Archive · 30 Jul 2026
Cognizant Q2 Profit Falls, Cuts Annual Guidance Amid Slowdown
Cognizant, a big IT company, earned a little less money in the second quarter of 2026 than it did the year before.
Its profit fell 1.4% to $636 million because it had to pay more taxes.
Even though sales grew 4.5% to $5.5 billion, the company lowered its yearly growth forecast to 4‑5.5% because the world economy is slowing down.
The CEO said wars and high prices are hurting business.
The company’s profit margin improved a bit, but it still has to cut jobs and keep costs down.
Q2 net profit fell 1.4% YoY to $636 million due to higher tax provisions.
Revenue rose 4.5% to $5.5 billion, but annual growth guidance was lowered to 4‑5.5% constant currency.
CEO Ravi Kumar cited macroeconomic challenges, wars, West Asia crisis, and inflation as reasons for the cut.
Financial services grew 11.7% while healthcare lagged at 1% in Q2.
Margins improved 30 basis points to 15.9% and headcount fell by 900 to 356,700.
- Who
- Cognizant Inc. and its CEO Ravi Kumar
- What
- Q2 earnings report showing a profit dip and a cut to annual guidance
- When
- April‑June 2026 (Q2 2026)
- Where
- Nasdaq‑listed Indian IT services company
- Why
- Macroeconomic slowdown, wars, West Asia crisis, and inflation
- Q2 Net Profit 2026
- $636 million
- Q2 Revenue 2026
- $5.5 billion
- Annual Growth Guidance
- 4‑5.5% constant currency
- Operating Margin
- 15.9%
- Headcount
- 356,700