Cognizant sees Q2 revenue rise 4.5%, raises FY26 EPS outlook
Cognizant reported a 4.5% revenue increase for the second quarter and raised its full-year earnings outlook. The company is heavily investing in AI-assisted software development and expanding partnerships with major tech firms like Google and Anthropic.
Why it matters
Cognizant's performance and outlook provide insight into the broader IT services sector's transition toward AI-driven enterprise operations.
Cognizant reported a 4.5% year-on-year increase in second-quarter revenue to $5.48 billion while raising its full-year adjusted earnings per share (EPS) guidance after posting growth led by its financial services business
The Teaneck, New Jersey-headquartered IT services company’s operating margin expanded 30 basis points year-on-year to 15.9%, while adjusted operating margin rose 40 basis points to 16%.
Financial Services, Cognizant’s largest business segment, posted 12% year-on-year revenue growth to $1.73 billion. Health Sciences grew 1.4% to $1.57 billion, Products and Resources rose 1.2% to $1.32 billion, while Communications, Media and Technology increased 1.5% to $854 million.
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