Cognizant Technology Solutions reported strong revenue growth and positive performance in key segments like Health Sciences and Financial Services. The company is benefiting from strategic investments in AI and technology, as well as strong bookings and a healthy pipeline. However, there is some concern about the slowdown in client decision-making and discretionary spending, particularly in April. Despite these challenges, the company's overall outlook remains positive.

Company Guidance

During the Cognizant Technology Solutions Q1 2025 earnings call, the company provided optimistic guidance based on several key metrics. Revenue for the first quarter grew by 8.2% year-over-year in constant currency to $5.1 billion, driven significantly by the Belcan acquisition and organic growth in Health Sciences and Financial Services. Health Sciences saw an impressive 11% year-over-year increase, while Financial Services grew by 6.5%. The adjusted operating margin improved by 40 basis points to 15.5%, and adjusted EPS grew by 10% year-over-year. The company reported a healthy book-to-bill ratio of 1.3x on a trailing 12-month basis, indicating a robust backlog. Additionally, Cognizant highlighted its focus on AI-led productivity, with AI-written code comprising over 20% of their output, and noted that they are currently engaged in approximately 1,400 early GenAI projects. For the full year 2025, the company expects revenue growth of 3.5% to 6% in constant currency, despite acknowledging macroeconomic uncertainties that have impacted client decision-making and discretionary spending.

Strong Revenue Growth

First quarter revenue grew by 8.2% year-over-year in constant currency to $5.1 billion, driven by the Belcan acquisition and organic growth in Health Sciences and Financial Services.

Health Sciences and Financial Services Performance

Health Sciences led revenue growth with over 11% increase year-over-year in constant currency. Financial Services segment grew 6.5% year-over-year in constant currency.

Adjusted Operating Margin Improvement

Adjusted operating margin of 15.5% improved by 40 basis points year-over-year.

Earnings Per Share Growth

Adjusted EPS grew 10% year-over-year, marking the sixth consecutive quarter of year-over-year growth.

AI and Technology Investments

The company is heavily investing in AI-powered software, with 1,400 early GenAI engagements and numerous partnerships with companies like NVIDIA to accelerate AI adoption.

Strong Bookings and Pipeline

On a trailing 12-month basis, bookings grew 3% year-over-year to $26.7 billion, representing a 1.3x book-to-bill ratio.

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Cognizant (CTSH) Earnings, Revenues Date & History

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CTSH Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 23, 2025	2025 (Q2)	1.25 / -	1.17	―	―	―
Apr 30, 2025	2025 (Q1)	1.20 / 1.23	1.12	9.82% (+0.11)
Feb 05, 2025	2024 (Q4)	1.12 / 1.21	1.18	2.54% (+0.03)
Oct 30, 2024	2024 (Q3)	1.15 / 1.25	1.16	7.76% (+0.09)
Jul 31, 2024	2024 (Q2)	1.12 / 1.17	1.1	6.36% (+0.07)
May 01, 2024	2024 (Q1)	1.11 / 1.12	1.11	0.90% (+0.01)
Feb 06, 2024	2023 (Q4)	1.04 / 1.18	1.01	16.83% (+0.17)
Nov 01, 2023	2023 (Q3)	1.10 / 1.16	1.17	-0.85% (-0.01)
Aug 02, 2023	2023 (Q2)	0.99 / 1.10	1.14	-3.51% (-0.04)
May 03, 2023	2023 (Q1)	1.05 / 1.11	1.08	2.78% (+0.03)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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CTSH Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Apr 30, 2025	$73.57	$75.23	+2.26%
Feb 05, 2025	$83.31	$86.79	+4.18%
Oct 30, 2024	$73.81	$74.04	+0.31%
Jul 31, 2024	$74.83	$75.45	+0.83%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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