2Q26 Preview: Lackluster Peer Results Push Us To Proactively Lower Revenue To Lower-End of Guidance Range; Watching India Listing Catalyst

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2Q26 Preview: Lackluster Peer Results Push Us To Proactively Lower Revenue To Lower-End of Guidance Range; Watching India Listing Catalyst

J P M O R G A N North America Equity Research

24 July 2026

Cognizant

2Q26 Preview: Lackluster Peer Results Push Us To Overweight

Proactively Lower Revenue To Lower-End of Guidance CTSH, CTSH US

Range; Watching India Listing Catalyst Price (23 Jul 26):$43.01

▼Price Target (Dec-26):$55.00

Prior (Dec-26):$74.00

CTSH is set to report 2Q results on July 29, and the setup is pressured by lackluster

peer results pointing to ongoing softness in discretionary client spending. Recall Payments, Processors & IT Services

that Cognizant’s FY26 guidance assumes a slightly better discretionary Tien-tsin Huang, CFA AC

environment in 2H, so it's fair to assume that there is some risk to the midpoint of (1-212) 622-6632

CTSH’s guide. As such, we’re proactively moving close to the low-end of the tien-tsin.huang@jpmorgan.com

$22.11-22.64B FY26 revenue range, implying 2.3% FXN organic growth (vs 2.7% Puneet Jain

prior). Similarly for 2Q, we’ve trimmed our estimates to be in the lower half, (1-212) 622-1436

puneet.x.jain@jpmorgan.com

reducing revenue from the delayed Astreya deal. On the bright side, we expect

Brendan Biles

large deal momentum to continue and margins to be in-line (Project Leap should

(1-212) 270-0880

help). The stock is likely bracing for guidance to be reset to the low-end, so absent brendan.biles@jpmorgan.com

a deeper cut (or no cut at all), we think stock sentiment will likely move more on Abbey Hochreiner

go/no-go commentary on potential India listing to help narrow the valuation gap (1-212) 270-5798

vs. large-cap Indian peers (7x NTM PE vs. 13-14x for peers). abbey.hochreiner@jpmchase.com

J.P. Morgan Securities LLC