Cognizant Technology Solutions Corporation, listed on NASDAQ:CTSH, is a leading provider of IT services, consulting, and business process outsourcing. The company operates globally, with a strong presence in North America. Cognizant competes with other major IT service providers like Accenture and Infosys. On October 29, 2025, Cognizant reported impressive financial results for the third quarter.
Cognizant's earnings per share (EPS) reached $1.39, surpassing the estimated $1.29. This 11% year-over-year increase in adjusted EPS highlights the company's strong performance despite a decline in GAAP EPS to $0.56 due to a one-time, non-cash income tax expense of $0.80. The company's revenue of $5.42 billion exceeded expectations and marked a 7.4% increase from the previous year.
The company's operating margin improved to 16.0%, a 140 basis point increase from the previous year. The adjusted operating margin also rose by 70 basis points, reflecting efficient cost management. Cognizant's trailing 12-month bookings reached $27.5 billion, a 5% increase from the previous year, indicating strong demand for its services.
Cognizant has returned $1.5 billion to shareholders through share repurchases and dividends in 2025, with plans to return $2 billion by year-end. The company raised its 2025 constant currency revenue growth guidance to 6.0%-6.3%, surpassing prior guidance. The adjusted operating margin guidance for 2025 is now approximately 15.7%, a 40 basis point expansion year-over-year.
CEO Ravi Kumar S emphasized the company's strategic focus on AI-led platforms and intellectual property, which is expected to drive future growth. Cognizant's financial metrics, such as a P/E ratio of 13.70 and a low debt-to-equity ratio of 0.077, indicate a strong financial position. The current ratio of 2.41 suggests robust liquidity, ensuring the company can meet its short-term obligations.
