Cognizant Technology Solution Corp. (CTSH.O): Watching 4Q26 Revenue Ramp

Citi previews Cognizant's 3Q26 results, expecting a relatively steady quarter with organic cc revenue growth of 2.5% Y/Y, broadly in line with consensus and the implied 1.8%-3.3% guidance, while Project Leap supports adjusted operating margin (16.2% in 3Q, 16.6% in 4Q). The key debate centers on 4Q, where Citi expects management to guide 5.9%-7.4% Y/Y cc revenue growth (implying 3.9%-5.4% organic cc growth versus Citi's 4.6%), driven by ramps of previously won large deals, additional billable days and lighter furloughs rather than a broad demand recovery. Financial Services remains the growth engine, while CMT headwinds appear to be stabilizing. FY26 cc revenue guidance is expected to narrow to 4.25%-5.25%, with adjusted EPS converging around the $5.76 midpoint. Citi remains Neutral but raises its target price to $68 from $60 on higher peer multiples.