Cognizant reported a 5.8 percent increase in revenue to $5.4 billion in the first quarter of 2026, driven by steady demand across key verticals and continued momentum in AI-led digital transformation.
Among industry segments, Financial Services remained the largest contributor with $1.644 billion in revenue, followed by Health Sciences at $1.579 billion. Products and Resources generated $1.321 billion, while Communications, Media and Technology contributed $869 million.
Geographically, North America dominated with $4.052 billion in revenue, while Europe contributed $1.039 billion and the Rest of the World added $322 million.
Cognizant reported strong deal momentum, with trailing twelve-month bookings rising 11 percent year-over-year to $29.6 billion, translating into a book-to-bill ratio of 1.4x. First-quarter bookings surged 21 percent, including seven large deals worth over $100 million each, with one mega deal exceeding $500 million.
Workforce metrics remained stable, with voluntary attrition in Tech Services at 12.3 percent for the trailing twelve months ended March 31, 2026. Total headcount reached 357,600, increasing by 6,000 sequentially and 21,300 year-over-year.
Project Leap
To accelerate its AI transformation, Cognizant introduced Project Leap in Q2 2026, aimed at reshaping its operating model through AI-driven productivity, integrated offerings, and workforce upskilling. The initiative is expected to deliver in-year savings of approximately $200 million to $300 million in 2026.
The company expects to incur restructuring costs of $230 million to $320 million, primarily driven by employee-related expenses of $200 million to $270 million and additional charges of $30 million to $50 million.
Cognizant said the savings from Project Leap will support improved profitability, raising its 2026 adjusted operating margin expansion guidance to 20 to 40 basis points, compared to the earlier outlook of 10 to 30 basis points.
For the second quarter of 2026, Cognizant expects revenue in the range of $5.45 billion to $5.52 billion, reflecting growth of 3.8 percent to 5.3 percent. For the full year, revenue is projected between $22.11 billion and $22.64 billion, representing growth of 4.8 percent to 7.3 percent, supported by continued investments in AI and digital capabilities.
RAJANI BABURAJAN
