Overview

• U.S. AI builder and tech services firm's Q1 revenue rose 5.8%, meeting analyst expectations

• Adjusted EPS for Q1 grew 13.8% and beat analyst expectations

• Company launched Project Leap, targeting $200-$300 mln in 2026 cost savings

Outlook

• Company expects Q2 revenue of $5.45 bln to $5.52 bln

• Cognizant sees full-year 2026 revenue of $22.11 bln to $22.64 bln

• Company raises 2026 adjusted operating margin guidance to 16.0% to 16.2%

Result Drivers

• BOOKINGS MOMENTUM - Q1 bookings grew 21% year-over-year, with seven large deals signed, supporting revenue growth

• SEGMENT PERFORMANCE - Financial Services led growth with 12.4% y/y revenue increase, while Communications, Media and Technology also grew 8.1%

• THIRD-PARTY PRODUCT SALES - Sales of third-party products in North America contributed 140 basis points to overall revenue growth, with notable impact in Communications, Media and Technology and Financial Services segments

Company press release: ID:nPn96RRVHa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Meet	$5.41 bln	$5.41 bln (20 Analysts)
Q1 Adjusted EPS	Beat	$1.40	$1.33 (21 Analysts)
Q1 EPS		$1.39
Q1 Adjusted Operating Margin		15.60%
Q1 Operating Income		$843 mln
Q1 Operating Margin		15.60%

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 $83.00, about 50.6% above its April 28 closing price of $55.12

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago

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