Cognizant reported third-quarter 2026 revenue of $5.66 billion, up 4.6% year over year, with double-digit growth in Financial Services. Adjusted operating margin rose for a seventh straight quarter, while adjusted earnings per share increased 7.2%. The company also updated its full-year 2026 outlook for revenue growth, margin and earnings.
Key details
- Revenue: $5.66 billion, up 4.6% year over year, or 4.8% in constant currency. Financial Services revenue grew 12%.
- Margins: GAAP operating margin was 15.4%, down 0.6 percentage point from a year earlier. Adjusted operating margin was 16.3%, up 0.3 percentage point.
- Earnings: GAAP diluted earnings per share were $1.39, compared with $0.56 a year earlier. Adjusted diluted earnings per share rose 7.2% to $1.49 from $1.39.
- Bookings: Trailing 12-month bookings reached $28.7 billion, up 4% year over year.
- Cash flow: For the first nine months of 2026, operating cash flow was $1.84 billion, compared with $2.03 billion in the same period last year. Free cash flow was $1.58 billion, down from $1.88 billion.
- Updated 2026 outlook: Cognizant now expects constant-currency revenue growth of 4.0% to 4.4% year over year, adjusted operating margin of about 16.1%—an increase of 0.3 percentage point—and adjusted diluted EPS of $5.72 to $5.79, representing growth of 8% to 10%.
- AI efforts: The company said more than half of its code is now AI-assisted and that employees have earned more than 95,000 AI-related badges and certifications. CEO Ravi Kumar said Cognizant is applying its own AI experience in work with clients.
The quarter showed adjusted margin improvement alongside moderate revenue growth, while year-to-date operating and free cash flow were below the prior-year levels. The company’s updated outlook calls for full-year adjusted margin expansion and adjusted EPS growth.