Q2 2026 Cognizant Technology Solutions Corp Earnings Call Transcript
Key Points
- Cognizant Technology Solutions Corp (CTSH) reported a solid second quarter with organic revenue growth at the high end of expectations and year-over-year adjusted operating margin expansion.
- Revenue grew 4.1% year over year in constant currency, driven by strong performance in North America and Financial Services, which grew nearly 12% year over year.
- The company signed seven large deals, each with a total contract value of more than $100 million, including three new logos.
- Cognizant Technology Solutions Corp (CTSH) is advancing its AI capabilities, with over 40% of software development now AI-assisted and more than 8,000 AI engagements.
- The acquisition of Astreya is expected to generate attractive growth synergies, particularly in AI infrastructure buildout.
- Despite the positive growth, the company faces a cautious demand environment, with macroeconomic uncertainty impacting discretionary spending.
- One in four companies have paused AI deployments, and two-thirds of the Global 2000 have not yet realized measurable AI productivity gains.
- The company revised its full-year revenue guidance range to 4% to 5.5% growth in constant currency, reflecting ongoing macroeconomic challenges.
- Adjusted operating margin guidance remains unchanged, indicating limited margin expansion potential in the near term.
- Interest expense increased due to a lower cash balance and the drawdown of the revolving credit facility, impacting EPS.
Ladies and gentlemen, welcome to the Cognizant Technology Solutions second quarter 2026 earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Mr. Tyler Scott, Senior Vice President, Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to Cognizant's second quarter 2026 earnings call. I am joined today by Ravi Kumar, Chief Executive Officer; and Jatin Dalal, our Chief Financial Officer.
By now, you should have received a copy of the earnings release and investor supplement. If you have not, copies are available on our website, cognizant.com. Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties as described in the company's earnings release and other filings with the SEC.
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