Cognizant Technology Solutions raised its full-year 2026 earnings outlook following strong second-quarter performance, anchored by robust momentum in its core financial services division and expanding demand for artificial intelligence-led transformation. The Nasdaq-listed IT services major reported Q2 revenue of $5.48 billion, representing a 4.5% year-on-year growth, while adjusted operating margins expanded 40 basis points to 16.0%. Growth was spearheaded by its Financial Services segment—Cognizant’s largest business line—which accelerated 12% year-on-year, marking its second consecutive quarter of double-digit growth as banking and financial clients increased spending on digital modernization and AI integration. Adjusted diluted earnings per share (EPS) for the quarter rose to $1.37. Buoyed by broad-based demand in North America and strong execution across large enterprise contracts, Cognizant upgraded its full-year 2026 adjusted EPS guidance to a range of $5.70 to $5.82, up from its previous projection of $5.63 to $5.77. Full-year constant currency revenue growth is now expected to reach 4.0% to 5.5%. Chief Executive Officer Ravi Kumar S highlighted that organic growth hit the high end of internal expectations, demonstrating client confidence despite a cautious macro environment for discretionary IT spending. Management reiterated that targeted investments in proprietary AI platforms, strategic acquisitions, and disciplined cost-management initiatives under its operational efficiency programs continue to safeguard margins. Following the earnings announcement and upgraded full-year forecast, Cognizant shares surged up to 11% in U.S. trading.
