Archive · 29 Jul 2026
Cognizant Lowers FY26 Revenue Growth Forecast
Cognizant, a big IT services company, recently lowered its expected revenue growth for the year.
They now think their revenue will grow by 4-5.5%, which is less than they previously thought.
Even though they made less money this quarter compared to last year, they are still doing better than many other IT companies.
They are focusing on AI projects, which are in high demand.
The company also improved its profitability and is investing in AI capabilities.
However, clients are being careful about spending on technology, which is why they lowered their growth forecast.
Cognizant lowered its FY26 revenue growth forecast to 4-5.5% from 4-6.5%.
Q2 revenue was $5.48 billion, up 4.5% year-on-year.
Net profit for Q2 was $636 million, down 1.4% from the previous year.
Q3 revenue guidance is $5.60-5.68 billion, slightly below consensus estimates.
Operating margin expanded to 15.9%, and adjusted operating margin rose to 16%.
- Who
- Cognizant, a US-based IT services major
- What
- Lowered the upper end of its full-year revenue growth guidance
- When
- On Wednesday
- Where
- Global
- Why
- Due to continued macroeconomic pressures from restrained discretionary spending
Cautious Outlook
Resilient AI Demand
Revenue Growth Forecast
Cautious Outlook
Clients remain cautious on discretionary technology spending, leading to a lowered revenue growth forecast.
Resilient AI Demand
Demand for AI-led projects remains resilient, with strong deal momentum.
Operating Margins
Cautious Outlook
Operating margins improved, but revenue growth was lower than expected.
Resilient AI Demand
The company continues to invest in AI capabilities and share buybacks, improving profitability.
- Revenue Growth Forecast
- 4-5.5% (revised from 4-6.5%)
- Q2 Revenue
- $5.48 billion
- Q2 Net Profit
- $636 million
- Q3 Revenue Guidance
- $5.60-5.68 billion
- Adjusted Earnings per Share Guidance
- $5.70-5.82
- Operating Margin
- 15.9%
- Adjusted Operating Margin
- 16%
- Headcount
- 356,700