#USA #Teaneck #Financial Growth #Cognizant Technology #Q1 Reports

Cognizant's Q1 2025 Financial Performance

Cognizant Technology Solutions Corporation reported its financial results for the first quarter of 2025, highlighting a remarkable growth trajectory. The company achieved a revenue of $5.1 billion, marking a 7.5% increase year-over-year. In constant currency, this growth was even more pronounced, at 8.2%. This achievement surpassed the high end of the company's guidance expectations.

CEO Ravi Kumar S expressed his satisfaction with the results, noting that the company's focus on strategy execution has been vital in navigating the challenges within the macroeconomic environment. "Our robust portfolio and comprehensive expertise position us as a key strategic partner for clients, particularly as productivity, cost-reduction, and resilience become increasingly critical in today’s business landscape," he stated.

The operating margin for the quarter sat at 16.7%, which showed a 210 basis point increase compared to the previous year. An Adjusted Operating Margin of 15.5% reflects a 40 basis point increase, demonstrating Cognizant's operational efficiency.

In terms of earnings, GAAP EPS reached $1.34, up 22% year-over-year, while the Adjusted EPS was $1.23, reflecting a 10% growth over the same period. This strong earnings performance underlines Cognizant's operational rigor during challenging times.

Bookings and Shareholder Returns

Cognizant also reported trailing twelve-month bookings of $26.7 billion, which grew by 3% compared to the previous year. Despite this growth, bookings for the first quarter saw a 7% decline year-over-year. However, four significant deals valued at over $100 million each were included in these announcements, hinting at future growth opportunities.

In terms of shareholder returns, the company repurchased 2.3 million shares for $190 million and announced plans to return approximately $1.7 billion through buybacks and dividends in 2025. Cognizant has designed a quarterly cash dividend of $0.31 per share for shareholders on record as of May 19, 2025, payable on May 28, 2025.

Future Guidance

Looking ahead, Cognizant maintains its revenue growth guidance for 2025 at 3.5% to 6.0% in constant currency. The company anticipates that the second-quarter revenue will fall between $5.14 billion and $5.21 billion, presenting growth rates of 5.9% to 7.4%. For the full year, revenue estimates stand at $20.5 billion to $21.0 billion, reflecting a commitment to sustaining upward momentum in the coming quarters.

Strategic Partnerships

Cognizant continues to forge strategic partnerships that enhance its capabilities and market position. Recent agreements with various companies showcase its plans to leverage AI technologies and expand its influence across various sectors:

• - The company collaborated with Boehringer Ingelheim to phase out legacy systems with a comprehensive technology platform.
• - An agreement with Citizens Financial Group aims to establish a Global Capability Center in Hyderabad to enhance technology execution.
• - An expanded contract with Docusign focuses on improving customer support and driving digital transformations.
• - A partnership with Travelport seeks to streamline operations using Cognizant's innovative platforms.
• - Collaboration with OMRON Corporation aims to integrate IT and operational technologies in manufacturing.

Looking Ahead

Overall, the results from Q1 2025 paint a promising picture for Cognizant, with a strong emphasis on leveraging AI technologies to foster growth and operational efficiency. As the company navigates through an evolving landscape, its balance of stability and innovation allows it to remain relevant and poised for future success. Stakeholders eagerly await the impact of these strategic moves as Cognizant continues to build a sustainable and profitable pathway forward.