Cognizant (Nasdaq: CTSH), a prominent technology services provider, today announced its financial results for the first quarter of 2026, surpassing the upper half of its revenue guidance and reporting double-digit adjusted earnings per share (EPS) growth. The company also raised its full-year adjusted operating margin outlook, signaling confidence in its strategic initiatives, including a new transformation program.

For the first quarter, Cognizant https://www.cognizant.com reported revenue of $5.4 billion, a 5.8% increase year-over-year, or 3.9% in constant currency. Adjusted diluted EPS reached $1.40, marking a 13.8% rise from the prior year. The company’s adjusted operating margin stood at 15.6%, an increase of 10 basis points year-over-year.

Bookings momentum remained robust, with trailing 12-month bookings totaling $29.6 billion, an 11% increase year-over-year, resulting in a book-to-bill ratio of approximately 1.4x. First-quarter bookings alone saw a 21% year-over-year surge, fueled by the signing of seven large deals, including one mega deal valued at $500 million or greater.

“In a complex macroeconomic environment, we delivered first quarter revenue growth in the upper half of our guidance range, with sustained bookings momentum and Financial Services again leading performance,” stated Ravi Kumar S, Chief Executive Officer. “Our AI builder strategy, deep industry expertise, and scaled partnership ecosystem uniquely position us to bridge the ‘AI Velocity Gap’ by helping clients convert their significant AI investments into tangible business outcomes.”

Cognizant Strategic Initiatives and AI Investments Drive Outlook

Cognizant introduced “Project Leap” in the second quarter of 2026, a program aimed at accelerating its operating model transformation. This initiative will fund investments in integrated offerings, AI capabilities, and partnerships, while optimizing workforce sizing and technology footprints. Project Leap is projected to generate in-year savings of approximately $200 million to $300 million in 2026, net of investments, contributing to the revised margin guidance. The company anticipates incurring $230 million to $320 million in related costs, primarily in 2026.

This strategic shift underpins the company’s updated full-year 2026 guidance for adjusted operating margin, which is now expected to be between 16.0% and 16.2%, representing an expansion of 20 to 40 basis points. This is an increase from the prior guidance of 10 to 30 basis points of expansion. Full-year revenue guidance remains unchanged at $22.11 billion to $22.64 billion, reflecting a constant currency growth of 4.0% to 6.5%. Adjusted diluted EPS for the full year is projected to be in the range of $5.63 to $5.77, indicating 7% to 9% growth.

Client Engagements and Expanding AI Ecosystem

Cognizant continued to expand its footprint with new and extended client agreements, highlighting its focus on digital transformation and AI integration. Notable client announcements included joining the J.P. Morgan Payments Consultant Implementation Program (PCIP), signing a three-year strategic agreement with DAMAC Group, and expanding its engagement with Wallenius Wilhelmsen for technology services.

The company’s commitment to AI is further demonstrated through significant platform enhancements and partnerships. Cognizant was chosen by OpenAI to scale the impact of Codex across enterprises, launched “Agentic Retail CX” on Google Cloud’s Gemini Enterprise, and established a dedicated Gemini Enterprise Practice, earning Google Cloud’s Diamond partner status. Collaborations with Palantir aim to accelerate AI-driven modernization in healthcare and enterprise operations. Additionally, the company’s AI Lab secured three new U.S. patents, bringing its total to 65 in the U.S. and 88 globally, showcasing its robust research and development efforts.

These developments align with broader [industry developments](https://technosports.co.in/) in the technology services sector, where AI capabilities are increasingly critical for competitive advantage.

Financials and Headcount

During the first quarter, Cognizant repurchased 6.3 million shares for $427 million under its share repurchase program and declared a quarterly cash dividend of $0.33 per share. Total headcount as of March 31, 2026, increased to 357,600, adding 6,000 employees from the previous quarter and 21,300 year-over-year. Voluntary attrition for tech services remained stable at 12.3% on a trailing 12-month basis.

The company’s focus on AI-driven services and operational efficiency through initiatives like Project Leap positions it for continued growth in the evolving technology landscape.