CTSH · 8-K · 20261029PR000039

Strategic Cost Reduction

COGNIZANT TECHNOLOGY SOLUTIONS CORP · 2026-10-29 · Importance 52 · Surprise 42 · In source text

Cognizant revised its Project Leap cost estimate to $180 million to $250 million, with $140 million to $160 million expected in 2026 and the remainder through the first quarter of 2027. The costs include $150 million to $200 million in employee severance and other personnel costs and $30 million to $50 million in other charges. The program is expected to generate approximately $200 million of in-year savings in 2026, primarily to fund investments in integrated offerings, AI capabilities, partnerships, and workforce upskilling.

Key facts

• Project Leap is expected to generate approximately $200 million of in-year savings in 2026, primarily used to fund investments. source
• Cognizant expects Project Leap to incur total costs of $180 million to $250 million, including $140 million to $160 million in 2026, with the remainder through the first quarter of 2027; cash payments are expected primarily over the same period. source
• Project Leap costs comprise $150 million to $200 million of employee severance and other personnel-related costs and $30 million to $50 million of other charges. source
• Cognizant's 2026 guidance anticipates Project Leap pre-tax charges of approximately $0.30 to $0.35 per diluted share and a tax benefit of approximately $0.08 to $0.09 per diluted share. source

Impact estimates