Highlights

  • Cognizant scheduled third-quarter results for October after reporting higher second-quarter revenue, earnings and operating margins during the period.
  • Financial Services sustained double-digit growth, while quarterly bookings declined despite an increase in trailing twelve-month bookings overall.
  • The company repurchased USD 1.15 billion of shares during the quarter, exceeding the free cash flow it generated.
  • Management raised annual adjusted earnings guidance while retaining its operating margin range and revising constant-currency revenue growth expectations.

Bookings will be a central operating measure when Cognizant Technology Solutions (NASDAQ:CTSH) reports third-quarter results on 29 October 2026. The company enters the announcement with higher annual earnings guidance and improving margins, but its latest quarter showed a decline in new bookings. Stronger financial services revenue offered a contrasting source of growth.

Reporting Date Sets the Next Checkpoint

Cognizant announced on 2 October that results would be released before the market opens, followed by an 8:30 a.m. Eastern conference call.

The upcoming disclosure follows second-quarter results issued on 29 July. Revenue was USD 5.48 billion, up 4.5% as reported and 4.1% in constant currency.

Chief executive Ravi Kumar S said organic revenue growth momentum continued at the high end of expectations. The reported figures establish the scale of that expansion, while constant-currency growth separates the operating comparison from exchange-rate effects.

Financial Services Offsets Mixed Bookings

Financial Services revenue grew 12.0%, marking a second consecutive quarter of double-digit expansion. The segment's performance was stronger than the group's overall revenue growth.

Bookings presented a mixed picture. Trailing twelve-month bookings reached USD 29.1 billion, up 5%, but second-quarter bookings fell 6%. The different time periods matter: the longer-term increase does not remove the decline in the latest quarter.

The next report will provide a further reading on that divergence. Bookings and recognised revenue cover different stages of business activity, separating the latest order trend from current sales.

Profitability Edges Higher

GAAP operating margin was 15.9%, an improvement of 30 basis points. Adjusted operating margin increased 40 basis points to 16.0%.

Diluted earnings per share reached USD 1.36 on a GAAP basis, up 3.8%, and USD 1.37 adjusted, up 4.6%. Both earnings measures increased, alongside the improvements in the corresponding operating margins.

Cash and equivalents were USD 1.04 billion at 30 June. Second-quarter free cash flow totalled USD 459 million.

Repurchases Accompany Raised Guidance

Cognizant repurchased 22.5 million shares for USD 1.15 billion during the quarter, leaving USD 2.3 billion under its authorisation. The expenditure exceeded the quarter's free cash flow. A USD 0.33 dividend per share was payable on 25 August.

Third-quarter revenue guidance is USD 5.60 billion to USD 5.68 billion, representing growth of 3.4% to 4.9%. Annual revenue is expected at USD 22.04 billion to USD 22.35 billion.

Management raised adjusted diluted earnings-per-share guidance to USD 5.70 to USD 5.82. The annual adjusted operating margin range remained 16.0% to 16.2%, while constant-currency revenue growth expectations were revised to 4.0% to 5.5%.

Separately, Cognizant left the Nasdaq-100 before trading opened on 22 June 2026. It remains Nasdaq-listed. That index change is distinct from operating performance, which the October results will measure through revenue, margins, bookings and delivery against the revised earnings outlook.