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