Financial Data and Key Metrics Changes - First quarter revenue grew by 8.2% year over year in constant currency to $5,100 million, driven by the Belcan acquisition and organic growth in Health Sciences and Financial Services [6][25] - Adjusted Operating Margin improved by 40 basis points year over year to 15.5%, on track to achieve full year guidance of 20 to 40 basis points of expansion [8][32] - Adjusted EPS grew 10% year over year, marking the sixth consecutive quarter of year over year growth [8][25] Business Line Data and Key Metrics Changes - Health Sciences revenue increased over 11% year over year in constant currency, with broad-based growth across payer, provider, and life sciences [7][28] - Financial Services segment grew 6.5% year over year in constant currency, with healthy discretionary spending as clients invested in cloud and data modernization [7][28] - Products and Resources segment growth was driven by Welch, but overall demand environment remained weak due to discretionary spending pressures [29] Market Data and Key Metrics Changes - North America revenue grew 10% year over year in constant currency, driven by Belcan and large deals [30] - Europe revenue increased by 3% year over year in constant currency, supported by life sciences and financial services clients [30] - The Rest of the World saw a 7% year over year increase in constant currency, driven by large deals in Communications, Media, and Technology [31] Company Strategy and Development Direction - The company is investing heavily in AI-powered software-led engineering, integrating expertise in embedded software and IoT with capabilities from recent acquisitions [10][21] - Strategic imperatives include amplifying talent, scaling innovation, and accelerating growth, with a focus on AI and embedded engineering [16][19] - The company aims to build a resilient and durable organization that can thrive in both slow and high-velocity markets [5][9] Management's Comments on Operating Environment and Future Outlook - The macro environment has changed sharply, leading to elevated uncertainty, but the company sees opportunities related to productivity and efficiency [9][26] - Management remains optimistic about the pipeline for large deals and believes the current environment presents opportunities for cost optimization and vendor consolidation [26][39] - The company expects revenue growth of 3.5% to 6% in constant currency for the full year 2025, with adjusted operating margin guidance of 15.5% to 15.7% [36][37] Other Important Information - The company has approximately 1,400 early Gen AI engagements, reflecting a strong focus on AI-led productivity [11][12] - The company plans to establish a 14-acre immersive learning center in Chennai, India, to train 100,000 individuals annually in advanced AI technologies [17][20] - The company returned $364 million of capital to shareholders through share repurchases and dividends during the quarter [35] Q&A Session Summary Question: Shift in bookings and pipeline quality - Management noted that productivity gains from leveraging AI are leading to new deals and opportunities for consolidation, particularly in financial services [42][44] Question: April slowdown in decision-making - Management indicated that while there is some caution in health and products and resources sectors, financial services remain strong, and the impact is seen as isolated [56][57] Question: Organic growth and headcount changes - Management confirmed that organic growth has been driven by healthcare and financial services, with a significant improvement in utilization from 82% to 85% [64][90] Question: Confidence in cost takeout deals - Management expressed confidence that the current environment is conducive for closing cost takeout deals, despite some delays in mega deals [93]

© 2025 Cognizant Forward-looking statements This earnings supplement includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, competitive p ...

Revenue Performance - Revenue for Q1 2025 was $5,115 million, a 7.5% increase year-over-year, and 8.2% in constant currency[3] - Revenues for Q1 2025 were $5,115 million, a 7.4% increase from $4,760 million in Q1 2024[28] - Total revenues for the three months ended March 31, 2025, were $5,115 million, representing a year-over-year increase of 7.5%[39] - Full-year 2025 revenue is expected to be between $20.5 billion and $21.0 billion, representing growth of 3.9% to 6.4%[12] - Q2 2025 revenue guidance is set between $5.14 billion and $5.21 billion, indicating growth of 5.9% to 7.4%[12] Profitability Metrics - GAAP operating margin improved to 16.7%, up 210 basis points year-over-year, while adjusted operating margin increased to 15.5%, up 40 basis points[6] - GAAP diluted EPS rose to $1.34, a 22% increase year-over-year, and adjusted diluted EPS increased to $1.23, a 10% rise[6] - Adjusted Operating Margin for Q1 2025 was 15.5%, up from 15.1% in Q1 2024[32] - Adjusted Diluted Earnings Per Share (EPS) for Q1 2025 was $1.23, compared to $1.12 in Q1 2024, representing a 9.8% increase[32] - The company anticipates full-year 2025 Adjusted Diluted EPS guidance of $4.98 to $5.14[32] Shareholder Returns - The company returned $364 million to shareholders through share repurchases and dividends, with a planned return of $1.7 billion for 2025[6] - The company repurchased 2.3 million shares under its stock repurchase program during the quarter, with a remaining authorized balance of $3,047 million[44] Bookings and Growth Indicators - Trailing 12-month bookings reached $26.7 billion, reflecting a 3% year-over-year increase, with a book-to-bill ratio of approximately 1.3x[8] - The book-to-bill ratio is a key indicator of potential future revenues, with large deals defined as those with a total contract value of $100 million or greater[25] Segment Performance - The Health Sciences segment generated $1,571 million in revenue, a 10.9% increase year-over-year, contributing 30.7% to total revenues[39] - North America accounted for $3,854 million, or 75.3% of total revenues, with a year-over-year growth of 9.5%[39] - The Products and Resources segment saw a revenue increase of 12.8% year-over-year, aided by recent acquisitions contributing approximately 400 basis points to overall revenue growth[40] Financial Position - Net income for Q1 2025 was $663 million, compared to $546 million in Q1 2024, reflecting a 21.4% year-over-year growth[28] - Total current assets as of March 31, 2025, were $7,545 million, slightly up from $7,504 million at the end of 2024[30] - Total liabilities decreased to $5,068 million as of March 31, 2025, from $5,558 million at the end of 2024[30] - Cash and cash equivalents were $1,980 million as of March 31, 2025, down from $2,231 million at the end of 2024[30] - Long-term debt decreased from $875 million at December 31, 2024, to $567 million as of March 31, 2025[37] Cash Flow - Net cash provided by operating activities was $400 million, compared to $95 million in the same period last year[42] - Free cash flow for the three months ended March 31, 2025, was $393 million, significantly up from $16 million in the prior year[46] - The company experienced a net cash used in investing activities of $7 million, compared to $238 million in the prior year[42] Strategic Initiatives - Cognizant's recent acquisitions contributed approximately 400 basis points to year-over-year revenue growth[3] - The company plans to establish a Cognizant Immersive Learning Center in Chennai, India, aimed at training 100,000 individuals annually[16] - Cognizant has entered into several strategic partnerships, including with Boehringer Ingelheim and Citizens Financial Group, to enhance technology capabilities and operational efficiencies[13]

Revenue of $5.1 billion increased 7.5% year-over-year or 8.2% in constant currency1, above the high end of our guidance range Operating margin of 16.7% increased 210 basis points year-over-year; Adjusted Operating Margin1 of 15.5% increased 40 basis points year-over-year GAAP EPS of $1.34 increased 22% year-over-year; Adjusted EPS of $1.23 increased 10% year-over-year Trailing 12-month bookings of $26.7 billion increased 3% year-over-year Returned $364 million to shareholders through share repurchases and ...

The upcoming report from Cognizant (CTSH) is expected to reveal quarterly earnings of $1.19 per share, indicating an increase of 6.3% compared to the year-ago period. Analysts forecast revenues of $5.07 billion, representing an increase of 6.5% year over year.The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a ...

Cognizant Technology Solutions (CTSH) is scheduled to report its first-quarter 2025 results on Wednesday.The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.19 per share, which has remained unchanged in the past 30 days. This indicates an increase of 6.25% from the figure reported in the year-ago quarter. Cognizant expects first-quarter 2025 revenues between $5 billion and $5.1 billion, increasing 5.6%-7.1% and 6.5%-8% on a cc basis. The Zacks Consensus Estimate for first-quarter re ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Cognizant (CTSH) , which belongs to the Zacks Computers - IT Services industry.This information technology consulting and outsourcing firm has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.84%.For the last reported quarter, Cogniza ...

Core Insights - Cognizant has expanded its partnership with Docusign to enhance customer support and drive digital transformation [1][2] - The collaboration aims to provide innovative intelligent agreement management (IAM) solutions that optimize customer service management and streamline agreement processes globally [2][3] Partnership Details - The multi-year agreement includes comprehensive customer support services for Docusign, covering eSignature, billing inquiries, and technical support [2][5] - Cognizant's expertise in AI and digital transformation will empower Docusign to advance its IAM platform and deliver more efficient solutions to customers [3] Focus Areas - The partnership will focus on real-time customer assistance to quickly address technical issues and inquiries, aiming to improve customer satisfaction [5] - Development of comprehensive training resources to help customers effectively deploy Docusign solutions and achieve business objectives [5] - Enhanced back-office support to improve service management and maintain seamless operations for customers [5] - Onboarding consultations to assist new customers with setup, launch, and management of Docusign solutions [5]

Core Insights - Belcan, LLC has been awarded Supplier of the Year by GE Aerospace, recognizing its excellence in safety, quality, delivery, innovation, and partnership among over 250 suppliers [1][2] - The award was presented at the GE Supplier Symposium Awards Dinner on March 5, 2025, marking the first symposium in over five years [2] - Belcan has maintained a partnership with GE Aerospace for over 55 years, built on trust and industry expertise [3] Company Overview - Belcan, a Cognizant company, provides design, software, manufacturing, supply chain, IT, and digital engineering solutions across various sectors including aerospace, defense, automotive, and industrial markets [4] - The company has a global presence with headquarters in Cincinnati, Ohio, and additional offices in the UK, Poland, Mexico, and India, allowing it to support GE Aerospace effectively [3][4] - Belcan focuses on delivering adaptable, integrated, and value-added solutions, earning customer trust for over 60 years [4]

Cognizant Technology Solutions (CTSH) is expanding its clientele through its partnership with Omron (OMRNY) , which aims to integrate Information Technology (IT) and Operational Technology (OT) in the manufacturing industry. As the engineering partner for Omron’s Industrial Automation Business (IAB), Cognizant will combine its expertise in cloud AI, IOT, and digital twin technologies with Omron’s advanced OT solutions, including sensors, controllers, and robotics.The joint offering will also provide a compr ...