Cognizant Posts $5.664 Billion in Revenue, Cuts 2026 Revenue Growth Outlook
Key Facts
Cognizant reported revenue of $5.664 billion for the third quarter ended September 30, 2026, up 4.6% year over year and 4.8% in constant currency, according to the company’s statement issued October 29. At the same time, the company lowered its 2026 constant-currency revenue growth range to 4.0%-4.4%, from 4.0%-5.5% in its July guidance. The revision puts the annual growth ceiling at a lower level despite the quarterly revenue increase. Cognizant expects full-year revenue of between $22.05 billion and $22.14 billion, equivalent to reported growth of between 4.5% and 4.9%. Constant-currency growth, which excludes the effect of exchange-rate movements, is expected to range between 4.0% and 4.4%.
Performance varied across the company’s segments: revenue from financial services rose 12.0% year over year to $1.767 billion, while revenue from health sciences fell 1.1% to $1.587 billion. Chief Executive Ravi Kumar S said quarterly revenue exceeded the midpoint of the guidance range, pointing to double-digit growth in financial services. He added that the adjusted operating margin expanded year over year for the seventh consecutive quarter. The adjusted margin was 16.3%, compared with 16.0% in the year-earlier quarter, while the operating margin under accounting standards was 15.4%. These indicators reflect a contrast between strength in financial services and revenue pressure in health sciences, alongside continued improvement in the adjusted margin, according to the company.
Adjusted diluted earnings per share were $1.49, compared with $1.39 a year earlier, while earnings per share under accounting standards were $1.39, versus $0.56 in the third quarter of 2025. In contracts, bookings for the twelve months ended September 30 rose 4% to $28.7 billion. But third-quarter bookings alone fell 7% year over year, despite including three large deals. The quarterly bookings decline presents a weaker picture than revenue growth and total bookings over the year, while large deals remained part of contracting activity during the period. The statement did not provide a separate value for those deals.
As part of its investment in artificial intelligence, Cognizant said more than 50% of its code was AI-assisted and its employees had earned more than 95,000 badges and certifications in the field. The company described AI Builder as a way to help clients turn artificial intelligence into value, but did not attribute the revision to its annual guidance to this initiative alone. It also said multiple operational and investment factors affect performance, including growth in financial services, acquisitions and sales of external products. The company plans to implement Project Leap at a total cost of between $180 million and $250 million, including an expected $140 million to $160 million in 2026, with the remaining costs to be recorded through the first quarter of 2027. It expects the program to generate approximately $200 million in in-year savings in 2026.
The company forecast fourth-quarter revenue of between $5.49 billion and $5.57 billion, with year-over-year growth of between 3.0% and 4.5%, or between 3.2% and 4.7% in constant currency. The midpoint of that range was below analysts’ average estimate of $5.65 billion, according to Investing.com. Cognizant shares fell about 10% in premarket trading on October 29 after the outlook was released, the same source said. The company also declared a quarterly cash dividend of $0.33 per share for shareholders of record on November 13, payable on November 25, 2026. It scheduled its third-quarter results call for October 29 at 8:30 a.m. Eastern time.