Cognizant Records Strongest Sequential Organic Growth Since 2022

Revenue of $5.42 billion increased 7.4% year-over-year or 6.5% in constant currency

Ravi Kumar S, CEO, Cognizant

FinTech BizNews Service

Mumbai, October 29, 2025: Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its third quarter 2025 financial results.

Third Quarter 2025 Results

• Revenue of $5.42 billion increased 7.4% year-over-year or 6.5% in constant currency1, above the high end of our guidance range, and 3.2% sequentially or 2.8% in constant currency, driven by North America and organic growth across all segments
• Operating margin of 16.0% increased 140 basis points year-over-year; Adjusted Operating Margin1 of 16.0% increased 70 basis points year-over-year
• GAAP EPS of $0.56 declined by $0.61 year-over-year and includes the $0.80 impact of a one-time, non-cash income tax expense
• Adjusted EPS1 of $1.39 increased 11% year-over-year
• Trailing 12-month bookings of $27.5 billion increased 5% year-over-year

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• $ in millions, except per share data	Q3 2025		Q3 2024		YTD Q3 2025		YTD Q3 2024
  Revenue	$5,415		$5,044		$15,775		$14,654
  Y/Y Change	7.4 %		3.0 %		7.6 %		0.4 %
  Y/Y Change CC1	6.5 %		2.7 %		7.3 %		0.3 %
  GAAP Operating Margin	16.0 %		14.6 %		16.1 %		14.6 %
  Adjusted Operating Margin1	16.0 %		15.3 %		15.7 %		15.2 %
  GAAP Diluted EPS	$0.56		$1.17		$3.22		$3.41
  Adjusted Diluted EPS1	$1.39		$1.25		$3.93		$3.55

  
  

  "Third quarter revenue grew 6.5% year-over-year and 2.8% sequentially in constant currency, representing our fifth consecutive quarter of year-over-year organic revenue growth and our strongest sequential organic growth since 2022," said Ravi Kumar S, CEO. "We maintained our large deal momentum, signing six large deals in the quarter, bringing our year-to-date total to 16 with 40% growth in large deal TCV year-to-date compared to the same period last year. I am proud of our year-to-date top-tier revenue growth, which is a testament to our differentiated capabilities at the intersection of technology and industry. We believe our three vector AI builder strategy is gaining traction and we expect our early investments in AI-led platforms and IP on the edge will help power growth in the years ahead." Our recently completed acquisitions contributed approximately 250 basis points to year-over-year revenue growth and approximately 350 basis points to the year-to-date revenue growth for Q3 2025 and YTD Q3 2025 periods, respectively. GAAP Diluted EPS includes a one-time non-cash income tax charge that negatively impacted Q3 2025 by $0.80 and YTD Q3 2025 by $0.79.

  "Third quarter revenue was well above our guidance range with broad-based growth across segments and geographies, including noteworthy performance in North America. Strong execution and cost discipline drove 70 basis points of year-over-year Adjusted Operating margin expansion, robust cash flow and year-to-date Adjusted EPS growth of 11%," said Jatin Dalal, CFO. 

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• "We have increased our full-year revenue guidance to 6.0% to 6.3% year-over-year constant currency growth, above our prior range and deployed $1 billion through share repurchases through Q3, underscoring our confidence in our growth strategy."  
  Bookings
  On a trailing-twelve-month basis, bookings increased 5% year-over-year to $27.5 billion, which represented a book-to-bill of approximately 1.3x. Bookings in the third quarter declined 5% year-over-year. Third quarter bookings included six large deals, which are deals with total contract value of $100 million or greater.
  Employee Metrics
  On a trailing-twelve months basis, Voluntary Attrition - Tech Services was 14.5% for the period ended September 30, 2025, as compared to 15.2% and 14.6% for the periods ended June 30, 2025 and September 30, 2024, respectively. Total headcount as of September 30, 2025 was 349,800, an increase of 6,000 from June 30, 2025 and 9,700 from September 30, 2024.
  Return of Capital to Shareholders
  The Company repurchased 6.3 million shares for $450 million during the third quarter under its share repurchase program. Year-to-date, the company has repurchased 13.1 million shares for $994 million under the program. As of September 30, 2025, there was $2.2 billion remaining under the share repurchase authorization. In October 2025, the Company declared a quarterly cash dividend of $0.31 per share for shareholders of record on November 18, 2025. This dividend will be payable on November 26, 2025.
  Fourth Quarter and Full-Year 2025 Guidance
  (all growth rates year-over-year)

  • Fourth quarter revenue is expected to be $5.27 - $5.33 billion, growth of 3.8% to 4.8%, or 2.5% to 3.5% in constant currency.
  • Full-year 2025 revenue is expected to be $21.05 to $21.10 billion, growth of 6.6% to 6.9%, or 6.0% to 6.3% in constant currency.
  • Full-year 2025 Adjusted Operating Margin3 is expected to be approximately 15.7%, or 40 basis points of expansion.
  • Full-year 2025 Adjusted Diluted EPS3 is expected to be in the range of $5.22 to $5.26.
• Year-to-date $1.5 billion returned to shareholders through share repurchases and dividends; on track to return $2.0 billion in 2025
• 2025 constant currency revenue growth guidance is increased to 6.0% to 6.3%, above our prior guidance range
• 2025 Adjusted Operating Margin guidance is now approximately 15.7%, expansion of 40 basis points year-over-year, the high end of prior guidance range
• Select Company, Client and Partnership Announcements 

  Cognizant is building a portfolio of capabilities combined with deep domain expertise to harness and advance an AI-led future. Cognizant's progress has been accelerated through client agreements, platform enhancements, and partnerships.  Recent announcements include:

  Client Announcements

  • Signed a multi-year agreement with Pearson to enhance Pearson's platforms with generative and agentic AI and help Pearson enhance its products including learner experiences and applications by implementing cloud-native solutions with a microservices architecture, leveraging Cognizant Flowsource™. Additionally, Cognizant aims to use its Agent Foundry and Neuro® SAN solutions to help enhance Pearson's critical business processes.
  • Announced an agreement with North Carolina Turnpike Authority (NCTA) to develop and implement a next-generation tolling back-office system. It aims to eliminate the need for traditional toll transponders, allowing drivers to pay tolls directly through automobile infotainment systems. Cognizant's IoT and API development capabilities are expected to be central to enabling a successful proof of concept (POC), laying the foundation for infrastructure-less tolling.
  • Announced a contract with AP Pension, one of Denmark's leading life and pension companies. Cognizant will deliver business process outsourcing (BPO) and Robotic Process Automation (RPA) services to AP Pension. By adding additional capacity and expertise, Cognizant will help AP Pension improve efficiency, free up internal resources for strategic tasks, and, at the same time, strengthen the overall customer experience.
  • Announced an agreement with SmartestEnergy, a supplier of energy solutions. As SmartestEnergy scales its operations internationally, Cognizant has been selected to deliver an end-to-end Managed Extended Detection & Response (MXDR) service, covering technology, people, and processes. Through ongoing monitoring and threat prevention, Cognizant aims to help SmartestEnergy minimize disruptions, protect sensitive data, and strengthen trust with clients and partners.

• Platform Enhancements and Partnerships

  • Partnering with Workfabric AI, the company building the context engine for enterprise AI. As part of this initiative, Cognizant will train and equip its context engineers with Workfabric AI's ContextFabric™ platform, which transforms the organizational DNA of enterprises — how their teams work, including their workflows, data, rules, and processes — into actionable context for AI agents.
  • Announced an engagement with Temenos, a global banking technology leader, to develop and market Temenos Country Model Bank in Australia. Temenos Country Model Bank is an extension of its core banking platform designed to accelerate go-live for financial institutions. As a preferred partner for Australia, Cognizant aims to accelerate banking innovation in Australia by integrating emerging technologies into Temenos' core banking operations.
  • Announced an agreement with Rubrik, a security and AI operations company, to provide Business Resilience-as-a-Service (BRaaS) for mutual customers. The new BRaaS offering combines Rubrik's cyber resilience platform with Cognizant's extensive domain and industry expertise, with the goal of delivering industrialized solutions designed to support client compliance objectives and enhance the business resilience lifecycle for clients.