Cognizant(US:CTSH)2025-10-29 10:32Financial Performance - Third quarter revenue reached $5.42 billion, a 7.4% year-over-year increase, and 6.5% in constant currency, exceeding guidance[5] - Year-to-date revenue totaled $15.78 billion, reflecting a 7.6% increase compared to the same period last year[3] - Revenues for Q3 2025 were $5,415 million, a 7.4% increase from $5,044 million in Q3 2024[27] - Adjusted diluted EPS for Q3 2025 was $1.39, an 11% increase year-over-year, while GAAP diluted EPS was $0.56, down $0.61 year-over-year due to a one-time tax charge[5] - Adjusted diluted earnings per share for Q3 2025 was $1.39, compared to $1.25 in Q3 2024, marking an increase of 11.2%[31] - Operating income for Q3 2025 was $866 million, up from $738 million in Q3 2024, representing a 17.4% increase[27] - Net income for Q3 2025 was $274 million, a decrease of 53% compared to $582 million in Q3 2024[40] - Net income for the nine months ended September 30, 2025, was $1,582 million, compared to $1,694 million for the same period in 2024, reflecting a decrease of 6.6%[27] - Adjusted net income for the nine months ended September 30, 2025, was $1,931 million, compared to $1,762 million for the same period in 2024, reflecting a 9.6% growth[31] Revenue Guidance and Expectations - Full-year 2025 revenue guidance was raised to a growth range of 6.0% to 6.3% in constant currency[6] - The company expects fourth quarter revenue to be between $5.27 billion and $5.33 billion, representing a growth of 3.8% to 4.8%[11] Contracts and Bookings - The company signed six large deals in Q3 2025, contributing to a 40% growth in total contract value (TCV) year-to-date[3] - The trailing twelve-month bookings increased by 5% year-over-year to $27.5 billion, with a book-to-bill ratio of approximately 1.3x[7] - The company reported a book-to-bill ratio that indicates strong future revenue potential, although specific figures were not disclosed[24] Shareholder Returns - The company returned $1.5 billion to shareholders year-to-date through share repurchases and dividends, with a target of $2.0 billion for the full year[5] - The company repurchased 6.3 million shares in Q3 2025, compared to 3.1 million shares in Q3 2024[42] - The company had a remaining authorized balance for stock repurchases of $2,243 million as of September 30, 2025[42] Assets and Liabilities - Total current assets increased to $8,094 million as of September 30, 2025, compared to $7,504 million at the end of 2024, marking a 7.9% growth[29] - Total liabilities decreased to $5,237 million as of September 30, 2025, down from $5,558 million at the end of 2024, a reduction of 5.8%[29] - Cash and cash equivalents rose to $2,341 million as of September 30, 2025, compared to $2,231 million at the end of 2024, an increase of 4.9%[29] - Cash and unrestricted cash equivalents as of September 30, 2025, totaled $2,341 million, an increase from $2,231 million at the end of 2024[35] - Net cash for the company as of September 30, 2025, was $1,770 million, up from $1,335 million at the end of 2024[35] Operational Highlights - The company’s total headcount as of September 30, 2025, was 349,800, an increase of 6,000 from the previous quarter[8] - The Health Sciences segment generated $1,604 million in revenue for Q3 2025, accounting for 29.6% of total revenues, with a year-over-year growth of 5.9%[37] - North America contributed $4,028 million to total revenues in Q3 2025, representing 74.4% of total revenues, with a growth rate of 7.8%[37] Tax and Non-Cash Adjustments - The company recorded a one-time non-cash income tax expense of $390 million related to the enactment of the One Big Beautiful Bill Act (OBBBA) in July 2025[32] - Total adjustments for non-cash income and expenses were $600 million in Q3 2025, compared to $92 million in Q3 2024[40] Strategic Focus - The company is focusing on generative AI technologies to enhance its competitive position and client services[19] - Cognizant is actively managing its capital return strategy to shareholders, with anticipated amounts to be disclosed in future reports[19]