Loading...
•
Mar 31, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...