Research Reports

Prepared Highlights

Q1 2026 revenue $5.4B, +3.9% YoY constant currency, driven by large deal ramps in North America and Financial Services (CFO)
Financial Services segment grew >10% YoY constant currency, balanced across banking, insurance (CFO)
Health Sciences growth negatively impacted ~300 bps YoY by lower third-party product revenue; ex this, services growth in line with company (CFO)
Products & Resources stable despite macro/geopolitical/trade uncertainty (CFO)
Q1 bookings +21% YoY; signed 7 large deals ≥$100M TCV, including one mega deal >$500M (CEO, CFO)
Trailing 12-month bookings +11% YoY, book-to-bill 1.4; annual contract value flat due to longer deal duration (CFO)
Adjusted operating margin 15.6%, +10 bps YoY, fifth consecutive year-over-year expansion (CEO, CFO)
Gross margin -80 bps YoY, reflecting integrated offering strategy and higher compensation costs (CFO)
Adjusted diluted EPS $1.40, +14% YoY (CFO)
Q1 free cash flow ~$200M, impacted by larger bonus payout and typical Q1 seasonality (CFO)
Cash and short-term investments $1.5B; net cash $949M (CFO)
Project LEAP program: pre-tax savings $200–$300M in 2026, full benefit in 2027; ~2/3 reinvested in growth, ~1/3 in upskilling; expected total costs $230–$320M in 2026 (CFO)
Over 5,000 AI engagements across 3 vectors, up from ~4,000 exiting December (CEO)
New corporate investment arm: Cognizant Innovation Network, initially focused on AI, data, cybersecurity, cloud (CEO)
Acquired [Atria] – global IT managed services provider, specialist in AI infrastructure (CEO)

Official Guidance

Q2 2026 revenue: +3.2% to +4.7% YoY constant currency (includes ~150 bps from recent acquisitions) (CFO)
Full-year 2026 revenue: unchanged at +4.0% to +6.5% constant currency (CFO)
Full-year 2026 adjusted operating margin: 16.0% to 16.2% (20–40 bps YoY expansion) (CFO)
Full-year 2026 adjusted diluted EPS: $5.63 to $5.77 (+7% to +9% YoY) (CFO)
Full-year 2026 free cash flow conversion: 90% to 100% of net income (CFO)
Full-year 2026 tax rate: 25% to 26% (CFO)
2026 capital return: ~$1.6B, including $1B in share repurchases and remainder as dividend (CFO)

Mgmt Quotes

CEO: "Our conviction in the long-term opportunity emerging with enterprise AI adoption has never been stronger." (prepared)
CEO: "We are reforging our first principles, enabling an AI Era future operating model… We remain confident the portfolio and capabilities we are assembling can drive sustained progress towards Winner Circle performance." (prepared)
CFO: "While the macro environment remains uncertain, our momentum is clear, and we believe we are winning in the marketplace." (prepared)
CFO: "This program [Project LEAP] is designed to accelerate our transformation to the operating model of the future by funding investments in our AI capabilities and partnerships." (prepared)
CEO: "Market conditions have become more complex since the start of the year, and we expect the impact from heightened macroeconomic uncertainty to persist in the near term." (prepared)

Prepared Metrics

Metric	Value	Speaker/Context
Q1 revenue	$5.4B	CFO
Q1 revenue growth (constant currency)	+3.9% YoY	CFO
Financial Services segment growth (constant currency)	>10% YoY	CFO
Q1 bookings growth	+21% YoY	CEO, CFO
Large deals ≥$100M signed in Q1	7	CEO, CFO
Mega deal ≥$500M signed in Q1	1	CEO, CFO
Trailing 12-month book-to-bill	1.4	CFO
Q1 adjusted operating margin	15.6% (+10 bps YoY)	CFO
Q1 gross margin change	-80 bps YoY	CFO
Q1 adjusted diluted EPS	$1.40 (+14% YoY)	CFO
Q1 free cash flow	~$200M	CFO
Cash and short-term investments	$1.5B	CFO
Net cash	$949M	CFO
Q1 DSO	84 days	CFO
AI engagements	>5,000 (up from ~4,000 exiting Dec)	CEO
AI-assisted code	~40%	CEO
Total U.S. AI Lab patents	65	CEO
Total global AI Lab patents	88	CEO
2026 fresher hires	>20,000 (2025 baseline; plan to hire greater number in 2026)	CEO
Project LEAP 2026 pre-tax savings	$200–$300M	CFO
Project LEAP expected 2026 costs	$230–$320M (employee severance: $200–$270M; other: $30–$50M)	CFO
2026 adjusted operating margin guidance	16.0%–16.2%	CFO
2026 adjusted EPS guidance	$5.63–$5.77	CFO
2026 free cash flow conversion guidance	90%–100% of net income	CFO
2026 tax rate guidance	25%–26%	CFO
2026 expected diluted share count	~473M	CFO
2026 capital return target	~$1.6B ($1B repurchases + dividend)	CFO
Trailing 12-month revenue per employee	+2.5%	CEO
Trailing 12-month adjusted operating margin per employee	+5%	CEO

Q&A Batch (1-5 of 5)

Q1 — Jason Kupferberg

Topic: 订单增长、大型交易构成、2026年指引假设及定价竞争
Key points:
- 不拆分新业务与续约，但大型交易增长由新机会（现有客户或新客户）驱动；前7大交易TCV（总合同价值）超过1亿美元，1笔超级交易超过5亿美元，大型交易TCV同比增长70%。
- 2026年指引中点假设下半年酌情支出略有改善；大型交易（Q4和Q1赢得的）将在6月/7月达到满负荷；收购Estia将在Q3全面贡献收入。
- 40%的软件开发周期由AI辅助；AI已融入费率卡，通过生产力共享赢得整合机会。
Mgmt stance: 乐观——订单连续两季强劲，为三年最高；AI生产力使公司在定价竞争中保持优势；大型交易和收购为下半年提供能见度。

Q2 — James Schneider

Topic: AI代币计量、生产力收益对利润率的影响、成本传递机制
Key points:
- 代币计量已在项目和个人层面落实，适用于固定价格和按时间计费合同。
- 固定价格合同中，可通过降低成本保留利润；新交易中AI以提高产出/单元数竞争。
- 未详细说明当前利润杠杆是否被启动成本掩盖，但强调AI辅助软件开发可优化单元数。
Mgmt stance: 乐观——代币计量和AI驱动的新型定价模式（按单元数）将提升竞争力，公司已做好准备。

Q3 — Jatin Dalal

Topic: 毛利率下降原因及全年改善预期
Key points:
- Q1毛利率较低源于三个投资：1）增加员工（新招应届生）导致利用率下降；2）集成服务交付中第三方成本上升（作为系统集成商）；3）11月加薪的1个月影响。
- 预计毛利率将在年内持续改善，因其旨在通过交付模式节省成本。
Mgmt stance: 中性偏乐观——投资是战略性的，全年毛利率将回升；项目目标是通过交付模式驱动成本节省。

Q4 — James Faucette

Topic: 并购估值、资本配置、AI战略下的客户类型
Key points:
- 2025年自由现金流25亿美元，已承诺回购10亿美元、分红6亿美元，其中回购已使用约6亿美元（剩余4亿美元）；资产负债表健康，可利用杠杆。
- 并购聚焦平台型、结果导向的资产（如Atria提供按用户计价的数据中心服务）；TriZetto业务增长快于2023年，且利润率极高。
- 客户特征：金融服务（双位数增长）推动向量1生产力及新产品创新；整合机会（Fortune 500减少供应商）；解锁技术债（主机现代化成本从10美元/行升至150美元/行）。
Mgmt stance: 乐观——当前是创造价值的并购良机，并购围绕AI平台战略；资本分配有充足燃料；客户愿意在AI和新领域合作。

Q5 — Tien-Tsin Huang

Topic: 项目LEAP的范围、短期/中期成果、对利润率的影响
Key points:
- LEAP旨在加速实现未来运营模型：重塑员工金字塔（多招应届生、减少中间层），以AI原生方式交付服务。
- 今年节省2亿–3亿美元（部分影响，因年中开始），对2027年影响更大；同时将部分节省再投资于增长。
- 2025年利润率提升50个基点；2026年利润率指引从10-30个基点上调至20-40个基点。
Mgmt stance: 乐观——LEAP使公司更快达到优化运营模型，支持利润率扩张