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Research Alert: Ctsh Delivers Impressive Bookings Acceleration, With Strong Margin Performance

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

CTSH posted Q1 sales of $5.41B (+6% Y/Y), matching expectations, +4% ex-FX (matching Q4). Adjusted EPS of $1.40 beat the Street view ($1.33), with 10 bps of Y/Y operating margin expansion (to 15.6%) due to efficiency gains, including AI generating ~40% of company code (vs. ~30% prior estimates). FY 26 guidance was raised slightly with constant currency revenue growth of 4%-6.5% unchanged but operating margin improved to 16.0%-16.2% from a prior 15.9%-16.1% (EPS midpoint up $0.07 to $5.70). We see resilience given elevated macro uncertainty and AI competition fears, with medium-term support from continued strong bookings momentum, which grew 11% Y/Y to $29.6B on a TTM basis, accelerating from 5% growth in 2025. CTSH booked seven deals above $100M in Q1, with large deal contract value up 70% Y/Y. Employee metrics remain strong with voluntary attrition remaining steady at 12.3% and utilization improving to 85% (+200 bps Q/Q, flat Y/Y). CTSH is acquiring Astreya (AI-first managed services) for an undisclosed sum.

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