Revenue deceleration and a lowered full-year top-line guide overshadow the in-line quarter and EPS guidance bump from buybacks. Q3 revenue guidance implies continued slowing, which may pressure the stock if organic trends don't stabilize. Monitor Q3 earnings in late October for booking momentum and margin execution under Project Leap.
Price Chart
Executive Summary
Cognizant reported Q2 2026 revenue of $5.48B (+4.5% YoY) and adjusted EPS of $1.37, in line with consensus but slightly below the $1.38 estimate. Full-year revenue guidance was lowered to $22.04-$22.35B (4.4%-5.9% YoY) from prior $22.11-$22.64B, while adjusted EPS guidance was raised to $5.70-$5.82 (8%-10% YoY) driven by aggressive share buybacks and cost cuts under Project Leap. The mix of slowing top-line growth and EPS improvement via financial engineering creates a mixed signal.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $5,481M, +4.5% YoY (4.1% CC), in line with $5.48B consensus
- GAAP diluted EPS $1.36 (+3.8% YoY); Adjusted EPS $1.37 (+4.6% YoY) vs $1.38 consensus (small miss)
- FY 2026 revenue guidance lowered to $22.04-$22.35B (4.4%-5.9% YoY) from prior $22.11-$22.64B (4.8%-7.3%)
- FY 2026 adjusted EPS guidance raised to $5.70-$5.82 (8%-10% YoY) from prior $5.63-$5.77 (7%-9%)
- Q3 2026 revenue guidance $5.60-$5.68B (3.4%-4.9% YoY, 3.8%-5.3% CC)
- TTM bookings $29.1B, +5% YoY; Q2 bookings -6% YoY but included seven large deals
- Financial Services revenue +12.0% YoY (+11.7% CC), second consecutive double-digit quarter
- Operating cash flow $558M; free cash flow $459M
- Repurchased 22.5M shares for $1,153M in Q2; $2.3B remaining authorization; quarterly dividend $0.33/share
- Completed acquisition of Astreya for $634M net of cash; borrowed $1.0B under revolving credit facility
- Project Leap restructuring charges of $84M in Q2; expects $230M-$320M total in 2026
- India Defined Contribution Obligation reversal provided $81M benefit in Q2
Financial Impact
FY revenue guide lowered by ~$180M at midpoint; FY EPS guide raised by $0.06 at midpoint, attributable to ~$1.15B quarterly buyback and cost restructuring. Debt increased from $568M to $1,560M due to Astreya funding.
Risk Factors
- Further revenue growth deceleration below 4% YoY as IT spending environment softens
- Execution risk on Project Leap cost savings while maintaining client delivery quality
- Increased net debt ($1.56B vs $568M at year-end) from Astreya acquisition and revolver draw
- Heavy reliance on share repurchases to drive EPS growth, masking underlying earnings trajectory
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001058290-26-000030 |
| Exhibit: exhibit9936302026.htm | 0001058290-26-000030 |
| Exhibit: exhibit9926302026.htm | 0001058290-26-000030 |
| Document: ctsh-20260729.htm | 0001058290-26-000030 |
| Document: 0001058290-26-000030-index-headers.html | 0001058290-26-000030 |
| Document: 0001058290-26-000030-index.html | 0001058290-26-000030 |
| Document: 0001058290-26-000030.txt | 0001058290-26-000030 |
| 8-K Data (Synthetic) | 0001058290-26-000030 |
Track record builds as more directional reports settle.
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| 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%) |
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