NASDAQInformation TechnologyInformation Technology ServicesSnapshot 2026-07-07
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Track CTSH free→Cognizant grows revenue about 6% a year. Profit margin is near 16%. EPS grows over 7% in 2026. AI projects support future growth.
Revenue and earnings missed targets recently. Profit margin fell from 16.7% to 15.6%. AI transition risks may hurt growth. The stock is down 30%.
The price is about 35% below our fair value near $67. Analysts expect 6% revenue growth. The market prices in cautious growth and some risks.
Breaks if: EPS falls below $5.22 in FY26
Target growth in adjusted diluted EPS by 7% to 9% for 2026.
Stated in 4 of last 4 quarters. Adjusted EPS grew from $1.23 in 2025-Q1 to $1.40 in 2026-Q1, reflecting a 13.8% increase. The trajectory indicates successful delivery on the EPS growth priority.
Breaks if: Operating margin falls below 15.6% in FY26
Aim to expand adjusted operating margin by 20 to 40 basis points in 2026.
Stated in 4 of last 4 quarters. Operating margin decreased from 16.7% in 2025-Q1 to 15.6% in 2026-Q1. Despite the stated priority to expand margins, the trajectory shows a decline, indicating limited progress.
Breaks if: Project Leap progress stalls or reverses
Implement Project Leap to streamline operations and enhance productivity.
Breaks if: Revenue falls below $21.07 billion in FY26
Focus on achieving revenue growth in the upper half of guidance range.
Stated in 4 of last 4 quarters. Revenue grew from $5.11B in 2025-Q1 to $5.41B in 2026-Q1. The trajectory shows consistent growth, aligning with management's stated priority of achieving revenue growth in the upper half of guidance.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“CFO: 'Drove double-digit adjusted EPS growth that outpaced revenue.'”
“Adjusted Diluted EPS is expected to be in the range of $5.56 to $5.70.”
“Adjusted Diluted EPS of $1.23.”
“Adjusted Diluted EPS is expected to be in the range of $5.08 to $5.22.”
“CFO: 'Expanded our adjusted operating margin year-over-year.'”
“Adjusted Operating Margin guidance is approximately 15.9% to 16.1%.”
“Adjusted Operating Margin of 15.5%.”
“Adjusted Operating Margin is expected to be in the range of 15.5% to 15.7%.”
“CEO: 'We delivered first quarter revenue growth in the upper half of our guidance range.'”
“Revenue of $5.33 billion, growth of 4.8% to 6.3%.”
“Revenue of $5.42 billion, growth of 7.5% year-over-year.”
“Revenue of $5.25 billion, growth of 4.6% to 6.1%.”
