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Sep 30
Cognizant Q3 2025 Earnings Report
Cognizant delivered strong Q3 2025 results, with revenue growth above guidance and expanded operating margins.
Key Takeaways
Cognizant reported solid revenue growth of 7.4% YoY in Q3 2025, driven by strong performance in North America and across all business segments. Operating margins improved, and adjusted EPS rose 11% YoY. The company also increased its full-year revenue and margin guidance.
Revenue of $5.42B grew 7.4% YoY, above the high end of guidance
GAAP and Adjusted Operating Margins both at 16.0%
Adjusted EPS rose to $1.39, up 11% YoY
Trailing 12-month bookings reached $27.5B, with a book-to-bill ratio of 1.3x
Cognizant
Cognizant
Cognizant Revenue by Segment
Cognizant Revenue by Geographic Location
Revenue by Segment
Health Sciences Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comProducts & Resources Revenue
CapyFin.comCMT 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 raised full-year 2025 guidance for both revenue growth and adjusted operating margin, reflecting confidence in continued momentum.
Positive Outlook
- Full-year 2025 revenue guidance raised to $21.05–$21.10B
- Constant currency revenue growth expected between 6.0% and 6.3%
- Full-year adjusted operating margin projected at ~15.7%
- Full-year adjusted EPS expected to be $5.22–$5.26
- Strong deal pipeline with 16 large deals signed YTD
Challenges Ahead
- GAAP EPS impacted by one-time $390M income tax expense
- Bookings declined 5% YoY in the quarter
- Growth in Rest of World geography remained flat
- Continued impact of acquisition-related cost structures
- Adjusted EPS growth moderated sequentially