1. CTSH reported Q1 2025 revenue growth of 7.5% year-over-year. 2. GAAP operating margin improved to 16.7%, driven by strategic execution. 3. Shareholder returns expected at $1.7 billion through buybacks and dividends. 4. Booking metrics indicate potential challenges with a 7% decline year-over-year. 5. Acquisitions contributed significantly, adding 400 basis points to revenue growth.
CTSH's revenue and margin improvements reflect strong operational performance, enhancing market perception. This is consistent with historical trends where solid earnings led to positive price movements.
The article provides crucial updates on CTSH’s financial performance and shareholder value initiatives, making it highly relevant for investors.
The immediate market reaction is likely to reflect quarterly results rather than long-term strategic initiatives, as investors often respond quickly to earnings reports.
TEANECK, N.J., April 30, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its first quarter 2025 financial results.
"We started the year on a strong note, delivering revenue and adjusted operating margin ahead of our expectations, reflecting our steadfast focus on the execution of our strategy over the last several years," said Ravi Kumar S, Chief Executive Officer. "The breadth and depth of our portfolio, combined with our deep industry and domain expertise, position us well as a strategic partner for clients in an increasingly complex macroeconomic environment. Today, productivity, cost reduction and resiliency are especially important, and we believe our differentiated AI and platform capabilities are helping clients navigate the near-term uncertainty while embarking on longer-term AI-led transformation."
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Revenue | $5,115 million | $4,760 million |
| Y/Y Change | 7.5% | (1.1%) |
| GAAP Operating Margin | 16.7% | 14.6% |
| Adjusted Diluted EPS | $1.23 | $1.12 |
Our recently completed acquisitions contributed approximately 400 basis points to the 2025 year-over-year revenue growth.
In the first quarter of 2025, our GAAP operating margin was positively impacted by 120 basis points, or $62 million, from the gain on the sale of an office complex in India.
"Our first quarter performance reflects strong operational rigor in a period of elevated uncertainty. We delivered revenue above the high-end of our guidance and expanded adjusted operating margin by 40 basis points year-over-year," said Jatin Dalal, Chief Financial Officer.
The Company repurchased 2.3 million shares for $190 million during the first quarter under its share repurchase program. As of March 31, 2025, there was $3.0 billion remaining under the share repurchase authorization. In April 2025, the Company declared a quarterly cash dividend of $0.31 per share for shareholders of record on May 19, 2025.
Cognizant will host a conference call on April 30, 2025, at 5:00 p.m. (Eastern) to discuss the Company's first quarter 2025 results. The conference call will also be available live on the Investor Relations section of the Cognizant website at investors.cognizant.com.