Cognizant lifts full-year EPS target as Q2 revenue climbs 4.5% and a $230M–$320M restructuring gets underway
CTSH sits 34% above its 52-week low of $37.08.
Summary
Cognizant posted Q2 revenue of $5.48B (+4.5% YoY), raised full-year adjusted EPS guidance to $5.70–$5.90, and launched a $230M–$320M restructuring program (Project Leap) while aggressively buying back stock.
Key Events · Earnings and Guidance · CTSH
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Q2 Revenue +4.5% to $5.48B
Revenue rose 4.5% year-over-year (4.1% in constant currency), driven by large deal ramp-ups, AI/analytics demand, and recent acquisitions. Financial Services led with 12% growth.
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Full-Year EPS Guidance Raised
Adjusted diluted EPS guidance increased to $5.70–$5.90, up from prior outlook, reflecting confidence in operational momentum and cost efficiencies.
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Project Leap Restructuring Launched
Cognizant initiated a $230M–$320M restructuring program (Project Leap) to streamline operations and fund AI investments. Q2 charges were $84M, with $200M–$270M in expected severance costs.
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$81M Benefit from India Pension Liability Reversal
A one-time $81M benefit was recorded in SG&A after Indian labor law changes eliminated a legacy defined contribution obligation, partially offsetting restructuring costs.
Analysis · CTSH · Technology
A solid second quarter saw revenue advance 4.5% to $5.48 billion, prompting Cognizant to raise its full-year adjusted EPS outlook to $5.70–$5.90. The period was shaped by two large, offsetting items: an $84 million charge tied to the newly launched Project Leap restructuring and an $81 million benefit from the reversal of a legacy India pension liability. Beneath the surface, operating margins improved on efficiency gains and a weaker rupee. The company also deployed $1.15 billion on buybacks, drew $1 billion on its credit line, and closed the Astreya acquisition — signaling confidence in its capital position even as it embarks on a major workforce overhaul.
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At the time of this filing, CTSH was trading at $49.53 on NASDAQ in the Technology sector, with a market capitalization of approximately $23.8B. The 52-week trading range was $37.08 to $87.03. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.