Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Q2 2026 Earnings Presentation
20 slides from Cognizant Technology Solutions's earnings presentation, Jul 29, 2026
Slide 1: Second Quarter 2026 Financial Results and Highlights
Exhibit 99.3 Second Quarter 2026 Financial Results and Highlights July 29, 2026 © 2026 Cognizant
Slide 2: Forward-looking statements
Forward-looking statements This earnings supplement includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumpt
Slide 3: Results Summary: Q2 2026
Results Summary: Q2 2026 Revenue GAAP and Adjusted Operating Margin1 Increase of 4.5% Y/Y as reported, and an increase of 4.1% Y/Y in constant currency1 $5,481M 15.9% 16.0% 15.6% 15.6% $5,245M Q2 '25 Q2 '26 Q2 '25 Q2 '26 Q2 '25 Q2 '26 GAAP Operating Margin Adjusted Operating Margin1 Diluted Earnings
Slide 4: Q2 2026 highlights
Q2 2026 highlights GAAP and Adjusted operating Second consecutive margin expansion of Organic revenue growth quarter of double-digit 30 bps and 40 bps at high end of expectations revenue growth in year-over-year, Financial Services respectively Seven large deals1 Over $1.3 billion 5% trailing twelve
Slide 5: Full-year 2026 and Q3 2026 Guidance
Full-year 2026 and Q3 2026 Guidance1 2026 Guidance Assumptions ~$22.04B to ~$22.35B Revenue Includes ~150 bps of inorganic contribution 4.4% to 5.9% Y/Y or 4.0% to 5.5% Y/Y CC 16.0% to 16.2% Adjusted Operating Margin2 20 to 40 basis points Y/Y expansion Adjusted effective tax rate2 25% to 26% Share
Slide 6: Revenue, Operating Margin and EPS
Revenue, Operating Margin and EPS $ in millions except per share amounts $5,415 $5,413 $5,481 $5,333 $5,245 $5,115 $1.39 $1.40 $1.37 $1.35 $1.31 $1.23 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Revenue Adjusted Diluted EPS Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Revenue Y/Y1 7.5% 8.1% 7.4% 4.9% 5.8
Slide 7: Revenue Performance: Q2 2026
Revenue Performance: Q2 2026 Segments Geography $ in millions $ in millions Health Sciences Financial Services Europe +1.4% Y/Y +12.0% Y/Y $1,572 +2.5% Y/Y +1.0% Y/Y CC $1,733 +11.7% Y/Y CC $1,027 +0.8% Y/Y CC North America +5.5% Y/Y $4,127 +5.5% Y/Y CC $327 Rest of World (1.2%) Y/Y $854 Products $1
Slide 8: Health Sciences
Health Sciences Revenue Q2 2026 Geography $ in millions $ in millions $1,604 $1,621 $1,571 $1,579 $1,572 $1,551 Europe +3.2% Y/Y +0.8% Y/Y CC North America $224 +0.7% Y/Y and Y/Y CC $1,307 $41 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Rest of World +13.9% Y/Y Change in Revenue +12.7% Y/Y CC Q1 '25 Q
Slide 9: Financial Services
Financial Services Revenue Q2 2026 Geography $ in millions $ in millions $1,733 $1,644 $1,578 $1,586 $1,547 Europe $1,462 +4.1% Y/Y +2.5% Y/Y CC $332 North America +15.2% Y/Y and Y/Y CC $1,263 Rest of World $138 +4.5% Y/Y Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 +4.6% Y/Y CC Change in Revenue Q1 '2
Slide 10: Products & Resources
Products & Resources Revenue Q2 2026 Geography $ in millions $ in millions $1,383 $1,306 $1,318 $1,321 $1,322 $1,278 Europe +4.9% Y/Y +3.1% Y/Y CC $322 North America $918 —% Y/Y (0.1%) Y/Y CC $82 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Rest of World +1.2% Y/Y +0.1% Y/Y CC Change in Revenue1 Q1 '25
Slide 11: Communications, Media & Technology
Communications, Media & Technology Revenue Q2 2026 Geography $ in millions $ in millions $869 $854 Europe $841 $850 $804 $808 (6.3%) Y/Y (7.3%) Y/Y CC $149 North America $639 +6.5% Y/Y and Y/Y CC Rest of World $66 (19.5%) Y/Y Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 (19.3%) Y/Y CC Change in Revenue
Slide 12: Trailing Twelve Month Bookings
Trailing Twelve Month Bookings1 $ in billions $29.6 $29.1 $27.8 $28.4 $27.5 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Trailing twelve month bookings of $29.1 billion increased 5% year-over-year and represented a book-to-bill of 1.3x Q2 2026 bookings decreased 6% year-over-year 1 See “About Non-GAAP Financi
Slide 13: Employee Metrics
Employee Metrics Headcount in thousands 357.6 356.7 349.8 351.6 343.8 336.3 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Additional Employee Metrics Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Trailing 12-Month Voluntary Attrition - Tech Services 12.0% 12.6% 12.6% 12.3% 12.3% 13.0% Utilization Q1 '25 Q2
Slide 14: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Annual Quarterly $ in millions $ in millions $2,408 Share $1,163 Repurchases $605 $444 Acquisitions $1,615 $1,378 $1,334 $730 $604 Dividends $368 $463 $338 $600 $610 $618 $153 $151 $151 $159 $157 FY 2024 FY 2025 Trailing 12 Months Q2 '25 Q3 '25 Q4 '25 Q1
Slide 15: APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
Slide 16: About Non-GAAP Financial Measures and Performance Metrics
About Non-GAAP Financial Measures and Performance Metrics Non-GAAP Financial Measures To supplement our financial results presented in accordance with GAAP, this earnings supplement includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial
Slide 17: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures (in millions, except per share amounts) Three Months Ended: Guidance Full Year Mar 31, 2025 Jun 30, 2025 Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Jun 30, 2026 2026(1) GAAP income from operations $ 853 $ 817 $ 866 $ 853 $ 843 $ 874 Project Leap charges(a)
Slide 18: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Notes: (a) Project Leap charges for the three months ended June 30, 2026 were $84 million and included $56 million of employee separation costs and $28 million of other costs. We expect to incur costs of $230 million to $320 million in connection with P
Slide 19: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures (e) Presented below are the tax impacts of our non-GAAP adjustments to pre-tax income: 2025 2026 Three months ended: Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Non-GAAP income tax benefit (expense) related to: Project Leap charges $ — $ — $ — $ — $ — $ 2
Slide 20: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Reconciliation of free cash flow Three Months Ended (in millions) Mar 31, 2025 Jun 30, 2025 Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Jun 30, 2026 Net cash provided by operating activities $ 400 $ 398 $ 1,227 $ 858 $ 274 $ 558 Purchases of property and equ
Cognizant Technology Solutions — Q2 2026 Earnings Presentation on 6ix