CTSH · Earnings call · 2026Q3T · Full report

Medicaid and Medicare Regulatory Uncertainty

COGNIZANT TECHNOLOGY SOLUTIONS CORP · 2026-10-29 · Importance 26 · Surprise 24

Management said regulatory uncertainty around Medicaid and Medicare enrollment contributed to a softer-than-expected Q4 outlook and constrained health care discretionary spending. The uncertainty affected expected open-enrollment work, while commercial enrollment was described as comparable to prior years. Management expected Medicaid and Medicare enrollment and funding to stabilize in 2027, including potential new state funding.

Key facts

• Cognizant said regulatory uncertainty around Medicaid and Medicare enrollment contributed to softer-than-expected Q4 2026 results, with the effect expected to be rebaselined in 2027.
• Cognizant said health care regulatory and funding changes continued to constrain discretionary spending in Health Sciences.