Cognizant Reports 6% Increase in Q1 Revenue, Reaching $5.4 Billion, and Maintains Steady Deal Momentum

Cognizant Reports Steady Execution Amid Complex Macro Environment

Teaneck-headquartered IT services firm Cognizant Technology reported first-quarter revenue of $5.4 billion, up 6 percent year-on-year, or 3.9 percent in constant currency. Despite the complex macroeconomic environment, the company's steady execution indicates a measured client spending trend.

The company's operating margin for the quarter stood at 15.6 percent, flat on an adjusted basis and down 110 basis points year-on-year. However, bookings momentum remained strong, with trailing twelve-month bookings rising 11 percent year-on-year to $29.6 billion, translating into a book-to-bill ratio of 1.4x.

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Geographically, Cognizant's performance varied, with North America growing 5.1 percent, Europe rising 3.5 percent, and the Rest of the World expanding 9.4 percent. The company's total headcount rose to 357,600 employees, up 6,000 sequentially and over 21,000 year-on-year, with attrition remaining stable at 12.3 percent on a trailing twelve-month basis.

Cognizant also announced that it will buy Astreya, an IT services and technology provider focused on AI infrastructure and data center services, in a deal valued at around $600 million. The acquisition is expected to strengthen Cognizant's AI infrastructure capabilities and close in the second quarter of 2026 pending regulatory approvals.

The company's AI-led strategy is beginning to gain traction, with over 5,000 AI engagements underway and nearly 40 percent of code now AI-assisted. Chief Executive Ravi Kumar S emphasized the importance of this strategy in driving growth and competitiveness.

Cognizant's guidance for the second quarter and full year 2026 indicates a measured outlook, with revenue expected to rise year-on-year in the range of 3.8 percent to 5.3 percent, or 3.2 percent to 4.7 percent in constant currency. For the full year, the company guided for revenue to rise year-on-year in the range of 4.8 percent to 7.3 percent, or 4 percent to 6.5 percent in constant currency, with adjusted operating margin expected to expand to 16 to 16.2 percent.

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