CTSH · Earnings call · 2026Q3T · Full report
Guidance / Outlook
COGNIZANT TECHNOLOGY SOLUTIONS CORP · 2026-10-29 · Importance 41 · Surprise 32 · No source text
Management said it is confident about remaining in the industry’s winner circle in 2027. It expects gross and operating margin expansion and projected full-year margin expansion, following seven consecutive quarters of margin expansion. Management also reiterated forecast EPS growth of 8% to 10%.
Key facts
- Cognizant narrowed adjusted operating margin guidance to approximately 16.1%, representing 30 basis points of year-over-year expansion.
- Cognizant forecast EPS growth of 8% to 10%.
- Cognizant narrowed full-year EPS guidance to $5.72 to $5.79, representing 8% to 10% growth.
- Cognizant expects its full-year weighted-average diluted share count to be approximately 460 million, unchanged from prior guidance.
- Cognizant's Q3 2026 adjusted EPS was $1.49, up 7% year-over-year, with growth driven by revenue growth, margin expansion, and lower share count and partially offset by higher interest and tax expenses.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | committed | +7.7% | Cognizant narrowed full-year EPS guidance to $5.72 to $5.79, representing 8% to 10% growth. |
| margin | positive | committed | +0.3% | Cognizant narrowed adjusted operating margin guidance to approximately 16.1%, representing 30 basis points of year-over-year expansion. |