Home / Business and Economy / Cognizant Rallies After Beating Expectations, Raising Forecast
Cognizant Rallies After Beating Expectations, Raising Forecast
1 Aug
Summary
- Cognizant stock fell 26.7% over the past year, underperforming the market.
- Second-quarter revenue increased 4.5% year over year to $5.5 billion.
- Company raised its full-year revenue growth guidance to 4%-5.5%.
Cognizant Technology Solutions Corporation (CTSH), a global IT services firm headquartered in Teaneck, New Jersey, has seen its stock struggle, declining 26.7% in the year leading up to August 1, 2026. This underperformance contrasts sharply with broader market gains.
However, on July 29, 2026, Cognizant announced second-quarter financial results that surpassed expectations. Revenue climbed 4.5% year-over-year to $5.5 billion, with notable double-digit growth in its Financial Services segment. Adjusted earnings per share (EPS) rose 4.6% to $1.37.
Buoyed by these results and anticipating greater enterprise AI adoption, Cognizant raised its full-year 2026 constant-currency revenue growth guidance to between 4% and 5.5%. The company also increased its adjusted diluted EPS forecast to $5.70-$5.82. This positive outlook prompted an 11.3% jump in CTSH shares on July 30, 2026.
Analysts, as of August 1, 2026, project diluted EPS to reach $5.70 for the current year. Cognizant's recent earnings surprise history is mixed, having exceeded estimates in three of the last four quarters. The stock is currently rated a "Moderate Buy" by analysts.
