Cognizant Lowers 2026 Revenue Guidance Despite Second-Quarter Growth

Cognizant Technology Solutions lowered its full-year 2026 revenue growth guidance to a range of 4-5.5%, down from a previous estimate of 4-6.5%. The company also forecast third-quarter revenue between $5.60 billion and $5.68 billion, which missed the average analyst estimate of $5.70 billion. The updated annual revenue guidance now ranges from $22.04 billion to $22.35 billion.

These adjustments follow a trend of cautious discretionary IT spending and a macroeconomic environment where enterprises are prioritizing data center infrastructure over software to accelerate AI adoption. Despite the lowered outlook, the company reported second-quarter revenue of $5.5 billion, a year-on-year increase of 4.1% in constant currency terms. Financial services emerged as the strongest sector with 11.7% growth.

Net profit for the quarter decreased 1.4% to $636 million. This decline was partially driven by $84 million in charges related to the Project Leap initiative, including $56 million in employee separation costs. The company ended the quarter with 356,700 employees, an increase of 12,900 people over the previous year. Shares of the company fell 3% in premarket trading following the announcement.