivalents ($1.038 billion from $1.901 billion) due to share repurchases and acquisitions. Long-term debt also increased significantly.
What is the outlook for Cognizant's business?
Cognizant anticipates continued client focus on AI-driven transformations and demand for services delivering productivity and cost savings. The company plans significant investments in its AI capabilities amidst a competitive and rapidly evolving market. They also acknowledge potential impacts from tax law changes and regulatory environments.
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