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Mar 31
Cognizant Q1 2025 Earnings Report
Cognizant reported increased revenue and net income for the first quarter of 2025.
Key Takeaways
Cognizant exceeded revenue and margin expectations in Q1 2025, delivering strong EPS growth and maintaining solid operating discipline amidst macroeconomic uncertainty.
Revenue reached $5.115 billion, up 7.5% year-over-year.
Net income grew to $663 million, up from $546 million last year.
Adjusted EPS came in at $1.23, driven by strong operating margin expansion.
Bookings for the trailing twelve months hit $26.7 billion despite a 7% quarterly decline.
Cognizant
Cognizant
Cognizant Revenue by Segment
Cognizant Revenue by Geographic Location
Revenue by Segment
Health Sciences Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comProducts and Resources Revenue
CapyFin.comCommunications, Media and Technology Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.comContinental Europe Revenue
CapyFin.comEurope - Total Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Cognizant maintained its full-year 2025 revenue and margin guidance, projecting stable growth and profitability through strategic investments and cost control.
Positive Outlook
- Full-year 2025 revenue guidance unchanged at $20.5B to $21.0B.
- Adjusted Operating Margin guidance reaffirmed at 15.5% to 15.7%.
- Expected FY25 Adjusted EPS range of $4.98 to $5.14.
- Second quarter revenue expected between $5.14B and $5.21B.
- Strength in AI capabilities and strategic partnerships to drive growth.
Challenges Ahead
- Q1 bookings declined 7% year-over-year.
- Macroeconomic uncertainty continues to affect client spending patterns.
- CMT segment posted a revenue decline year-over-year.
- Attrition remains elevated versus historic lows.
- Cash and equivalents declined quarter-over-quarter by $251M.
Revenue & Expenses
Visualization of income flow from segment revenue to net income