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]

Core Insights - Cognizant reported strong financial performance in Q1 2025, with revenue of $5.115 billion, reflecting a year-over-year increase of 7.5% and 8.2% in constant currency [3][9][40] - The company achieved a GAAP operating margin of 16.7%, up 210 basis points from the previous year, and an adjusted operating margin of 15.5%, which increased by 40 basis points year-over-year [3][9][40] - GAAP diluted EPS rose to $1.34, a 22% increase year-over-year, while adjusted diluted EPS increased by 10% to $1.23 [3][9][40] Financial Performance - Revenue growth was driven by recent acquisitions, contributing approximately 400 basis points to overall revenue growth [3][44] - The company returned $364 million to shareholders through share repurchases and dividends in Q1 2025, with a planned return of $1.7 billion for the full year [5][11] - Bookings for the trailing twelve months increased by 3% year-over-year to $26.7 billion, with a book-to-bill ratio of approximately 1.3x [6][9] Operational Highlights - The first quarter performance demonstrated strong operational rigor amid elevated uncertainty, with revenue exceeding guidance and adjusted operating margin expansion [5][9] - The company expects second quarter revenue to be between $5.14 billion and $5.21 billion, representing growth of 5.9% to 7.4% [15] - Full-year 2025 revenue guidance remains unchanged at $20.5 billion to $21.0 billion, with expected growth of 3.9% to 6.4% [15] Strategic Initiatives - Cognizant is focusing on AI-led transformation, leveraging its differentiated AI and platform capabilities to assist clients in navigating macroeconomic challenges [2][14] - Recent client agreements and partnerships include collaborations with Boehringer Ingelheim, Citizens Financial Group, and Docusign, aimed at enhancing operational efficiencies and driving innovation [16][20] - The company plans to establish a Cognizant Immersive Learning Center in Chennai, India, to train 100,000 individuals annually, reflecting its commitment to workforce development [20]

Group 1 - 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 [1] - Analysts forecast revenues of $5.07 billion, representing an increase of 6.5% year over year [1] - The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days, reflecting a reevaluation of initial estimates by analysts [1] Group 2 - The consensus estimate for 'Revenue- Products and Resources' stands at $1.27 billion, suggesting a change of +12.2% year over year [4] - The average prediction for 'Revenue- Health Sciences' is $1.55 billion, indicating a change of +9.7% from the year-ago quarter [4] - Analysts suggest that 'Revenue- Financial services' will likely reach $1.43 billion, with a change of +3.2% from the year-ago quarter [4] Group 3 - The consensus among analysts for 'Revenue- Communications, Media and Technology' is expected to reach $835.39 million, indicating a year-over-year change of +1.1% [5] - Shares of Cognizant have demonstrated returns of -5.1% over the past month compared to the Zacks S&P 500 composite's -0.8% change [5] - Cognizant holds a Zacks Rank 3 (Hold), indicating expectations to mirror overall market performance in the near future [5]

Core Viewpoint - Cognizant Technology Solutions is expected to report first-quarter 2025 results with earnings estimated at $1.19 per share, reflecting a 6.25% increase year-over-year, and revenues projected between $5 billion and $5.1 billion, indicating a growth of 5.6%-7.1% [1][2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $5.07 billion, representing a year-over-year increase of 6.47% [2] - Cognizant has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 5.76% [2] Factors Influencing Performance - The company's performance is likely to benefit from an expanding clientele and a strong pipeline, having secured 10 large deals in Q4 2024, up from seven the previous year, totaling 29 large deals for the year [3] - Investment in artificial intelligence (AI) platforms, such as Neuro IT Ops and Flowsource, is expected to drive growth as clients increasingly adopt AI-driven automation [4] Growth Opportunities - The rising demand for GenAI solutions in sectors like financial services, healthcare, and manufacturing is anticipated to provide growth opportunities, particularly in fraud detection, medical imaging, and predictive maintenance [5] - The NextGen initiative is expected to enhance operational efficiency in the upcoming quarter [5] Clientele Expansion and Partnerships - Cognizant's extensive partner network, including companies like Omron, Docusign, and NVIDIA, is likely to contribute to growth in Q1 [6] - Recent expansion of the partnership with Docusign aims to enhance customer support and digital transformation, which is expected to positively impact performance [7] - Collaboration with OMRON focuses on integrating IT and Operational Technology in manufacturing, while a new AI-powered dispute management solution was launched in partnership with ServiceNow [8] Challenges and Market Conditions - Despite the expanding clientele, macroeconomic challenges and cost optimization pressures are expected to negatively affect top-line growth [10] - The company faces headwinds from unfavorable foreign currency exchange rates, which may reduce revenue growth and impact financial metrics [11] - A slight margin decline is anticipated in Q1 2025 due to seasonality, affecting near-term profitability [11]

Core Viewpoint - Cognizant (CTSH) is well-positioned to continue its earnings-beat streak in the upcoming report, supported by a strong history of exceeding earnings estimates, particularly in the last two quarters [1][5]. Earnings Performance - For the last reported quarter, Cognizant achieved earnings of $1.21 per share, surpassing the Zacks Consensus Estimate of $1.12 per share, resulting in a surprise of 8.04% [2]. - In the previous quarter, the company was expected to report earnings of $1.14 per share but delivered $1.25 per share, yielding a surprise of 9.65% [2]. Earnings Estimates and Predictions - Estimates for Cognizant have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong potential for future earnings beats [5][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, suggesting that Cognizant may follow this trend [6]. Earnings ESP and Analyst Sentiment - Cognizant has an Earnings ESP of +0.02%, indicating that analysts are optimistic about its near-term earnings potential [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 suggests that another earnings beat may be imminent, with the next earnings report expected on April 30, 2025 [8].

Core Insights - Cognizant has expanded its partnership with Docusign to enhance customer support and drive digital transformation [1][2] - The collaboration aims to provide innovative intelligent agreement management (IAM) solutions that optimize customer service management and streamline agreement processes globally [2][3] Partnership Details - The multi-year agreement includes comprehensive customer support services for Docusign, covering eSignature, billing inquiries, and technical support [2][5] - Cognizant's expertise in AI and digital transformation will empower Docusign to advance its IAM platform and deliver more efficient solutions to customers [3] Focus Areas - The partnership will focus on real-time customer assistance to quickly address technical issues and inquiries, aiming to improve customer satisfaction [5] - Development of comprehensive training resources to help customers effectively deploy Docusign solutions and achieve business objectives [5] - Enhanced back-office support to improve service management and maintain seamless operations for customers [5] - Onboarding consultations to assist new customers with setup, launch, and management of Docusign solutions [5]

Core Insights - Belcan, LLC has been awarded Supplier of the Year by GE Aerospace, recognizing its excellence in safety, quality, delivery, innovation, and partnership among over 250 suppliers [1][2] - The award was presented at the GE Supplier Symposium Awards Dinner on March 5, 2025, marking the first symposium in over five years [2] - Belcan has maintained a partnership with GE Aerospace for over 55 years, built on trust and industry expertise [3] Company Overview - Belcan, a Cognizant company, provides design, software, manufacturing, supply chain, IT, and digital engineering solutions across various sectors including aerospace, defense, automotive, and industrial markets [4] - The company has a global presence with headquarters in Cincinnati, Ohio, and additional offices in the UK, Poland, Mexico, and India, allowing it to support GE Aerospace effectively [3][4] - Belcan focuses on delivering adaptable, integrated, and value-added solutions, earning customer trust for over 60 years [4]

Core Insights - Cognizant Technology Solutions (CTSH) is expanding its clientele through a partnership with Omron to integrate IT and OT in the manufacturing sector [1][2] - The partnership aims to enhance operational efficiency, sustainability, and productivity across various industries, including automotive and life sciences [2] - Cognizant's shares have decreased by 13.6% year-to-date, while the broader Zacks Computer & Technology sector has declined by 20.8% [3] Company Developments - Cognizant's expanding partner base includes notable companies such as NVIDIA, ServiceNow, and Amazon, which is expected to drive growth prospects in 2025 [4] - In Q4 2024, Cognizant secured 10 large deals, increasing from seven the previous year, totaling 29 large deals for the year [4] - The company launched an AI-powered dispute management solution in March, leveraging ServiceNow's technology for mid-market banks in North America [5] Technological Advancements - Cognizant, in collaboration with NVIDIA, is advancing AI technology across five key areas, including enterprise AI agents and digital twins for smart manufacturing [6] Financial Guidance - For Q1 2025, Cognizant expects revenues between $5 billion and $5.1 billion, indicating growth of 5.6-7.1% [7] - For the full year 2025, revenues are projected to be between $20.3 billion and $20.8 billion, reflecting an increase of 2.6-5.1% [7] - The adjusted operating margin for 2025 is anticipated to be 15.5-15.7%, with adjusted earnings expected between $4.90 and $5.06 per share [8] Earnings Estimates - The Zacks Consensus Estimate for Q1 2025 revenues is $5.07 billion, indicating year-over-year growth of 6.47% [9] - The consensus estimate for 2025 revenues is $20.56 billion, reflecting a year-over-year growth of 4.16% [10]

Core Insights - OMRON Corporation and Cognizant have formed a strategic partnership to integrate IT and OT in the manufacturing sector, with Cognizant serving as the engineering partner for OMRON's Industrial Automation Business products [1][2] Company Overview - OMRON is recognized for its advanced automation technology and offers a wide range of OT products, including sensors, controllers, servo motors, safety equipment, and robots [2][6] - Cognizant specializes in IT-OT convergence and provides capabilities in cloud, AI, IoT, and digital twin technologies [2][6] Partnership Objectives - The collaboration aims to deliver a comprehensive solution for digital transformation, enhancing operational excellence through consultancy, implementation, operation, and maintenance [3][4] - Target industries for this partnership include Automotive, Semiconductor, Electronics, Industrial Manufacturing, Life Sciences, and Consumer Goods [3] Business Model and Benefits - The partnership seeks to create a unique business model that addresses on-site and management challenges through continuous IT-OT analysis and improvements [4][5] - The integration is expected to promote sustainable manufacturing by improving productivity, workforce efficiency, and reducing greenhouse gas emissions [4][8] Data Utilization - OMRON's extensive product lineup, which includes over 200,000 SKUs, will provide high-quality field data for Cognizant's Asset Performance Excellence platform and OnePlant™ maturity assessment tool [5] - This data will facilitate the analysis of IT-related issues and prioritize management improvements, ultimately enhancing decision-making processes [5] Future Vision - The partnership aims to advance manufacturing by leveraging emerging technologies and integrating IT and OT systems to create a connected, intelligent, autonomous, sustainable, and resilient manufacturing environment [6][8]

Core Insights - Cognizant Technology Solutions (CTSH) is experiencing growth due to an expanding clientele and a strong partner base, with a favorable mix of business renewals and new opportunities driving performance in 2025 [1][9] - The company secured 10 large deals in Q4 2024, increasing from seven the previous year, totaling 29 large deals for the year [1] AI Advancements - CTSH has made significant progress in AI capabilities, introducing innovations such as the Neuro AI Multi-Agent accelerator and Neuro Cybersecurity, which enhance its AI offerings [2] - The collaboration with NVIDIA (NVDA) is pivotal in advancing AI-driven innovation, focusing on enterprise AI agents and industry-specific Large Language Models (LLMs) [3][4] Strategic Partnerships - Cognizant's expanding partner base includes notable companies like NVDA, Boehringer Ingelheim, CrowdStrike (CRWD), Zscaler (ZS), ServiceNow, IBM, Palo Alto Networks, and Amazon, which is expected to enhance its prospects in 2025 [5] - The partnership with CrowdStrike aims to transform enterprise security through AI-powered cybersecurity services [6] - An expanded partnership with Zscaler focuses on simplifying and transforming security posture using an AI-enabled zero-trust cloud security platform [7] - A new partnership with Boehringer Ingelheim aims to streamline clinical operations through a technology platform powered by the Veeva Development Cloud [8] Financial Guidance - For Q1 2025, CTSH expects revenues between $5 billion and $5.1 billion, indicating growth of 5.6-7.1% [9] - The revenue forecast for 2025 is between $20.3 billion and $20.8 billion, implying an increase of 2.6-5.1% [9] - The adjusted operating margin for 2025 is projected to be 15.5-15.7%, reflecting an increase of 20-40 basis points [10] - Adjusted earnings per share for 2025 are expected to be between $4.90 and $5.06 [11]