The earnings call presented a positive outlook with strong revenue and bookings growth, improved operating margins, and significant progress in AI-driven innovation and productivity. However, there are some challenges related to the demand environment and potential headwinds in health sciences. Despite these challenges, the company maintains a strong strategic focus and operational discipline.

Company Guidance -

Q3 2025

During the Cognizant Technology Solutions second quarter 2025 earnings call, the company provided a robust guidance, highlighting several key metrics. Revenue for the quarter grew 7.2% year-over-year in constant currency, reaching $5.2 billion. The quarter marked the fourth consecutive quarter of organic growth, led by Financial Services and Health Sciences, with bookings increasing by 18% year-over-year, translating to a trailing 12-month growth of 6%. The company secured six large deals with a total contract value (TCV) of $100 million or more, including two mega deals valued at around $1 billion each. This resulted in the TCV of large deals more than doubling year-over-year. Adjusted operating margin improved by 40 basis points to 15.6%, aligning with the company's goal of achieving a 20 to 40 basis point margin expansion for 2025. Headcount grew by approximately 2% sequentially, and the trailing 12-month voluntary attrition rate for tech services declined by 60 basis points to 15.2%. In terms of strategic initiatives, Cognizant highlighted its focus on AI, noting that 30% of its code was AI-generated during the quarter, up from 20% the previous quarter. The company is also expanding its talent base and investing in emerging technology hubs, while continuing to focus on AI-led productivity and innovation opportunities. Looking ahead, Cognizant expects full-year 2025 revenue growth of 4% to 6% in constant currency and aims for adjusted EPS growth of 7% to 10% year-over-year.

Strong Revenue Growth

Second quarter revenue grew 7.2% year-over-year in constant currency to $5.2 billion, marking the fourth consecutive quarter of year-over-year organic growth.

Significant Bookings Increase

Q2 bookings grew 18% year-over-year, with a trailing 12 months growth of 6%. The company landed 6 large deals with TCV of $100 million or greater, including 2 mega deals valued around $1 billion each.

Adjusted Operating Margin Improvement

Adjusted operating margin improved by 40 basis points year-over-year to 15.6%, on track to achieve the 20 to 40 basis points margin expansion goal for 2025.

AI-Driven Innovation and Productivity

AI projects have shown significant uptake, with more than 2,500 early GenAI client engagements compared to 1,400 in Q1. Nearly 30% of code was AI-generated in Q2, significantly improving developer productivity.

Talent and Engagement Initiatives

Employee engagement scores remained well above industry benchmarks for the third year in a row, with ongoing investments in AI and emerging technology hubs.

Record Capital Return to Shareholders

Cognizant returned $521 million to shareholders in Q2 and plans to return $2 billion in total for the full year, an increase from the previously planned $1.7 billion.

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
Oct 29, 2025	2025 (Q3)	1.30 / -	1.25	―	―	―
Jul 30, 2025	2025 (Q2)	1.26 / 1.31	1.17	11.97% (+0.14)
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)

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

CTSH Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 30, 2025	$73.53	$71.76	-2.41%
Apr 30, 2025	$73.29	$74.94	+2.25%
Feb 05, 2025	$83.00	$86.46	+4.17%
Oct 30, 2024	$73.52	$73.76	+0.33%

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.