Cognizant Q2 revenue meets on financial services growth
CTSH•Outlook
- Cognizant expects Q3 revenue of $5.60-$5.68 bln, growth of 3.4%-4.9%
- Company sees 2026 revenue at $22.04-$22.35 bln, growth of 4.4%-5.9%
- Cognizant raises 2026 adj EPS guidance to $5.70-$5.82, growth of 8%-10%
Result drivers
- Financial services growth - Double-digit year-over-year revenue growth in the Financial Services segment supported overall results, per CEO Ravi Kumar S
- AI-led client demand - Company cited demand for AI transformation and data modernization as key drivers, supported by investments in workforce reskilling and platform partnerships
- Disciplined execution - Management attributed margin expansion and steady growth to operational rigor and resilience in a complex environment, per CFO Jatin Dalal
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the IT services & consulting peer group is "buy"
- Wall Street's median 12-month price target for Cognizant Technology Solutions Corp is $63.00, about 25.2% above its July 28 closing price of $50.31
- The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago
