Cognizant Technology Solutions Corporation reported its financial results for the second quarter of 2026, revealing a revenue increase of $236 million, or 4.5%, compared to the same period in 2025, bringing total revenues to $5,481 million. The company’s net income for the quarter was $636 million, a slight decrease from $645 million year-over-year. Diluted earnings per share (EPS) rose to $1.36, up from $1.31 in the prior year. The operating margin improved to 15.9%, reflecting operational efficiencies and favorable foreign currency exchange movements, despite being impacted by $84 million in restructuring charges related to the newly initiated Project Leap.
In terms of strategic developments, Cognizant completed the acquisition of Astreya Partners, Inc. for $634 million, enhancing its capabilities in AI-driven IT managed services. The company also repurchased $1,153 million of its Class A common stock during the quarter, which included $500 million through accelerated share repurchase agreements. These actions are part of Cognizant's ongoing strategy to optimize its capital allocation and enhance shareholder value.
Operationally, Cognizant's workforce grew to approximately 356,700 employees, up from 343,800 a year earlier. The company reported a voluntary attrition rate of 13.0% for the trailing twelve months, slightly higher than the 12.6% reported in the previous year. The increase in employee count and the focus on AI capabilities are part of Cognizant's efforts to adapt to evolving market demands and enhance service delivery.
Looking ahead, Cognizant anticipates continued demand for its services as clients focus on transforming into AI-ready, technology-driven organizations. The company is committed to investing in its AI capabilities and expects to generate savings of approximately $200 million to $300 million from Project Leap, which will be reinvested into its integrated offerings and workforce upskilling. However, Cognizant also acknowledges potential challenges, including macroeconomic uncertainties and regulatory changes that could impact client spending and operational costs.
Overall, Cognizant's second-quarter results reflect a solid performance amid strategic acquisitions and a focus on enhancing operational efficiencies, positioning the company for future growth in a competitive landscape.
About COGNIZANT TECHNOLOGY SOLUTIONS CORP
Cognizant is a global professional services company specializing in digital transformation, IT consulting, application development, systems integration, automation, and AI solutions. It serves industries such as healthcare, financial services, manufacturing, and media, delivering tailored, industry-specific services through a global delivery model. Its core value lies in helping clients modernize technology, optimize processes, and create innovative, data-driven customer experiences.
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