Cognizant Technology Solutions Corp - Class A

Cognizant delivered a convincing third quarter, with adjusted diluted EPS of $1.39 beating the $1.30 consensus estimate by 6.73% and revenue of $5.42 billion clearing expectations by 1.83% on 7.4% year-over-year growth, as the company marked its fifth consecutive quarter of organic revenue expansion. The quarter's standout driver was broad-based demand momentum, anchored by the Belcan acquisition contributing roughly 250 basis points to growth and six large deals signed with total contract values exceeding $100 million each, bringing year-to-date TCV growth to 40%. GAAP results were clouded by a $390 million non-cash tax charge tied to the One Big Beautiful Bill Act's repeal of R&E cost capitalization requirements, pulling GAAP diluted EPS to $0.56 from $1.17 a year ago, though adjusted figures reflected genuine underlying progress. The strong performance prompted management to raise full-year 2025 constant currency revenue growth guidance to 6.0%-6.3%, with full-year adjusted EPS now expected in the $5.22-$5.26 range, a signal of growing confidence in the company's AI-driven digital transformation pipeline at a time when peers are similarly lifting their outlooks.