Cognizant Technology Solutions ( (CTSH) ) has released its Q1 earnings. Here is a breakdown of the information Cognizant Technology Solutions presented to its investors.
Cognizant Technology Solutions, a leading professional services company, specializes in IT services and consulting, with a strong focus on AI and platform capabilities to support client transformations across various industries. In its first quarter of 2025, Cognizant reported a revenue of $5.1 billion, marking a 7.5% increase year-over-year, surpassing its guidance expectations. The company also saw an improvement in its operating margin and earnings per share, reflecting its strategic focus on execution and cost efficiency.
Key financial highlights include a 16.7% GAAP operating margin, a 22% year-over-year increase in GAAP EPS to $1.34, and a 10% rise in adjusted EPS to $1.23. Cognizant’s bookings reached $26.7 billion over the trailing twelve months, with a book-to-bill ratio of 1.3x. The company returned $364 million to shareholders through share repurchases and dividends and plans to return $1.7 billion in 2025.
Cognizant’s strategic initiatives include expanding its AI capabilities and forming significant partnerships with companies like Boehringer Ingelheim, Citizens Financial Group, and Docusign. These collaborations aim to enhance operational efficiencies and drive digital transformations across various sectors. The company’s focus on AI and platform enhancements positions it as a strategic partner in navigating complex macroeconomic environments.
Looking ahead, Cognizant maintains its full-year 2025 guidance for constant currency revenue growth between 3.5% and 6.0%, with an adjusted operating margin expected to expand by 20 to 40 basis points. The company continues to emphasize its role as a strategic partner, leveraging its comprehensive portfolio and industry expertise to drive client success in a rapidly evolving market.