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Cognizant Technology Solutions (CTSH) guidance and outlook
Cognizant Technology Solutions (CTSH) lowered its guidance on Oct 29, 2026: Operating margin 16.1% for FY2026; Operating margin +30 bps for FY2026; EPS $5.72–$5.79 for FY2026; EPS +8% to +10% for FY2026. Cognizant Technology Solutions' 10-Q filed Oct 29, 2026 makes 24 forward-looking statements, 10 of them new and 1 no longer said since the filing before.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | FY2026 | +4% to +4.4% | new |
| Operating margin | FY2026 | 16.1% | reaffirmed |
| Operating margin | FY2026 | +30 bps | reaffirmed |
| EPS | FY2026 | $5.72–$5.79 | reaffirmed |
| EPS | FY2026 | +8% to +10% | reaffirmed |
| Revenue | Q4 2026 | $5.5B–$5.6B | new |
| Revenue | Q4 2026 | +3% to +4.5% | new |
| Revenue | FY2026 | $22.1B | lowered |
| Revenue | FY2026 | +4.5% to +4.9% | lowered |
| EPS | FY2026 | $0.05 | reaffirmed |
From the earnings release filed Oct 29, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Oct 29, 2026
- By fostering a workforce that is properly sized, AI-enabled and possesses the skills required for success as well as optimizing our technology footprint, we aim to streamline operations and enhance productivity through AI-led efficiencies, creating a more agile and cost-effective operating model.
- updated · In connection with Project Leap, in the third quarter of 2026 we incurred $51 million of employee separation and other costs.
- new · During the third quarter of 2026, we revised our estimates related to Project Leap.
- new · We now expect to record total costs of $180 million to $250 million, with $140 million to $160 million of costs expected to be incurred in 2026 and the remainder to be incurred through the first quarter of 2027.
- In addition, we may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with Project Leap.
- new · Our operating margins for the quarter ended September 30, 2026, as compared to the quarter ended September 30, 2025, were positively impacted by Project Leap savings, net of investments in our AI capabilities, and the beneficial impact of foreign currency exchange rate movements, partially offset by increased compensation costs and the dilutive impact of our recently completed acquisitions.
- updated · In addition, our GAAP operating margin for the quarter ended September 30, 2026 was negatively impacted by $51 million in costs related to Project Leap (see Note 4 ) which were excluded from our Adjusted Operating Margin.
- new · As a result, we concluded that it is not more likely than not that we will realize our deferred tax asset of $390 million related to research and experimental costs capitalized outside the United States.
- We continue to expect our clients' focus to be on their transformation into AI-ready, technology-driven, data-enabled, customer-centric and differentiated businesses .
- We believe clients will continue to contend with industry-specific changes driven by evolving digital technologies, uncertainty in the regulatory environment, industry consolidation and convergence as well as international trade policie s, including tariffs, and other macroeconomic and geopolitical factors.
- We plan to continue to make significant investments in our AI capabilities to meet the needs of our clients and harness AI's value in a flexible, secure, scalable and responsible way.
- Our cost of revenues consists primarily of salaries, incentive-based compensation, stock-based compensation expense, employee benefits, project-related immigration and travel for technical personnel, subcontracting and costs of third-party products and services relating to revenues.
Cognizant Technology Solutions' latest quarter
Cognizant Technology Solutions, Q3 2026: revenue $5.7B (+5% year over year), operating margin 15.4%, net earnings $627M, operating cash flow $1.0B. The chart follows the revenue to costs, profit and cash.
Questions
Did Cognizant Technology Solutions raise or lower its guidance?
Cognizant Technology Solutions (CTSH) lowered its guidance on Oct 29, 2026: Operating margin 16.1% for FY2026; Operating margin +30 bps for FY2026; EPS $5.72–$5.79 for FY2026; EPS +8% to +10% for FY2026.
What does Cognizant Technology Solutions expect?
In connection with Project Leap, in the third quarter of 2026 we incurred $51 million of employee separation and other costs. During the third quarter of 2026, we revised our estimates related to Project Leap. We now expect to record total costs of $180 million to $250 million, with $140 million to $160 million of costs expected to be incurred in 2026 and the remainder to be incurred through the first quarter of 2027.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.