Cognizant Technology Solutions Corporation's Stock Analysis

Cognizant Reports Q2 2025 Revenue and Earnings Growth

Cognizant Technology Solutions announced its financial results for the second quarter of 2025, reporting revenue of $5.25 billion, which reflects an 8.1% increase compared to the previous year. The operating margin improved to 15.6%, marking a 100 basis point rise year-over-year, while GAAP earnings per share (EPS) reached $1.31, a 15% increase from the same quarter last year. The company achieved record bookings of $27.8 billion over the trailing twelve months, with significant contributions from two large contracts valued over $1 billion each. Additionally, Cognizant plans to return approximately $2.0 billion to shareholders through share repurchases and dividends in 2025, up from a previous estimate of $1.7 billion.

For the third quarter of 2025, Cognizant anticipates revenue between $5.27 billion and $5.35 billion, representing a growth rate of 4.6% to 6.1%. Full-year revenue guidance has been narrowed to a range of $20.7 billion to $21.1 billion, with expected adjusted operating margins between 15.5% and 15.7%. The company continues to emphasize its commitment to AI and digital transformation, with recent partnerships and enhancements in technology aimed at driving further growth and operational efficiency.

Jul 30, 2025 16:03:44

Cognizant Promotes Alina Kerdman to Senior VP Position

Cognizant Technology Solutions Corporation has announced the promotion of Alina Kerdman to the position of Controller and Chief Accounting Officer, effective July 1, 2025. This role is classified as an executive officer position and is subject to board approval. Kerdman will receive an annual base salary of $400,000 and will be eligible for a target annual cash incentive of $200,000, contingent on her continued employment and performance metrics set by the Compensation Committee.

In addition to her base salary and cash incentives, Kerdman will receive targeted annual compensation in the form of restricted stock units (RSUs) and performance-based stock units (PSUs), each valued at $300,000, subject to board approval and her continued employment. The RSUs will vest quarterly over three years, while the PSUs will be granted based on performance metrics determined by the Compensation Committee. Kerdman will also be entitled to 25 days of annual leave and participate in benefit plans available to executives.

May 28, 2025 16:51:54

Cognizant Reports Q1 2025 Revenue Growth and Shareholder Returns

Cognizant announced its financial results for the first quarter of 2025, reporting revenue of $5.1 billion, a 7.5% increase year-over-year, which exceeded its guidance. The company's operating margin improved to 16.7%, up 210 basis points from the previous year, and GAAP EPS rose to $1.34, marking a 22% increase year-over-year. The company returned $364 million to shareholders through share repurchases and dividends in the quarter, with a planned total return of $1.7 billion for 2025.

The company maintained its revenue growth guidance for 2025 at 3.5% to 6.0% and adjusted operating margin guidance at 15.5% to 15.7%. Trailing 12-month bookings reached $26.7 billion, a 3% increase year-over-year, though bookings in the first quarter declined 7% from the previous year. Cognizant also highlighted recent client agreements and partnerships aimed at enhancing its AI capabilities and operational efficiencies.

Apr 30, 2025 16:02:39

Cognizant Increases Share Repurchase Authorization by $2 Billion

Cognizant has announced a $2 billion increase to its share repurchase authorization and plans to repurchase $1.1 billion of shares in 2025, which is an increase of $500 million over previous expectations. The company is hosting an Investor Day to discuss its long-term growth strategy, highlighting its progress in AI-driven technology transformation and plans to enhance shareholder value through strategic investments and operational improvements.

On the negative side, Cognizant faces challenges related to the competitive and rapidly changing nature of the IT services market. The company acknowledges potential risks that could impact its growth strategy, including economic conditions, talent acquisition, and the effectiveness of its AI-based technologies. These factors may affect its ability to achieve the anticipated benefits from its initiatives and could lead to results that differ from expectations.

Mar 25, 2025 08:02:00

Cognizant Reports $5.1 Billion Revenue for Q4 2024

Cognizant announced a fourth-quarter revenue of $5.1 billion, marking a 6.8% increase compared to the same period last year. The company reported a full-year revenue of $19.7 billion, which is a 2.0% year-over-year growth. Additionally, Cognizant achieved an operating margin of 14.7%, up 80 basis points from the previous year, and returned $1.2 billion to shareholders through share repurchases and dividends. The company also highlighted a significant growth in bookings, with a trailing twelve-month total of $27.1 billion, reflecting an 11% year-over-year increase in the fourth quarter alone.

However, the company faced challenges with voluntary attrition in its Tech Services sector, which rose to 15.9% from 13.8% in the previous year. Cognizant's GAAP diluted earnings per share slightly decreased to $1.10 from $1.11 in Q4 2023. While the company plans to sustain its strategic investments, the guidance for 2025 revenue growth is projected between 3.5% and 6.0%, indicating a cautious outlook amid ongoing market conditions.

Feb 05, 2025 16:05:30

Cognizant Announces Third Quarter 2024 Financial Results

Cognizant reported a revenue of $5.0 billion for the third quarter of 2024, marking a 3.0% increase year-over-year, which is at the high end of their guidance. The company also achieved an operating margin of 14.6%, flat sequentially but up 60 basis points from the previous year. Notable growth was seen in the Health Sciences sector, which rose by 7.8%, and Financial Services returned to growth with a 0.7% increase. The company signed six large deals worth over $100 million each during the quarter, contributing to a total of nineteen such deals year-to-date, exceeding the total for all of 2023. Additionally, Cognizant completed the acquisition of Belcan, enhancing its engineering capabilities in various sectors including aerospace and defense.

On the downside, while Cognizant's revenue grew, bookings were flat year-over-year, with a trailing twelve-month decline of 2% to $26.2 billion. The adjusted operating margin decreased by 20 basis points compared to the previous year, although it did increase sequentially. The company also reported a total headcount decrease of 6,500 from the previous year, despite a slight increase from the prior quarter. Employee attrition in Tech Services improved but remained relatively high at 14.6%. These factors may raise concerns about future growth and operational stability.

Oct 30, 2024 16:04:19

Cognizant Reports Strong Q2 2024 Financial Results

Cognizant's Q2 2024 revenue reached $4.9 billion, exceeding expectations, with a notable increase in operating margin to 14.6%. The company also reported strong bookings and improved growth outlook for the year. However, year-over-year revenue showed a slight decline, indicating challenges ahead. Overall, the results reflect effective strategic execution and a positive outlook for future performance.

Jul 31, 2024 16:03:48

Cognizant Acquires Belcan for $1.3 Billion, Expanding Aerospace Capabilities

Cognizant's acquisition of Belcan for $1.3 billion aims to strengthen engineering capabilities, particularly in the aerospace & defense market. The deal is expected to bring in over $100 million in revenue synergies within three years, enhancing growth opportunities and potentially increasing shareholder value. Belcan's CEO will continue to lead the company under Cognizant, focusing on leveraging combined expertise and clientele. The transaction is set to close by September 30, 2024, pending regulatory approvals.

Jun 10, 2024 07:05:23

Cognizant Q1 2024 Results Overview

Cognizant's Q1 2024 revenue slightly declined but exceeded guidance. Operating margin remained steady, with an increase in adjusted margin. The company secured significant deals and returned $284 million to shareholders. Revenue guidance for 2024 is unchanged, with a focus on efficiency and growth. The acquisition of Thirdera is seen as a positive step for future expansion. Cognizant aims to balance investments for growth and cost discipline.

May 01, 2024 16:03:38

Cognizant Reports 2023 Financial Results, Provides 2024 Guidance

Cognizant reported a slight decline in full-year revenue but exceeded operating margin guidance. The company saw a 9% increase in bookings and returned $1.7 billion to shareholders. The 2024 guidance includes a revenue growth range of (2%) to 2% and an expansion of 20 to 40 basis points in Adjusted Operating Margin. CEO Ravi Kumar S expressed confidence in the company's strengthened position and its ability to help clients navigate economic pressures.

Feb 06, 2024 16:08:51