01—Abstract
Summary
Summary of the 8-K filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Cognizant Technology Solutions Corporation (CTSH) reported its third-quarter 2026 financial results, demonstrating steady revenue growth and improved profitability metrics.
Revenue increased by 4.6% year-over-year to $5.7 billiona, with a notable 12% growth in the Financial Services segment. The company also achieved an adjusted operating margin expansion of 30 basis points year-over-year, reaching 16.3%, and reported strong adjusted diluted EPS growth of 7.2% to $1.49. Management provided an optimistic outlook, revising full-year 2026 constant currency revenue growth guidance to 4.0% to 4.4% and reiterating adjusted operating margin guidance of approximately 16.1%.
The company continues to invest in AI capabilities, with over 50%b of its code now AI-assisted, and is actively engaged in strategic client wins and partnerships across various industries. Capital allocation remains a focus, with significant share repurchases and dividend payments made during the quarter.
02—Key points
Key Highlights
- Revenue for Q3 2026 reached $5.7 billion, a 4.6% increase year-over-year (4.8% in constant currency).
- Financial Services segment experienced strong double-digit revenue growth of 12% year-over-year.
- Adjusted Operating Margin improved by 30 basis points year-over-year to 16.3%, demonstrating operational efficiency.
- Adjusted Diluted EPS grew 7.2% year-over-year to $1.49, indicating enhanced profitability.
- Full-year 2026 revenue growth guidance revised to 4.0%-4.4% in constant currency, with projected Adjusted Operating Margin of approximately 16.1%.
- Trailing twelve-month bookings increased 4% year-over-year to $28.7 billion, representing a book-to-bill ratio of approximately 1.3x.
- Company continues to invest in AI, with over 50% of code AI-assisted and over 95,000 associates holding AI certifications.
03—Questions
Frequently Asked Questions
What was Cognizant's revenue performance in the third quarter of 2026?
Cognizant reported revenue of $5.7 billion for the third quarter of 2026, representing a 4.6% increase year-over-year. In constant currency, the growth was 4.8%.
How did Cognizant's profitability trend in Q3 2026?
The company showed improved profitability, with its Adjusted Operating Margin expanding by 30 basis points year-over-year to 16.3%. Adjusted Diluted Earnings Per Share (EPS) also grew by 7.2% year-over-year to $1.49.
What is Cognizant's updated guidance for the full year 2026?
Cognizant updated its full-year 2026 guidance to expect constant currency revenue growth between 4.0% and 4.4%. The company reiterated its guidance for an Adjusted Operating Margin of approximately 16.1% and anticipates Adjusted Diluted EPS to be in the range of $5.72 to $5.79, representing 8% to 10% year-over-year growth.
What are the key drivers of growth and investment for Cognizant?
Key growth drivers include strong performance in the Financial Services segment and investments in AI. Cognizant highlighted that over 50% of its code is now AI-assisted and that it has over 95,000 associates with AI badges and certifications. The company is also actively pursuing strategic client wins and partnerships, such as extensions with Gilead Sciences and new agreements with EBRD and Travelport.
04—Continue