Cognizant Technology Solutions Corporation: Beat — EPS $1.49, Revenue $5.66B
Earnings BeatQ3 2026 · Pre-market
Did Cognizant Technology Solutions Corporation (CTSH) beat earnings today?
Yes, Cognizant Technology Solutions Corporation (CTSH) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+2.05% surprise
$1.49Actual
Expected: $1.46
vs. year ago +7.2%
Total Revenue+0.25% surprise
$5.66BActual
Expected: $5.65B
vs. year ago +4.6%
Released Oct 29 · 6:30 AM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $5.66B | $5.42B | +4.6 |
| Revenue detail — reported lines | |||
| └─Health Sciences | $1.59B | - | -1.1 |
| └─Financial Services | $1.77B | - | +12.0 |
| └─Products and Resources | $1.37B | - | -0.9 |
| └─Communications, Media and Technology | $939.00M | - | +10.5 |
| └─North America | $4.26B | - | +5.7 |
| └─United Kingdom | $532.00M | - | +5.8 |
| └─Continental Europe | $525.00M | - | -2.6 |
| └─Europe - Total | $1.06B | - | +1.4 |
| └─Rest of World | $349.00M | - | +1.2 |
| GAAP Basic EPS | $1.39 | $0.56 | +148.2 |
| GAAP Diluted EPS | $1.39 | $0.56 | +148 |
| Adjusted Diluted EPS | $1.49 | $1.39 | +7.2 |
| Net Income | $627.00M | $274.00M | +128.8 |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook |
|---|---|---|
| Revenue | $5.49B-$5.57B (+3.0%-4.5% YoY; +3.2%-4.7% CC) | $22.05B-$22.14B (+4.5%-4.9% YoY; +4.0%-4.4% CC) |
| Adjusted Operating Margin | — | ~16.1% (+30 bps) |
| Adjusted Diluted EPS | — | $5.72-$5.79 (+8%-10% YoY) |
Business Highlights
- ➤Extended Gilead Sciences engagement for five years, supporting DevOps and responsible agentic AI.
- ➤Selected by EBRD for its five-year Tech Blueprint technology-transformation framework.
- ➤Advanced Travelport partnership to embed AI across travel platforms, products and operations.
- ➤Selected by SITA for implementation and transformation of its SKY cloud-platform program.
- ➤Implemented and went live with Application Management Services for Axis Bank's AMS 2.0 initiative.
- ➤Made Workflow Agentic Processing and Enterprise MCP Servers generally available for TriZetto Facets and QNXT.
- ➤Established a Gemini Frontier Capability Group with Google Cloud backed by 18,000 associates.
- ➤Entered a definitive agreement to acquire Australian SAP transformation firm DyFlex Solutions.
- ➤Launched Cognizant AI Nexus, a modular multi-model AI operating layer.
- ➤Launched Cognizant Activate to serve emerging enterprises with pre-configured solution kits.
- ➤Completed an Americas Codex hackathon with OpenAI involving more than 2,600 associates.
- ➤Repurchased 4.9 million shares during the quarter; $2.1B remained authorized.
Management Commentary
Ravi Kumar S, Chief Executive Officer
“We delivered third-quarter revenue above the midpoint of our guidance range, including another quarter of double-digit growth in Financial Services and our seventh consecutive quarter of year-over-year adjusted operating margin expansion.”
Ravi Kumar S, Chief Executive Officer
“The AI market is moving from capability to value realization, requiring enterprises to reimagine how work gets done, build AI into the fabric of the enterprise and create new sources of value. We are making that transition alongside our clients, with over 50% of our code now AI-assisted, over 95,000 frontier AI badges and certifications earned by our associates and continued improvement in revenue and adjusted operating income per employee. What we learn as we apply AI across Cognizant strengthens how we partner with clients through our AI Builder strategy, helping them make AI a new production function that creates enterprise value at scale.”
Jatin Dalal, Chief Financial Officer
“Our third-quarter performance reflects the strength of our operating model and disciplined approach to capital allocation.”
Jatin Dalal, Chief Financial Officer
“Adjusted EPS grew 7%, exceeding revenue growth both in the quarter and year-to-date. Through the first nine months of 2026, we have expanded adjusted operating margin by 30 basis points, generated $1.6 billion of free cash flow and deployed $2.3 billion on share repurchases and dividends. We achieved these results while investing in strategic partnerships and AI skilling initiatives, and integrating recently completed acquisitions. We believe this balanced approach supports sustainable growth and long-term value creation.”