COGNIZANT Q4 2025 REVENUE UP BY 4.9%

By Chris Stiles • Wednesday, February 04 12:03 • Permanent Link

Cognizant, a global professional services company, has reported its fourth quarter and full-year 2025 financial results. The company's fourth-quarter revenue stood at $5.3 billion, marking a 4.9% increase year-over-year, or a 3.8% increase in constant currency. The full-year revenue for 2025 reached $21.1 billion, reflecting a 7.0% increase year-over-year, or 6.4% in constant currency.

Cognizant's full-year operating margin saw a significant increase, reaching 16.1%, marking a 140 basis points rise year-over-year. The adjusted operating margin also increased to 15.8%, up by 50 basis points year-over-year.

In terms of earnings per share (EPS), the company's full-year GAAP EPS reached $4.56, marking a 1% increase year-over-year. However, the adjusted EPS saw a more substantial increase, reaching $5.28, up by 11% year-over-year.

The company's trailing 12-month bookings reached $28.4 billion, marking a 5% increase year-over-year, driven by a 9% growth in the fourth quarter. Notably, Cognizant signed 28 large deals in 2025, including 12 in the fourth quarter.

Looking ahead to 2026, Cognizant expects to return $1.6 billion to shareholders through share repurchases and dividends, including $1 billion of share repurchases. The cash dividend has been increased by 6.5% to $0.33 per share for Q1 2026.

For the upcoming year, the company has provided guidance, forecasting a constant currency revenue growth of 4.0% to 6.5%. Additionally, the adjusted operating margin guidance is set at 15.9% to 16.1%, representing an expansion of 10 to 30 basis points.

In terms of specific financial metrics, the company reported an operating cash flow conversion of 129%, significantly higher than the 95% reported for the previous year. The free cash flow conversion also saw a substantial increase, reaching 120%, up from 82% in the prior year.

Cognizant's acquisition of Belcan contributed approximately 260 basis points to revenue growth for the full year ended December 31, 2025. It's worth noting that the GAAP diluted EPS includes a one-time non-cash income tax charge that negatively impacted the full year of 2025 by $0.80.

Today the company's shares have moved -0.09% to a price of $84.74. For more information, read the company's full 8-K submission here.

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