Teaneck-headquartered IT services firm Cognizant reported first-quarter revenue of $5.4bn for fiscal 2026, marking a 6% year-on-year increase, or 3.9% in constant currency.
These results sit in the upper half of the company's previous guidance range, reflecting steady execution despite a complex macroeconomic environment where client spending remains measured.
Operating margin for the quarter stood at 15.6%, which was flat on an adjusted basis and down 110 basis points compared to the previous year.
1 April 2026
Get the latest issue of Outlook Business
AI Acquisition Strategy
In a strategic move to strengthen its technical capabilities, Cognizant has agreed to acquire Astreya for approximately $600mn. Astreya is an IT services and technology provider specialising in AI infrastructure and data center services.
The acquisition is intended to bolster Cognizant’s offerings as clients increase spending on generative AI technologies. The deal is expected to be formally announced on April 29 and close in the second quarter of 2026, pending regulatory approvals.
This expansion comes as Cognizant, currently valued at $26bn, has lost more than one-third of its market value this year due to AI-driven deflation fears and a weak demand outlook.
Strong Deal Momentum
Operational momentum was supported by strong bookings, which grew 21% year-on-year during the quarter. The company signed seven large deals, including one mega deal, resulting in a total contract value for large deals that grew over 70% year-on-year.
Moneycontrol reported that the company’s AI-led strategy is gaining traction, with over 5,000 AI engagements currently underway and nearly 40% of code now being AI-assisted.
Among business verticals, Financial Services led performance with 12.4% growth. Communications, Media and Technology grew 8.1%, while Health Science remained nearly flat at 0.5%.
Geographically, North America grew 5.1% and the Rest of the World expanded by 9.4%. The company’s total headcount rose to 357,600 employees, an increase of over 21,000 year-on-year, while attrition remained stable at 12.3%. For the full year 2026, Cognizant projects revenue growth between 4.8 and 7.3%.
AI Demand Drives Strategy
According to a Cognizant study with Oxford Economics published in 2025, AI-driven consumers could generate $4.4trn in spending by 2030, with AI influencing nearly half of transactions.
"Enterprises are balancing the demand for convenience with the need for control and trust. Understanding these attitudes is crucial for developing AI solutions that not only enhance convenience but build confidence in the full potential of how AI can reimagine the customer experience and unlock tremendous value," Ravi Kumar S, CEO of Cognizant stated in the news release.
Cognizant’s push into AI infrastructure aligns with this shift, as enterprises scale investments to capture emerging digital demand.
