The raised margin guidance and strong bookings momentum signal improving operational execution. Watch for margin expansion in upcoming quarters as Project Leap savings materialize. The stock may re-rate on the back of sustained double-digit adjusted EPS growth and robust deal pipeline.
Price Chart
Executive Summary
Cognizant delivered Q1 2026 adjusted EPS of $1.40, beating consensus of $1.33 by 5.3%, with revenue of $5.41B in the upper half of guidance. The company raised its full-year adjusted operating margin guidance to 16.0%-16.2% (from 15.9%-16.1%) and adjusted EPS guidance to $5.63-$5.77, while announcing a $230M-$320M restructuring program (Project Leap) expected to generate $200M-$300M in 2026 savings. TTM bookings grew 11% to $29.6B with 21% quarterly growth.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $5.413B (+5.8% YoY, +3.9% CC)
- Adjusted EPS $1.40 vs consensus $1.33 (+5.3% beat)
- GAAP EPS $1.39 (+3.7% YoY)
- Adjusted operating margin 15.6% (+10 bps YoY)
- Full-year adjusted operating margin guidance raised to 16.0%-16.2%
- Full-year adjusted EPS guidance raised to $5.63-$5.77 (prev $5.56-$5.70)
- TTM bookings $29.6B (+11% YoY), Q1 bookings +21%
- Project Leap restructuring: $230M-$320M costs, $200M-$300M in-year savings
- 7 large deals signed in Q1 including 1 mega deal
- Financial Services segment grew 12.4% YoY (10.2% CC)
Financial Impact
Adjusted EPS beat of ~$0.07 (~5.3%) and raised guidance imply positive forward momentum; restructuring savings could add ~20-30 bps to margins
Risk Factors
- Restructuring execution risk and potential disruption to operations
- Constant currency revenue growth decelerated to 3.9% from 8.2% a year ago
- Health Sciences segment revenue declined 0.9% CC
- GAAP operating margin decreased 110 bps YoY to 15.6%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001058290-26-000015 |
| Exhibit: exhibit9933312026.htm | 0001058290-26-000015 |
| Exhibit: exhibit9923312026.htm | 0001058290-26-000015 |
| Document: ctsh-20260429.htm | 0001058290-26-000015 |
| Document: 0001058290-26-000015-index-headers.html | 0001058290-26-000015 |
| Document: 0001058290-26-000015-index.html | 0001058290-26-000015 |
| Document: 0001058290-26-000015.txt | 0001058290-26-000015 |
| 8-K Data (Synthetic) | 0001058290-26-000015 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 28d ago | Insider Cluster | $62.31 $64.10 | ▲ +2.87% | ▲ +4.08% | $58.51 (−6.10%) |
Aug 5, 2026 8w ago | Insider Cluster | $56.89 $59.28 | ▲ +4.20% | ▲ +2.98% | $58.51 (+2.85%) |
Jul 29, 2026 9w ago | 8-K | $55.97 $55.78 | ▼ −0.34% | ▼ −5.87% | $58.51 (+4.54%) |
May 21, 2026 19w ago | 8-K | $52.28 $55.74 | ▲ +6.62% | ▲ +4.77% | $58.51 (+11.93%) |
May 21, 2026 19w ago | Court Ruling | $52.32 $55.76 | ▲ +6.57% | ▲ +4.71% | $58.51 (+11.83%) |
May 18, 2026 19w ago | 8-K | $51.40 $51.81 | ▲ +0.80% | ▼ −0.82% | $58.51 (+13.84%) |
Apr 29, 2026 22w ago | 8-K | $54.50 $51.27 | ▼ −5.93% | ▼ −9.04% | $58.51 (+7.36%) |
Apr 17, 2026 24w ago | DEFA14A | $61.27 $55.11 | ▼ −10.05% | ▼ −10.60% | $58.51 (−4.50%) |
Feb 28, 2026 30w ago | Institutional Cluster | $63.44 $64.61 | ▼ −1.84% | ▼ −3.05% | $58.51 (+7.77%) |
Feb 26, 2026 31w ago | 8-K | $64.97 $65.77 | ▲ +1.23% | ▲ +2.36% | $58.51 (−9.94%) |
US Market Status
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