Cognizant Technology Solutions Corp. reported mixed second-quarter financial results. The company posted adjusted earnings of $1.37 per share, falling short of the consensus analyst estimate of $1.38. However, revenue performance exceeded expectations, with the company generating $5.5 billion in quarterly revenue compared to the consensus forecast of $5.49 billion. On a constant currency basis, revenue increased 4.1% year over year.
The Financial Services segment, which represents the company’s largest business division, continued demonstrating robust performance during the quarter. Revenue from this segment grew 12% compared to the prior year, marking the second consecutive quarter of double-digit expansion. The segment accounted for 31.6% of total company revenue. Additionally, the company improved its profitability metrics, with adjusted operating margin expanding by 40 basis points on a year-over-year basis to reach 16.0%.
Looking forward, Cognizant raised its full-year outlook for 2026. The company now projects constant currency revenue growth between 4.0% and 5.5%, with total revenue expected to range from $22.04 billion to $22.35 billion. Adjusted earnings per share guidance was increased to a range of $5.70 to $5.82, with the midpoint of $5.76 slightly exceeding the consensus analyst estimate of $5.71. For the third quarter, the company expects revenue between $5.60 billion and $5.68 billion, representing year-over-year growth of approximately 3.4% to 4.9%.
The company demonstrated capital allocation activity during the quarter, repurchasing approximately $1.1 billion of its own shares. Cognizant also completed a $634 million acquisition of Astreya to expand its technology services capabilities. Trailing 12-month bookings increased 5% year over year to $29.1 billion, reflecting continued client demand for digital transformation and artificial intelligence services.
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