COGNIZANT TECHNOLOGY SOLUTIONS (CTSH) Company Report

Cognizant has entered into a definitive agreement to acquire 3Cloud, a leading Microsoft Azure services provider, to advance its AI builder strategy and enterprise AI solutions.
3Cloud will add 1,000+ Azure experts, 1,500+ Microsoft certifications, and nearly 1,200 employees to Cognizant’s global capabilities.
Since 2020, 3Cloud has delivered 20% organic CAGR and expects 20%+ growth in 2025, driven by strong demand for Azure-powered transformation.
The transaction is expected to close in Q1 2026, subject to regulatory approvals, with financial terms undisclosed.

Nov 13, 2025, 4:55 PM

Press Release

Cognizant reports Q3 2025 results

CTSH

Earnings

Guidance Update

Share Buyback

Revenue of $5.4 billion in Q3, up 6.5% year over year (constant currency); organic growth in all segments
Adjusted operating margin expanded ~70 bps to 16% and adjusted EPS grew ~11% to $1.39
Free cash flow of $1.2 billion in Q3 (170% of adjusted net income) and $1.9 billion year-to-date (100% conversion)
Returned $600 million to shareholders in Q3 and $1.5 billion year-to-date, on track to return $2 billion in 2025
Raised full-year guidance: FY revenue growth to 6.0–6.3% (constant currency); adjusted operating margin to ~15.7%; EPS to $5.22–$5.26; Q4 revenue growth of 2.5–3.5%

Oct 29, 2025, 12:30 PM

Transcript

Cognizant reports Q3 2025 results

CTSH

Earnings

Guidance Update

Share Buyback

In Q3, revenue reached $5.4 billion, up 6.5% year-over-year in constant currency with organic growth across all segments.
Adjusted operating margin expanded by 70 bps to 16.0%, reflecting AI-enabled delivery improvements and disciplined cost management.
Adjusted EPS grew 11% year-over-year to $1.39; free cash flow was $1.2 billion (170% of adjusted net income), and $600 million was returned to shareholders via buybacks and dividends.
Q4 guidance targets 2.5%–3.5% constant-currency revenue growth (all organic); full-year adjusted margin is raised to ~15.7% and EPS forecast is $5.22–$5.26.

Oct 29, 2025, 12:30 PM

Transcript

Cognizant reports Q3 2025 results

CTSH

Earnings

Guidance Update

Revenue Acceleration/Inflection

Revenue of $5.4 billion, up 6.5% YoY in constant currency; year-to-date revenue +7.3%, including 350 bps of inorganic growth.
Q3 adjusted operating margin of 16%, improving 70 bps YoY.
Adjusted EPS of $1.39, +11% YoY; free cash flow of $1.2 billion (170% of adjusted net income); returned $600 million to shareholders in Q3 (YTD $1.5 billion); on track for $2 billion in 2025.
Signed 6 large deals (TCV ≥ $100 million) in Q3 (16 YTD); trailing 12-month bookings +5% YoY; YTD TCV of large deals +40%.
Q4 revenue guidance of +2.5% to +3.5% YoY in constant currency (all organic); full-year revenue now expected to grow 6.0%–6.3% cc, above prior range.

Oct 29, 2025, 12:30 PM

Transcript

Cognizant announces Q3 2025 results

CTSH

Earnings

Guidance Update

Revenue rose 7.4% Y/Y as reported and 6.5% in constant currency, with contributions from recent acquisitions.
GAAP and Adjusted Operating Margin both expanded to 16.0%, up from 14.6% and 15.3% in Q3 2024, respectively.
Adjusted Diluted EPS was $1.39, versus GAAP Diluted EPS of $0.56 (reflecting a one-time, non-cash tax expense of $0.80).
Operating Cash Flow reached $1.227 B and Free Cash Flow $1.160 B, compared to $847 M and $791 M in Q3 2024.
Full-year 2025 revenue is guided to $21.05 B–$21.10 B, Q4 revenue to $5.27 B–$5.33 B, and Adjusted Diluted EPS to $5.22–$5.26.

Oct 29, 2025, 12:30 PM

Presentation

Cognizant reports Q3 2025 results

CTSH

Earnings

Guidance Update

Share Buyback

Revenue of $5.4 billion, up 7.4% YoY (6.5% CC) and 2.8% sequential CC, driven by six large deals bringing YTD total to 16 and 40% growth in large deal TCV
Operating margin of 16.0% (GAAP and adjusted); GAAP EPS $0.56 and Adjusted EPS $1.39 in Q3
Free cash flow of $1.16 billion and cash flow from operations of $1.227 billion; returned $463 million in share repurchases and $151 million in dividends in Q3
Trailing 12-month bookings of $27.5 billion (book-to-bill ~1.3x); Q3 bookings down 5% YoY
Q4 revenue guidance of $5.27–5.33 billion (2.5–3.5% CC growth) and FY2025 revenue guidance of $21.05–21.10 billion (6.0–6.3% CC); FY Adj. EPS guidance $5.22–$5.26

Oct 29, 2025, 10:32 AM

8-K

Cognizant announces Q3 2025 results

CTSH

Earnings

Guidance Update

Share Buyback

Revenue of $5.42 billion grew 7.4% y/y (6.5% CC) and 3.2% sequentially; trailing-12-month bookings reached $27.5 billion (+5% y/y; book-to-bill ~1.3x)
Operating margin of 16.0% (+140 bps y/y); Adjusted operating margin also 16.0% (+70 bps y/y)
GAAP EPS of $0.56 (includes $0.80 one-time tax); Adjusted EPS of $1.39 (+11% y/y)
Year-to-date return of $1.5 billion to shareholders via repurchases and dividends; repurchased 6.3 million shares for $450 million in Q3; $2.2 billion remaining authorization
Q4 revenue guidance of $5.27–$5.33 billion (3.8%–4.8% y/y; 2.5%–3.5% CC); FY 2025 revenue guidance of $21.05–$21.10 billion (6.6%–6.9% y/y; 6.0%–6.3% CC); adjusted margin ~15.7%; adjusted EPS $5.22–$5.26

Oct 29, 2025, 10:30 AM

Press Release

Cognizant partners with Venbrook on AI-powered P&C claims solution

CTSH

New Projects/Investments

Cognizant and Venbrook Group, LLC have entered a strategic partnership to co-develop an agentic AI-powered Third-Party Administrator (TPA) solution for the property & casualty claims lifecycle, aiming to digitize key claims processes and reduce costs for insurers.
Under the agreement, Cognizant will provide Venbrook with claims processing, policy administration, financial operations, and compliance services, leveraging its nationwide network of licensed adjusters.
The joint solution integrates agentic AI for workflow orchestration and generative AI for customer communications and predictive modeling, targeting faster claim resolution, improved accuracy, early fraud detection, and scalable operations.
Venbrook contributes 44 years of claims expertise, licenses in all 50 states, and a nationwide adjuster network, while Cognizant brings deep experience in AI, automation, and large-scale insurance operations.

Sep 17, 2025, 12:03 PM

Press Release

Cognizant outlines AI-driven growth strategy at Goldman Sachs conference

CTSH

Revenue Acceleration/Inflection

M&A

CEO Ravi Kumar reported 6–7% y/y growth over the last few quarters and a rise in machine-written code from 18% to 30%, driving productivity gains shared with clients.
Introduced a two-vector AI approach: vector 1 applies AI to software cycles to generate savings for innovation, while vector 2 builds agentic AI layers to unlock new labor pools and fuel operations outsourcing.
Highlighted that 2023 investments in AI-led productivity tooling positioned Cognizant at the top of its peer group, supporting margin expansion and 7–10% EPS growth this year.
M&A focus on broadening non-U.S. presence, diversifying beyond BFSI and healthcare, and acquiring boutique AI/IP assets to deliver enterprise-grade agentic solutions.

Sep 10, 2025, 8:45 PM

Transcript

Cognizant outlines AI market opportunity and growth strategy at Citi TMT Conference

CTSH

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Cognizant defines the AI market in three vectors—productivity unlocking (vector 1), industrializing AI across data, compute, and digital engineering (vector 2), and agentification (vector 3)—noting strong current demand in vector 1 and forecasting larger opportunities in vectors 2 and 3 over the next few quarters.
The company has built a large-deal engine, winning 4–6 deals of $100 million+ each quarter and targeting mega deals ($500 million–$1 billion+) with enhanced sales, support, and execution capabilities.
Sector dynamics show four consecutive quarters of YoY growth in financial services after addressing structural issues, while health care remains robust, driven by TriZetto platforms that cover two-thirds of the U.S. insured population.
Growth levers include expanding into underpenetrated subsegments (health care providers, communications & media) and new markets (aerospace & defense via Belcan), and extending domain-centric platforms like TriZetto into adjacent verticals.

Sep 3, 2025, 6:54 PM

Earnings Transcripts

Quarterly earnings call transcripts for COGNIZANT TECHNOLOGY SOLUTIONS.

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