Cognizant Technology Solutions Corporation (CTSH) Q3 FY2026 earnings

Reported results

• Third quarter 2026 revenue of $5.7 billion ($5,664 million) increased 4.6% year-over-year or 4.8% in constant currency.
• GAAP Operating Margin was 15.4%, a decrease of 60 basis points year-over-year.
• Adjusted Operating Margin was 16.3%, an increase of 30 basis points year-over-year.
• GAAP Diluted EPS was $1.39, an increase of 148% year-over-year.
• Adjusted Diluted EPS was $1.49, an increase of 7.2% year-over-year.
• Non-GAAP free cash flow for the third quarter was $925 million.

Guidance

• Fourth quarter 2026 revenue is expected to be $5.49 to $5.57 billion, representing year-over-year growth of 3.0% to 4.5%, or 3.2% to 4.7% in constant currency.
• Full-year 2026 revenue is expected to be $22.05 to $22.14 billion, representing year-over-year growth of 4.5% to 4.9%, or 4.0% to 4.4% in constant currency.
• Full-year 2026 Adjusted Operating Margin guidance is approximately 16.1%, representing year-over-year expansion of 30 basis points.
• Full-year 2026 Adjusted Diluted EPS guidance is $5.72 to $5.79, representing year-over-year growth of 8% to 10%.

Notes

GAAP Diluted EPS includes a one-time non-cash income tax charge of $390 million related to the enactment of the One Big Beautiful Bill Act (OBBBA) that negatively impacted Q3 2025 by $0.80.

Price and volatility reaction

The stock moved -5.8% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -9.4 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-29 (8-K, Item 2.02). Read the original filing on sec.gov.