For the quarter ended March 2025, Cognizant (CTSH) reported revenue of $5.12 billion, up 7.5% over the same period last year. EPS came in at $1.23, compared to $1.12 in the year-ago quarter.The reported revenue represents a surprise of +0.95% over the Zacks Consensus Estimate of $5.07 billion. With the consensus EPS estimate being $1.19, the EPS surprise was +3.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their nex ...

Cognizant (CTSH) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.36%. A quarter ago, it was expected that this information technology consulting and outsourcing firm would post earnings of $1.12 per share when it actually produced earnings of $1.21, delivering a surprise of 8.04%.Ov ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 0-24429 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware 13-3728359 (S ...

Cognizant Technology Solutions (CTSH) Q1 2025 Earnings Call April 30, 2025 05:00 PM ET Company Participants Tyler Scott - Vice President, Investor RelationsRavi Kumar S - CEOJatin Dalal - Chief Financial OfficerRamsey El-Assal - Managing DirectorDarrin Peller - Managing Director Conference Call Participants Tien-tsin Huang - Senior AnalystJim Schneider - Senior Equity AnalystBryan Keane - Managing Director, Senior Equity Analyst - Payments, Processors, and IT ServicesMaggie Nolan - Research Analyst - Techno ...

Financial Data and Key Metrics Changes - First quarter revenue grew by 8.2% year over year in constant currency to $5,100 million, driven by the Belcan acquisition and organic growth in Health Sciences and Financial Services [6][25] - Adjusted Operating Margin improved by 40 basis points year over year to 15.5%, on track to achieve full year guidance of 20 to 40 basis points of expansion [8][32] - Adjusted EPS grew 10% year over year, marking the sixth consecutive quarter of year over year growth [8][25] Business Line Data and Key Metrics Changes - Health Sciences revenue increased over 11% year over year in constant currency, with broad-based growth across payer, provider, and life sciences [7][28] - Financial Services segment grew 6.5% year over year in constant currency, with healthy discretionary spending as clients invested in cloud and data modernization [7][28] - Products and Resources segment growth was driven by Welch, but overall demand environment remained weak due to discretionary spending pressures [29] Market Data and Key Metrics Changes - North America revenue grew 10% year over year in constant currency, driven by Belcan and large deals [30] - Europe revenue increased by 3% year over year in constant currency, supported by life sciences and financial services clients [30] - The Rest of the World saw a 7% year over year increase in constant currency, driven by large deals in Communications, Media, and Technology [31] Company Strategy and Development Direction - The company is investing heavily in AI-powered software-led engineering, integrating expertise in embedded software and IoT with capabilities from recent acquisitions [10][21] - Strategic imperatives include amplifying talent, scaling innovation, and accelerating growth, with a focus on AI and embedded engineering [16][19] - The company aims to build a resilient and durable organization that can thrive in both slow and high-velocity markets [5][9] Management's Comments on Operating Environment and Future Outlook - The macro environment has changed sharply, leading to elevated uncertainty, but the company sees opportunities related to productivity and efficiency [9][26] - Management remains optimistic about the pipeline for large deals and believes the current environment presents opportunities for cost optimization and vendor consolidation [26][39] - The company expects revenue growth of 3.5% to 6% in constant currency for the full year 2025, with adjusted operating margin guidance of 15.5% to 15.7% [36][37] Other Important Information - The company has approximately 1,400 early Gen AI engagements, reflecting a strong focus on AI-led productivity [11][12] - The company plans to establish a 14-acre immersive learning center in Chennai, India, to train 100,000 individuals annually in advanced AI technologies [17][20] - The company returned $364 million of capital to shareholders through share repurchases and dividends during the quarter [35] Q&A Session Summary Question: Shift in bookings and pipeline quality - Management noted that productivity gains from leveraging AI are leading to new deals and opportunities for consolidation, particularly in financial services [42][44] Question: April slowdown in decision-making - Management indicated that while there is some caution in health and products and resources sectors, financial services remain strong, and the impact is seen as isolated [56][57] Question: Organic growth and headcount changes - Management confirmed that organic growth has been driven by healthcare and financial services, with a significant improvement in utilization from 82% to 85% [64][90] Question: Confidence in cost takeout deals - Management expressed confidence that the current environment is conducive for closing cost takeout deals, despite some delays in mega deals [93]

© 2025 Cognizant Forward-looking statements This earnings supplement includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, competitive p ...

Revenue Performance - Revenue for Q1 2025 was $5,115 million, a 7.5% increase year-over-year, and 8.2% in constant currency[3] - Revenues for Q1 2025 were $5,115 million, a 7.4% increase from $4,760 million in Q1 2024[28] - Total revenues for the three months ended March 31, 2025, were $5,115 million, representing a year-over-year increase of 7.5%[39] - Full-year 2025 revenue is expected to be between $20.5 billion and $21.0 billion, representing growth of 3.9% to 6.4%[12] - Q2 2025 revenue guidance is set between $5.14 billion and $5.21 billion, indicating growth of 5.9% to 7.4%[12] Profitability Metrics - GAAP operating margin improved to 16.7%, up 210 basis points year-over-year, while adjusted operating margin increased to 15.5%, up 40 basis points[6] - GAAP diluted EPS rose to $1.34, a 22% increase year-over-year, and adjusted diluted EPS increased to $1.23, a 10% rise[6] - Adjusted Operating Margin for Q1 2025 was 15.5%, up from 15.1% in Q1 2024[32] - Adjusted Diluted Earnings Per Share (EPS) for Q1 2025 was $1.23, compared to $1.12 in Q1 2024, representing a 9.8% increase[32] - The company anticipates full-year 2025 Adjusted Diluted EPS guidance of $4.98 to $5.14[32] Shareholder Returns - The company returned $364 million to shareholders through share repurchases and dividends, with a planned return of $1.7 billion for 2025[6] - The company repurchased 2.3 million shares under its stock repurchase program during the quarter, with a remaining authorized balance of $3,047 million[44] Bookings and Growth Indicators - Trailing 12-month bookings reached $26.7 billion, reflecting a 3% year-over-year increase, with a book-to-bill ratio of approximately 1.3x[8] - The book-to-bill ratio is a key indicator of potential future revenues, with large deals defined as those with a total contract value of $100 million or greater[25] Segment Performance - The Health Sciences segment generated $1,571 million in revenue, a 10.9% increase year-over-year, contributing 30.7% to total revenues[39] - North America accounted for $3,854 million, or 75.3% of total revenues, with a year-over-year growth of 9.5%[39] - The Products and Resources segment saw a revenue increase of 12.8% year-over-year, aided by recent acquisitions contributing approximately 400 basis points to overall revenue growth[40] Financial Position - Net income for Q1 2025 was $663 million, compared to $546 million in Q1 2024, reflecting a 21.4% year-over-year growth[28] - Total current assets as of March 31, 2025, were $7,545 million, slightly up from $7,504 million at the end of 2024[30] - Total liabilities decreased to $5,068 million as of March 31, 2025, from $5,558 million at the end of 2024[30] - Cash and cash equivalents were $1,980 million as of March 31, 2025, down from $2,231 million at the end of 2024[30] - Long-term debt decreased from $875 million at December 31, 2024, to $567 million as of March 31, 2025[37] Cash Flow - Net cash provided by operating activities was $400 million, compared to $95 million in the same period last year[42] - Free cash flow for the three months ended March 31, 2025, was $393 million, significantly up from $16 million in the prior year[46] - The company experienced a net cash used in investing activities of $7 million, compared to $238 million in the prior year[42] Strategic Initiatives - Cognizant's recent acquisitions contributed approximately 400 basis points to year-over-year revenue growth[3] - The company plans to establish a Cognizant Immersive Learning Center in Chennai, India, aimed at training 100,000 individuals annually[16] - Cognizant has entered into several strategic partnerships, including with Boehringer Ingelheim and Citizens Financial Group, to enhance technology capabilities and operational efficiencies[13]

Revenue of $5.1 billion increased 7.5% year-over-year or 8.2% in constant currency1, above the high end of our guidance range Operating margin of 16.7% increased 210 basis points year-over-year; Adjusted Operating Margin1 of 15.5% increased 40 basis points year-over-year GAAP EPS of $1.34 increased 22% year-over-year; Adjusted EPS of $1.23 increased 10% year-over-year Trailing 12-month bookings of $26.7 billion increased 3% year-over-year Returned $364 million to shareholders through share repurchases and ...

The upcoming report from Cognizant (CTSH) is expected to reveal quarterly earnings of $1.19 per share, indicating an increase of 6.3% compared to the year-ago period. Analysts forecast revenues of $5.07 billion, representing an increase of 6.5% year over year.The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a ...

Cognizant Technology Solutions (CTSH) is scheduled to report its first-quarter 2025 results on Wednesday.The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.19 per share, which has remained unchanged in the past 30 days. This indicates an increase of 6.25% from the figure reported in the year-ago quarter. Cognizant expects first-quarter 2025 revenues between $5 billion and $5.1 billion, increasing 5.6%-7.1% and 6.5%-8% on a cc basis. The Zacks Consensus Estimate for first-quarter re ...