Cognizant lifts full-year EPS target as Q2 revenue climbs 4.5% and a $230M–$320M restructuring gets underway

summarizeSummary

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.

check_boxKey Events · Earnings and Guidance · CTSH

• 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.

• 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.

• 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.

• $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.

auto_awesomeAnalysis · 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.