CTSH · 10-Q · 2026Q3

COGNIZANT TECHNOLOGY SOLUTIONS CORP

Filed 2026-10-29 · Technology · View original filing on EDGAR

Everything CTSH's SEC filings said, ranked

Ranked Events

• Strategic InitiativesImportance 52 · Surprise 42
  In the second quarter of 2026, Cognizant initiated Project Leap to fund investments in integrated offerings, AI capabilities and partnerships, reshape productivity, and optimize its technology footprint. The company…
• Restructuring ChargesImportance 52 · Surprise 42
  Cognizant incurred $51 million of Project Leap employee separation and other costs in Q3 2026 and $135 million cumulatively since the program began. The company revised expected total program costs to $180 million–$250…
• U.S. Tax Law ChangesImportance 49 · Surprise 60
  The U.S. One Big Beautiful Bill Act (OBBBA) was enacted in July 2025 and repealed the requirement to capitalize U.S. research and experimental costs. Cognizant concluded it was not more likely than not to realize a…
• Share Repurchase ProgramImportance 44 · Surprise 24
  During 2026, Cognizant repurchased $1.838 billion of Class A common stock under its stock repurchase program. The repurchases consisted of $1.338 billion in open-market purchases and $500 million through accelerated…
• Income Tax Rate ChangesImportance 42 · Surprise 42
  The effective tax rate declined year over year in Q3 2026 because Q3 2025 included a one-time, non-cash $390 million tax expense related to the OBBBA. That 2025 charge reduced Q3 2025 GAAP diluted EPS by $0.80 and was…
• Revenue Performance and MixImportance 37 · Surprise 32
  Q3 2026 revenue was $5.664 billion, up $249 million, or 4.6% year over year and 4.8% in constant currency. Recently completed acquisitions contributed 210 basis points of year-over-year growth, and third-party product…
• Segment Revenue PerformanceImportance 36 · Surprise 40
  In Q3 2026, Financial Services revenue grew 12.0% reported and 12.3% in constant currency, while CMT grew 10.5% and 10.7%, respectively. Health Sciences revenue declined 1.1% reported and 0.9% constant currency;…
• India-Mauritius Tax TreatyImportance 34 · Surprise 42
  India and Mauritius signed a protocol amending the India-Mauritius Income Tax Treaty in March 2024. The amendment entered into force in August 2026 and was announced by the Indian government in October 2026. Cognizant…
• AI Investment OutlookImportance 34 · Surprise 42
  Cognizant says clients are focused on transformation into AI-ready, technology-driven and data-enabled businesses and may increasingly seek services that deliver productivity and cost savings. The company increasingly…
• India Labor Law ChangesImportance 32 · Surprise 42
  India’s labor law reforms, including the Code on Social Security, 2020, took effect on November 21, 2025. The government published The Social Security Rules in May 2026 and notified the Employees Provident Fund Scheme…
• FX / Currency ImpactImportance 31 · Surprise 32
  Indian rupee-denominated costs represented approximately 22% of Cognizant’s global operating costs in the third quarter of 2026, exposing results to exchange-rate movements. Net of designated cash-flow hedges, rupee…
• Operating Margin DriversImportance 29 · Surprise 32
  Q3 2026 GAAP operating margin fell 60 basis points year over year to 15.4%, while adjusted operating margin increased 30 basis points to 16.3%. Project Leap savings, net of AI capability investments, and favorable…
• Geographic Revenue PerformanceImportance 25 · Surprise 32
  In the third quarter, revenue increased 5.8% in North America and 6.2% in the United Kingdom, while Continental Europe declined 1.5% on a constant-currency basis; Europe overall grew 2.2%. North America growth included…
• Operating Expense TrendsImportance 24 · Surprise 14
  Q3 2026 cost of revenues increased $170 million year over year, and its share of revenue rose 0.1 percentage point to 66.2%, primarily from third-party product sales and higher compensation costs, partly offset by…
• End-Market Demand TrendsImportance 14 · Surprise 6
  Third-quarter revenue growth was led by banking clients in Financial Services and technology clients in CMT, while communications and media customers in CMT, healthcare customers in Health Sciences, and retail,…
• Liquidity and Cash PositionImportance 13 · Surprise 6
  Cognizant monitors domestic and international cash flows and balances and assesses how much non-U.S. cash, cash equivalents, and short-term investments is needed locally versus available for repatriation to the United…

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