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Dec 31, 2025
Cognizant Q4 2025 Earnings Report
Cognizant reported strong fourth quarter and full-year 2025 results, exceeding revenue guidance and showing growth in operating margin and EPS.
Key Takeaways
Cognizant delivered a robust performance in Q4 2025, with revenue reaching $5.33 billion, a 4.9% year-over-year increase. The company also reported a GAAP diluted EPS of $1.34 and an Adjusted Diluted EPS of $1.35. Full-year results were also strong, with revenue of $21.11 billion and significant growth in operating margin and adjusted EPS.
Fourth quarter revenue increased by 4.9% year-over-year to $5.33 billion, or 3.8% in constant currency.
Full-year revenue grew 7.0% year-over-year to $21.11 billion, or 6.4% in constant currency.
Adjusted Operating Margin for the full year increased by 50 basis points year-over-year to 15.8%.
Trailing 12-month bookings increased 5% year-over-year to $28.4 billion, with 28 large deals signed in 2025.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cognizant anticipates continued growth in 2026, with revenue expected to be between $22.14 billion and $22.66 billion, and Adjusted Operating Margin projected to expand by 10 to 30 basis points.
Positive Outlook
- Full-year 2026 revenue is expected to grow 4.9% to 7.4% year-over-year, or 4.0% to 6.5% in constant currency.
- Full-year 2026 Adjusted Operating Margin is expected to be approximately 15.9% to 16.1%, representing 10 to 30 basis points of expansion.
- Full-year 2026 Adjusted Diluted EPS is expected to be in the range of $5.56 to $5.70, indicating 5% to 8% growth.
- The company expects to return $1.6 billion to shareholders in 2026 through share repurchases and dividends.
- First quarter 2026 revenue is expected to be $5.36 billion to $5.44 billion, with growth of 4.8% to 6.3%.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The company's ability to achieve its guidance is subject to various risks and uncertainties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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