1. CTSH revenue reached $5.25 billion, an 8.1% increase YoY. 2. Operating margin expanded to 15.6%, a 100 basis point increase YoY. 3. GAAP EPS climbed to $1.31, up 15% from last year. 4. Record bookings of $27.8 billion indicate strong demand and growth potential. 5. CTSH plans to return $2 billion to shareholders, enhancing shareholder value.
CTSH's solid revenue growth and margin expansion exceed expectations, reflecting strong performance. History shows such earnings strength often leads to stock price increases, as seen post-Q1 results in 2025.
The article covers significant financial results and forward-looking guidance, which are crucial for investor decisions. Revenue growth and planned capital returns are key drivers for investor sentiment.
Positive earnings tend to influence stock prices shortly after the announcement. Previous instances show similar trends where stocks reacted positively following robust quarterly results.
Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its second quarter 2025 financial results.
"Our second quarter revenue performance exceeded the high end of our guidance range, underscoring the effectiveness of our strategy to build a resilient and durable portfolio that positions us to win in the AI era," said Ravi Kumar S, Chief Executive Officer. "Our investments in talent, platforms and AI infrastructure drove our fourth-straight quarter of organic year-over-year revenue growth, another quarter of margin expansion and helped us accelerate bookings, including two $1 billion deals. In today's dynamic and competitive environment, we are differentiating ourselves by moving with agility and building IP at the edge, leveraging our interdisciplinary capabilities across domain, technology and operations to address new client growth priorities and deliver agentification at scale."
| Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | |
|---|---|---|---|---|
| Revenue | $5,245 | $4,850 | $10,360 | $9,610 |
| Y/Y Change | 8.1% | (0.7%) | 7.8% | (0.9%) |
| GAAP Operating Margin | 15.6% | 14.6% | 16.1% | 14.6% |
| GAAP Diluted EPS | $1.31 | $1.14 | $2.65 | $2.23 |
Our recently completed acquisitions contributed approximately 400 basis points to year-over-year revenue growth in each of the Q2 2025 and YTD Q2 2025 periods.
"In the first half of 2025, we delivered constant currency revenue growth of 7.7% and adjusted operating margin expansion of 40 basis points while funding investments for growth. This drove adjusted EPS growth of 11%," said Jatin Dalal, Chief Financial Officer. "Our increased revenue guidance midpoint and reaffirmed adjusted operating margin outlook reflect strong execution and momentum year-to-date. We now expect to return approximately $2.0 billion to shareholders this year, reinforcing our commitment to returning excess capital and confidence in our long-term strategy."
On a trailing-twelve-month basis, bookings increased 6% year-over-year to $27.8 billion, which represented a book-to-bill of approximately 1.4x. Bookings in the second quarter increased 18% year-over-year. Second quarter bookings included six large deals, which are deals with total contract value of $100 million or greater. Of these, two deals had total contract value of over $1 billion each.
The Company repurchased 4.5 million shares for $354 million during the second quarter under its share repurchase program. Year-to-date, the company has repurchased 6.8 million shares for $544 million. As of June 30, 2025, there was $2.7 billion remaining under the share repurchase authorization. In July 2025, the Company declared a quarterly cash dividend of $0.31 per share for shareholders of record on August 18, 2025. This dividend will be payable on August 26, 2025.
Cognizant will host a conference call on July 30, 2025, at 5:00 p.m. (Eastern) to discuss the Company's second quarter 2025 results. To listen to the conference call, please dial (877) 810-9510 (domestic) or +1 (201) 493-6778 (international) and provide the following conference passcode: "Cognizant Call."
The conference call will also be available live on the Investor Relations section of the Cognizant website. An earnings supplement will also be available on the Cognizant website at the time of the conference call. A replay will be available as well.