Cognizant Technology Solutions ( (CTSH) ) has released its Q3 earnings. Here is a breakdown of the information Cognizant Technology Solutions presented to its investors.
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Cognizant Technology Solutions is a leading professional services company that specializes in technology and consulting services, primarily operating in the IT sector with a focus on digital transformation and AI integration. In its third-quarter 2025 earnings report, Cognizant reported a revenue of $5.42 billion, marking a 7.4% increase year-over-year and surpassing its guidance range. The company’s operating margin improved to 16.0%, and adjusted EPS rose by 11% to $1.39, despite a GAAP EPS decline due to a one-time tax expense.
Key financial highlights include a 5% increase in trailing 12-month bookings to $27.5 billion and significant shareholder returns with $1.5 billion distributed through repurchases and dividends. The company also raised its full-year revenue growth guidance to 6.0%-6.3% in constant currency, reflecting strong performance and strategic acquisitions that contributed to revenue growth.
Cognizant’s strategic focus on AI and large deal momentum is evident, with six large deals signed in the quarter and a 40% year-to-date growth in large deal total contract value. The company continues to enhance its AI capabilities through partnerships and platform developments, aiming to drive future growth and innovation.
Looking ahead, Cognizant remains optimistic about its growth trajectory, with expectations of continued revenue growth and margin expansion. The management’s strategic investments in AI and digital transformation are anticipated to bolster the company’s competitive edge in the evolving technology landscape.