Cognizant reported third quarter 2026 results that exceeded analyst expectations for both revenue and earnings, supported by double-digit growth in its largest vertical. The company expanded adjusted operating margins to 16.3% and reported strong free cash flow while narrowing its full-year guidance ranges to reflect year-to-date performance.
Key Highlights
- Financial Services revenue grew 12.0% year-over-year to $1.8 billion, marking a significant acceleration and the third consecutive quarter of double-digit growth in the segment.
- Adjusted operating margin expanded 30 basis points to 16.3%, driven by the "Project Leap" efficiency program which is expected to generate $200 million in savings during 2026.
- Trailing 12-month bookings reached $28.7 billion, representing a book-to-bill ratio of 1.3x, although quarterly bookings declined 7% year-over-year.