Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Q1 2026 Earnings Presentation
19 slides from Cognizant Technology Solutions's earnings presentation, Apr 29, 2026
Slide 1: First Quarter 2026 Financial Results and Highlights
Exhibit 99.3 First Quarter 2026 Financial Results and Highlights April 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: Q1 2026
Results Summary: Q1 2026 Revenue GAAP and Adjusted Operating Margin1 Increase of 5.8% Y/Y as reported, and an increase of 3.9% Y/Y in constant currency1 $5,413M 16.7% 15.6% 15.5% 15.6% $5,115M Q1 '25 Q1 '26 Q1 '25 Q1 '26 Q1 '25 Q1 '26 GAAP Operating Margin Adjusted Operating Margin1 Diluted Earnings
Slide 4: Q1 2026 highlights
Q1 2026 highlights Revenue in upper half Financial Services growth 21% quarterly bookings of guidance range of 12% y/y and 10% y/y growth; 11% TTM in constant currency bookings growth Seven large deals1 signed including one mega deal; Over 5,000 AI Nearly 40% of code engagements is AI assisted2 over
Slide 5: Full-year 2026 and Q2 2026 Guidance
Full-year 2026 and Q2 2026 Guidance1 2026 Guidance Assumptions ~$22.11B to ~$22.64B Revenue Includes ~150 bps of inorganic contribution 4.8% to 7.3% Y/Y or 4.0% to 6.5% 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 $5,41 5 $5,333 $5,41 3 $5,245 $5,1 1 5 $1 .39 $1 .40 $1 .35 $1 .31 $1 .23 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Revenue Adjusted Diluted E PS Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Revenue Y/Y1 7.5% 8.1% 7.4% 4.9% 5.8% Revenue Y/Y CC1
Slide 7: Revenue Performance: Q1 2026
Revenue Performance: Q1 2026 Segments Geography $ in millions $ in millions Health Sciences Financial Services Europe +0.5% Y/Y +12.4% Y/Y $1 ,579 +9.4% Y/Y (0.9%) Y/Y CC $1 ,644 +10.2% Y/Y CC $1 ,039 +0.6% Y/Y CC North America +5.1% Y/Y $4,052 +4.9% Y/Y CC $322 Rest of World $869 +3.5% Y/Y Products
Slide 8: Health Sciences
Health Sciences Revenue Q1 2026 Geography $ in millions $ in millions $1 ,604 $1 ,621 $1 ,571 $1 ,579 $1 ,551 Europe +7.7% Y/Y (2.5%) Y/Y CC North America $225 (1.4%) Y/Y and Y/Y CC $1 ,31 1 $43 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Rest of World +34.4% Y/Y Change in Revenue +30.7% Y/Y CC Q1 '25 Q2 '25
Slide 9: Financial Services
Financial Services Revenue Q1 2026 Geography $ in millions $ in millions $1 ,644 $1 ,578 $1 ,586 $1 ,547 $1 ,462 Europe +12.3% Y/Y +3.7% Y/Y CC $337 North America +12.8% Y/Y +12.3% Y/Y CC $1 ,1 76 Rest of World $1 31 +10.1% Y/Y +7.7% Y/Y CC Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Change in Revenue Q1 '25
Slide 10: Products & Resources
Products & Resources Revenue Q1 2026 Geography $ in millions $ in millions $1 ,383 $1 ,306 $1 ,31 8 $1 ,321 $1 ,278 Europe +12.1% Y/Y +3.3% Y/Y CC $325 North America $91 6 +0.5% Y/Y +0.3% Y/Y CC $80 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Rest of World +3.9% Y/Y +2.0% Y/Y CC Change in Revenue1 Q1 '25 Q2
Slide 11: Communications, Media & Technology
Communications, Media & Technology Revenue Q1 2026 Geography $ in millions $ in millions $869 Europe $841 $850 $804 $808 +0.7% Y/Y (6.6%) Y/Y CC $1 52 North America +13.9% Y/Y $649 +13.7% Y/Y CC Rest of World $68 (18.1%) Y/Y Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 (19.1%) Y/Y CC Change in Revenue Q1 '25
Slide 12: Trailing Twelve Month Bookings
Trailing Twelve Month Bookings1 $ in billions $29.6 $27.8 $28.4 $27.5 $26.7 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Trailing twelve month bookings of $29.6 billion increased 11% year-over-year and represented a book-to-bill of 1.4x Q1 2026 bookings increased 21% year-over-year 1 See “About Non-GAAP Finan
Slide 13: Employee Metrics
Employee Metrics Headcount in thousands 357.6 349.8 351 .6 343.8 336.3 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Additional Employee Metrics Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Trailing 12-Month Voluntary Attrition - Tech Services1 12.0% 12.6% 12.6% 12.3% 12.3% Utilization Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26
Slide 14: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Annual Quarterly $ in millions $ in millions $605 $1 ,61 3 $444 Share Repurchases $1 ,61 5 $1 ,378 Acquisitions $730 $730 $368 $463 $338 Dividends $209 $600 $61 0 $61 4 $1 55 $1 53 $1 51 $1 51 $1 59 F Y 2024 F Y 2025 Trailing 1 2 Months Q1 '25 Q2 '25 Q3
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 2026(1) GAAP income from operations $ 853 $ 817 $ 866 $ 853 $ 843 (Gain) on sale of property and equipment(a)
Slide 18: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Notes: (a) During the three months ended March 31, 2025, we realized a gain of $62 million on the sale of an office complex in India, which was reported in "(Gain) on sale of property and equipment" on our unaudited consolidated statement of operations.
Slide 19: 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 Net cash provided by operating activities $ 400 $ 398 $ 1,227 $ 858 $ 274 Purchases of property and equipment (77) (67) (6
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