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Jun 30
Cognizant Q2 2025 Earnings Report
Cognizant reported strong second quarter 2025 results, exceeding revenue guidance and demonstrating continued growth in key financial metrics.
Key Takeaways
Cognizant delivered a robust second quarter in 2025, with revenue exceeding expectations and significant year-over-year increases in both GAAP and Adjusted EPS. The company also achieved record trailing 12-month bookings, driven by two mega deals, and increased its planned capital return to shareholders for the year.
Revenue of $5.25 billion increased 8.1% year-over-year, surpassing the high end of guidance.
GAAP EPS rose 15% to $1.31, and Adjusted EPS increased 12% to $1.31 year-over-year.
Record trailing 12-month bookings reached $27.8 billion, up 6% year-over-year, with Q2 bookings growing 18% due to two mega deals over $1 billion each.
The company returned $885 million to shareholders year-to-date through share repurchases and dividends, increasing its full-year 2025 target to $2.0 billion.
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 provided a narrowed constant currency revenue growth guidance for the full year 2025, while reaffirming its adjusted operating margin outlook and increasing its planned capital return to shareholders.
Positive Outlook
- Full-year 2025 revenue expected to be $20.7 - $21.1 billion, representing 4.7% to 6.7% growth.
- Full-year 2025 constant currency revenue growth narrowed to 4.0% to 6.0%.
- Full-year 2025 Adjusted Operating Margin expected to be 15.5% to 15.7%, indicating 20 to 40 basis points of expansion.
- Full-year 2025 Adjusted Diluted EPS expected to be in the range of $5.08 to $5.22.
- Planned return of approximately $2.0 billion to shareholders in 2025, an increase from $1.7 billion previously.
Challenges Ahead
- Guidance for Adjusted Operating Margin and Adjusted Diluted EPS cannot be fully reconciled to GAAP measures without unreasonable efforts.
- Anticipated one-time, non-cash tax expense of approximately $400 million in Q3 2025 due to the enactment of the One Big Beautiful Bill Act (OBBBA).
- The tax expense related to OBBBA is expected to impact full-year 2025 Adjusted Diluted EPS by approximately $0.82 per diluted share.
- The competitive and rapidly changing nature of the markets may impact future results.
- Risks related to the successful use of AI-based technologies and their impact on demand and terms for services.