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Is Cognizant’s 14% EPS Growth Durable Enough To Justify A Buy Through The Restructuring?

Cognizant Technology Solutions Corporation reported first quarter 2026 results reflecting a 3.9% year-over-year revenue growth on a constant currency basis, led primarily by strong performance in North America and fueled by newly won large deals. The Financial Services segment was a notable contributor, advancing over 10% year-over-year amid robust demand across banking and insurance sectors. Bookings increased 21% year-over-year, including seven large deals exceeding $100 million in total contract value, with one “mega” deal valued above $500 million. The company’s adjusted operating margin expanded by 10 basis points compared to the prior year, marking the fifth consecutive quarter of margin improvement. Adjusted earnings per share grew by 14%, outpacing revenue growth. Free cash flow in the quarter was approximately $200 million, impacted by seasonally higher bonus payouts. Cognizant returned about $600 million to shareholders through dividends and share repurchases, ending the quarter with approximately $1.