Published: [October 30, 2026]
StartupFeed Quick Take
- Cognizant Q3 results show net profit of $627 Mn against $274 Mn a year earlier, while pre-tax income fell 2.7% to $863 Mn
- Headcount rose 3,200 in the quarter to 359,900, with about 32,000 of those jobs in the United States
- Full-year growth guidance cut to 4.0% to 4.4% in constant currency, the second cut in 2026
Cognizant reported a net profit of $627 Mn for the September quarter, more than double the $274 Mn it posted a year earlier.
The jump came from tax, not growth. Its third-quarter earnings release shows the tax provision fell to $237 Mn from $613 Mn. Pre-tax income slipped 2.7%, to $863 Mn from $887 Mn.
A year earlier Cognizant had booked a one-time tax charge of $390 Mn after a US law change. Adjusted net income this quarter was $670 Mn, against $675 Mn.
Revenue rose 4.6% to $5,664 Mn from $5,415 Mn. In constant currency the gain was 4.8%. The forecast for the year was cut for the second time in 2026.
Jatin Dalal, who runs finance at Cognizant, pointed to the adjusted number instead:
“Adjusted EPS grew 7%, exceeding revenue growth both in the quarter and year-to-date.”
Jatin Dalal, chief financial officer, Cognizant. From the third-quarter earnings release, October 29, 2026.
Guidance Cut Twice in Nine Months
Cognizant now expects full-year revenue of $22.05 Bn to $22.14 Bn. That is growth of 4.0% to 4.4% in constant currency.
The floor has not moved all year. The ceiling has dropped 210 basis points since February, from 6.5% to 4.4%.
| Guidance date | Constant currency growth | What changed |
|---|---|---|
| February 4, 2026 | 4.0% to 6.5% | First guidance for 2026 |
| April 29, 2026 | 4.0% to 6.5% | Left unchanged |
| July 29, 2026 | 4.0% to 5.5% | Top end cut by 100 basis points |
| October 29, 2026 | 4.0% to 4.4% | Top end cut by 110 basis points |
For the December quarter, Cognizant guided to revenue of $5.49 Bn to $5.57 Bn. That is growth of 3.2% to 4.7% in constant currency.
The cut has two causes. Macro pressure hit health care and consumer-facing clients harder than planned. The forecast also assumes a bigger furlough effect in December than earlier expected.
Health sciences revenue fell 0.9% in constant currency. Products and resources fell 0.8%. Both serve clients facing funding and supply pressure.
Bookings Rose 4% Over the Year, Fell 7% in the Quarter
Financial services revenue grew 12.3% in constant currency, a third straight quarter of double-digit growth. Communications, media and technology grew 10.7%.
Bookings over the past twelve months rose 4% to $28.7 Bn, a book-to-bill of about 1.3 times. September quarter bookings alone fell 7% from a year earlier.
Cognizant signed three deals worth more than $100 Mn each in the quarter. New and expanded business now makes up 60% of the twelve-month booking mix, up more than 10 points.
Adjusted operating margin reached 16.3%, up 30 basis points and the highest in four years. GAAP operating margin moved the other way, down 60 basis points to 15.4%.
Project Leap explains the gap. The restructuring plan cost $51 Mn in the quarter, $46 Mn of it
. Total cost is now put at $180 Mn to $250 Mn, down from $320 Mn.
What Cognizant Q3 Results Mean for India Hiring
Cognizant ended September with 359,900 staff, 3,200 more than in June and 10,100 more than a year earlier. About 32,000 of them work in the United States. That is fewer than 9 in 100.
Most of the rest work in India. Ravi Kumar S, chief executive of Cognizant, said after the results that nearly 20,000 fresh graduates had been hired this year. Volumes are steady and moving further offshore, he added.
The US plan is smaller. Cognizant plans to hire 1,500 US college graduates and build a frontier engineer and business operator workforce of 15,000.
Attrition over twelve months was 12.6%, down from 13.0% in June. A recent two-week induction took in 489 graduates from 58 business schools, run in Chennai, Bengaluru, Hyderabad and Pune.
One US rule matters here. The Department of Labor has suspended new PERM green card filings for some firms, Cognizant included. That suspension is not expected to change the talent plan materially.
The India Listing Decision Now Waits on Draft Rules
Cognizant is still weighing a primary share sale and a secondary listing in India. Draft rules are expected within weeks, and a decision follows once they are public.
The draft goes out for comment first. So publication starts a clock, it does not end one.
A listing would matter for Indian investors. It would open direct access to a firm whose delivery base and most of its staff sit in India.
Cognizant returned $2.3 Bn to shareholders in the first nine months through buybacks and dividends. A quarterly dividend of $0.33 a share is payable on 25 November 2026.
Two dates are worth marking. The December quarter closes on 31 December 2026, and 2027 guidance comes on the results call in early February.
What this means for you: If you are a fresher waiting on a Cognizant offer, or an IT employee tracking offshore work, this quarter sets your odds. The net intake ran at 3,200 in three months, and the 2027 hiring signal comes with guidance in early February.
StartupFeed Insight
Strip the tax line and this quarter is flat. Pre-tax income fell 2.7% and adjusted net income fell $5 Mn to $670 Mn. The headline doubling is an accounting echo of last year’s $390 Mn charge, nothing more. The number that matters for India is the mix. Cognizant is holding net intake near 3,200 a quarter while pushing volumes further offshore, and that is how a 16.3% adjusted margin was built on 4.8% growth. Watch the results call in early February 2027. If guidance opens below 4%, offshore delivery carries more of the margin load, and fresher intake is the first number that moves.
By Saraswati Chaubey, Writer
Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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