Cognizant Technology Solutions Corp - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.15%.
Did CTSH Beat Earnings? Q4 2025 Results
Cognizant closed out fiscal 2025 on a solid note, posting Q4 revenue of $5.33 billion, up 4.9% year-over-year and a hair above the $5.31 billion consensus estimate, while adjusted EPS of $1.35 edged past the $1.32 analyst forecast by 2.02%. The headline driver was a resurgent Financial Services segment, which delivered 10.5% revenue growth in the quarter, its fastest constant currency annual expansion since 2016, underscoring a broad-based recovery in client spending that helped the company exceed the high end of its own revenue guidance. Full-year adjusted EPS grew 11% to $5.28, with free cash flow conversion reaching 120% of net income, even as a one-time $390 million non-cash tax charge weighed on GAAP results in Q3. Trailing twelve-month bookings of $28.40 billion, a 1.3x book-to-bill ratio, and nearly 50% growth in large-deal TCV reinforced the demand picture. Looking ahead, Cognizant guided 2026 revenue of $22.14 billion to $22.66 billion, representing 4.9% to 7.4% growth, with adjusted EPS of $5.56 to $5.70, as the company leans into expanding AI partnerships and the recently completed 3Cloud acquisition.
- 28 large deals signed in 2025 with large deal TCV growth of nearly 50% YoY
- Financial Services segment achieved fastest constant currency annual growth since 2016
- Belcan acquisition contributed approximately 260 bps to full-year revenue growth
- Trailing 12-month bookings of $28.4 billion, book-to-bill of 1.3x
- Voluntary attrition improved to 13.9% from 15.9% YoY
- Operating cash flow conversion at 129% of net income for full year
- Constant currency organic growth of 3.8%, highest level since 2022
“I am deeply grateful to our over 350,000 employees who helped make 2025 a defining year for Cognizant in which we put our AI builder strategy in motion and returned to the 'winner's circle' two years ahead of the target we set at our Investor Day.”
Cognizant CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Cognizant expects revenue of $5.36 to $5.44 billion (4.8% to 6.3% YoY growth, or 2.7% to 4.2% in constant currency), including approximately 100 bps of inorganic contribution. For full-year 2026, the company guides revenue of $22.14 to $22.66 billion (4.9% to 7.4% YoY growth, or 4.0% to 6.5% in constant currency), including approximately 150 bps of inorganic contribution. Adjusted operating margin is expected to be 15.9% to 16.1% (10 to 30 bps expansion). Adjusted diluted EPS is expected to be $5.56 to $5.70 (5% to 8% growth). The company plans to return $1.6 billion to shareholders in 2026, including $1 billion in share repurchases. Adjusted effective tax rate is expected to be 25% to 26%, with a diluted share count of approximately 475 million.
CTSH YoY Financials
CTSH Revenue by Segment
CTSH Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.