Cognizant Technology Solutions Corp - Class A

Cognizant posted a clean beat across the board in Q2 2025, with revenue of $5.25 billion growing 8.1% year-over-year and adjusted diluted EPS of $1.31 clearing the $1.26 consensus estimate by roughly 4%, as the IT services giant continued to benefit from its acquisition of engineering firm Belcan, which contributed approximately 400 basis points to headline growth. Bookings were the quarter's standout signal, with trailing twelve-month bookings reaching $27.80 billion on a 1.4x book-to-bill ratio, underpinned by two new contracts each exceeding $1.00 billion in total contract value. Adjusted operating margin held at 15.6%, expanding 40 basis points year-over-year, while the company accelerated share repurchases to $368.00 million in the quarter and lifted its full-year shareholder return target to $2.00 billion from $1.70 billion. Looking ahead, management guided Q3 revenue to $5.27 to $5.35 billion, though a one-time non-cash tax charge of approximately $400.00 million tied to the One Big Beautiful Bill Act is expected to weigh heavily on reported GAAP EPS next quarter; the company also faces a pending $380 million lawsuit from Clorox tied to a 2023 cybersecurity incident. Full-year adjusted EPS guidance stands at $5.08 to $5.22.