Technology
Price
$41.99
+2.24%Market Cap
$19.9B
Day High
$42.59
Day Low
$41.41
Cognizant Technology Solutions delivered 5.8% revenue growth to $5.41B in Q1 2026, but operating margin contracted 110 bps to 15.6% and operating cash flow fell 31.5% YoY, reflecting rising cost pressures even as EPS edged up 3.7% to $1.39.
Key risk: Operating Cash Flow Deterioration
Operating cash flow dropped sharply by 31.5% YoY to $274M, which could signal working capital headwinds such as slower collections or higher upfront project costs. Sustained deterioration in cash conversion could limit Cognizant's financial flexibility for investments and buybacks.
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