COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) Research

Forward Estimates

EPS Estimates

Current Qtr

$1.38

$1.36$1.43

vs $1.31+5.3%

23 analysts

Next Qtr

$1.47

$1.41$1.51

vs $1.39+5.4%

23 analysts

Current Yr

$5.69

$5.29$5.83

vs $5.28+7.8%

30 analysts

Next Yr

$6.16

$5.66$6.38

vs $5.69+8.2%

30 analysts

Revenue Estimates

Current Qtr

$5.49B

$5.48B$5.52B

vs $5.25B+4.7%

20 analysts

Next Qtr

$5.71B

$5.65B$5.79B

vs $5.42B+5.5%

19 analysts

Current Yr

$22.33B

$22.16B$22.48B

vs $21.11B+5.8%

28 analysts

Next Yr

$23.45B

$22.91B$23.96B

vs $22.33B+5.0%

29 analysts

SEC filings →

View all 10-K, 10-Q, and 8-K filings for CTSH on EDGAR.

CTSH filing events and research context
Filed	Item	Context
Apr 29, 2026	mda_quarterly	Q1 2026 revenue increased 5.8% to $5.41 billion, with constant currency growth of 3.9% driven by large deal ramp-ups and demand for AI, analytics, and intuitive operations. Financial Services led segment growth at 12.4%, while Health Sciences faced headwinds from lower third-party product sales. Adjusted operating margin reached 15.6%, benefiting from operational efficiencies and Indian rupee depreciation, which added approximately 50 basis points. Strategic expansion into AI infrastructure includes the acquisition of 3Cloud and a definitive agreement to acquire Astreya Partners for $600 million. To further streamline, the company launched Project Leap, an AI-led productivity program expecting $230 million to $320 million in 2026 costs and $200 million to $300 million in corresponding savings. Key risks include the potential for GenAI to diminish demand or pricing for legacy services, macroeconomic uncertainty affecting discretionary spending, and Indian regulatory shifts, specifically the November 2025 Labor Code reforms and ongoing tax disputes with the ITD. Liquidity remains stable with $1.52 billion in cash and short-term investments and $1.85 billion in available credit, although Days Sales Outstanding (DSO) rose to 84 days.
Feb 12, 2026	business	Cognizant competes in a landscape defined by global providers, local firms, and clients' in-house Global Capability Centers (GCCs). The company’s strategic focus centers on digital, cloud, and security offerings, with significant investment in emerging technologies such as Generative AI (GenAI), automation, IoT, and edge computing. While AI is a critical growth driver, it introduces substantial risks, including high development costs, reliance on third-party datasets and models, and the potential for AI to displace historical service lines. Furthermore, the company must navigate a rapidly evolving regulatory environment, including the EU AI Act. Human capital is a primary operational dependency; Cognizant faces intense competition for specialized technical talent and remains vulnerable to changes in immigration laws affecting H-1B and L-1 visas. Contractual risks include a reliance on short-term, performance-linked engagements and the necessity of successful inorganic growth through acquisitions. Cybersecurity remains a paramount threat, particularly as AI-driven attacks increase in sophistication. Finally, financial results are subject to foreign exchange volatility—specifically the Indian rupee—and the complexities of multi-jurisdictional tax, sustainability, and data privacy compliance.
Feb 12, 2026	mda	Cognizant achieved 2025 revenue of $21.1 billion, a 7.0% year-over-year increase, bolstered by the Belcan acquisition which contributed 260 basis points to growth. Performance was driven by the Health Sciences and Financial Services segments, offsetting weakness in Communications, Media, and Technology. Operating margin expanded to 16.1%, supported by NextGen program efficiencies and favorable currency movements, despite higher compensation costs and the dilutive impact of Belcan. The company is aggressively positioning itself as an "AI builder," investing heavily in GenAI, agentic systems, and data modernization to meet client demand for AI-led productivity. Significant financial headwinds included a $390 million one-time non-cash income tax expense resulting from the enactment of the OBBBA. Key risks involve the rapid evolution of AI, which threatens to replace legacy service lines, and the complex regulatory landscape, including the EU AI Act. Additionally, the company faces intense competition from firms like Accenture and TCS, alongside the necessity of managing talent attrition, which stood at 13.9% for tech services. Cognizant maintains robust liquidity, generating $2.67 billion in free cash flow, and continues a capital allocation framework targeting a 50/50 split between acquisitions and shareholder returns via dividends and repurchases.

Filed

Item

Context

Apr 29, 2026

mda_quarterly

Q1 2026 revenue increased 5.8% to $5.41 billion, with constant currency growth of 3.9% driven by large deal ramp-ups and demand for AI, analytics, and intuitive operations. Financial Services led segment growth at 12.4%, while Health Sciences faced headwinds from lower third-party product sales. Adjusted operating margin reached 15.6%, benefiting from operational efficiencies and Indian rupee depreciation, which added approximately 50 basis points. Strategic expansion into AI infrastructure includes the acquisition of 3Cloud and a definitive agreement to acquire Astreya Partners for $600 million. To further streamline, the company launched Project Leap, an AI-led productivity program expecting $230 million to $320 million in 2026 costs and $200 million to $300 million in corresponding savings. Key risks include the potential for GenAI to diminish demand or pricing for legacy services, macroeconomic uncertainty affecting discretionary spending, and Indian regulatory shifts, specifically the November 2025 Labor Code reforms and ongoing tax disputes with the ITD. Liquidity remains stable with $1.52 billion in cash and short-term investments and $1.85 billion in available credit, although Days Sales Outstanding (DSO) rose to 84 days.

Feb 12, 2026

business

Cognizant competes in a landscape defined by global providers, local firms, and clients' in-house Global Capability Centers (GCCs). The company’s strategic focus centers on digital, cloud, and security offerings, with significant investment in emerging technologies such as Generative AI (GenAI), automation, IoT, and edge computing. While AI is a critical growth driver, it introduces substantial risks, including high development costs, reliance on third-party datasets and models, and the potential for AI to displace historical service lines. Furthermore, the company must navigate a rapidly evolving regulatory environment, including the EU AI Act. Human capital is a primary operational dependency; Cognizant faces intense competition for specialized technical talent and remains vulnerable to changes in immigration laws affecting H-1B and L-1 visas. Contractual risks include a reliance on short-term, performance-linked engagements and the necessity of successful inorganic growth through acquisitions. Cybersecurity remains a paramount threat, particularly as AI-driven attacks increase in sophistication. Finally, financial results are subject to foreign exchange volatility—specifically the Indian rupee—and the complexities of multi-jurisdictional tax, sustainability, and data privacy compliance.

Feb 12, 2026

mda

Cognizant achieved 2025 revenue of $21.1 billion, a 7.0% year-over-year increase, bolstered by the Belcan acquisition which contributed 260 basis points to growth. Performance was driven by the Health Sciences and Financial Services segments, offsetting weakness in Communications, Media, and Technology. Operating margin expanded to 16.1%, supported by NextGen program efficiencies and favorable currency movements, despite higher compensation costs and the dilutive impact of Belcan. The company is aggressively positioning itself as an "AI builder," investing heavily in GenAI, agentic systems, and data modernization to meet client demand for AI-led productivity. Significant financial headwinds included a $390 million one-time non-cash income tax expense resulting from the enactment of the OBBBA. Key risks involve the rapid evolution of AI, which threatens to replace legacy service lines, and the complex regulatory landscape, including the EU AI Act. Additionally, the company faces intense competition from firms like Accenture and TCS, alongside the necessity of managing talent attrition, which stood at 13.9% for tech services. Cognizant maintains robust liquidity, generating $2.67 billion in free cash flow, and continues a capital allocation framework targeting a 50/50 split between acquisitions and shareholder returns via dividends and repurchases.

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