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Jun 30, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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