Form 10-Q · Quarterly report
Cognizant 10-Q, filed Oct 29, 2026
- Filed
- CIK
- 0001058290
- Accession no.
- 0001058290-26-000041
Summary
Cognizant reported third-quarter 2026 revenue of $5.66 billion, up 4.6% from a year earlier, with GAAP operating margin of 15.4% (down from 16.0%) and diluted EPS of $1.39, and revised the estimated total cost of its Project Leap restructuring program to $180 million-$250 million, expecting about $200 million in 2026 savings. The company said India's labor law reforms and a protocol amending the India-Mauritius income tax treaty could affect its compensation expenses and effective tax rate.
Key points
- Third-quarter 2026 revenue rose 4.6% to $5.66 billion, led by banking clients in Financial Services and technology clients in CMT, partly offset by weakness in communications and media, healthcare, and retail, consumer goods, travel and hospitality clients.
- Cognizant incurred $51 million of Project Leap employee separation and other costs in Q3 2026 and $135 million since the program began, and now expects total program costs of $180 million to $250 million with roughly $200 million of in-year savings in 2026.
- Headcount was approximately 359,900 at the end of Q3 2026 versus 349,800 a year earlier, and trailing-twelve-month voluntary attrition in tech services was 12.6%.
- A one-time, non-cash income tax expense of $390 million recorded in Q3 2025 followed the OBBBA's repeal of the U.S. requirement to capitalize research and experimental costs, reducing that quarter's GAAP diluted EPS by $0.80.
Written by an AI model from the filing text. It can be incomplete or wrong; the filing on SEC.gov is the record.
From the filing
Item 2. Management’s Discussion Executive Summary Cognizant is one of the world’s leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients. We help clients modernize technology, reimagine processes and transform experiences so they can stay ahead in today's fast-changing world, where AI is reshaping organizations in every field. As an AI builder, we provide deep expertise at the intersection of industry and technology, combining our perspective with extensive knowledge of our clients' organizations to build industry-specific platforms and incorporate context into systems, AI models and custom solutions. …
An excerpt of the text as filed with the SEC, cut for length.
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