Quarterly Revenue Surpasses Guidance
Cognizant reported
second quarter 2025 revenue of $5.25 billion, representing an 8.1% year-over-year increase and exceeding the high end of its own guidance range. This performance was attributed to robust enterprise demand for digital transformation and IT consulting services[1][3].
Solid Profitability and Shareholder Returns
- Operating margin rose to 15.6%, a 100 basis point improvement from the prior year[1].
- GAAP earnings per share (EPS) were $1.31, marking a 15% increase year-over-year[1][2][3].
- Net income for the quarter reached $645 million, up from $566 million last year[2].
- The company noted record trailing 12-month bookings of $27.8 billion, up 6% from the prior period, driven by two mega deals each with total contract values above $1 billion[1].
- Shareholder returns for 2025 are now projected at $2.0 billion, up from the previous target of $1.7 billion[1].
Updated 2025 Outlook
- Full-year 2025 revenue guidance is forecast at $20.7–$21.1 billion, indicating growth of 4.7% to 6.7% (or 4.0% to 6.0% in constant currency)[1].
- Adjusted operating margin guidance remains unchanged at 15.5%–15.7%, representing a potential expansion of up to 40 basis points year-over-year[1].
Enterprise Demand Fuels Bookings
Cognizant highlighted that
enterprise demand for digital and IT consulting services drove significant growth, with Q2 bookings up 18% year-over-year. This momentum was underpinned by multiple large-scale contracts and reflects ongoing shifts towards cloud, automation, and advanced analytics[1].
NextGen Restructuring Program
The company concluded its
NextGen restructuring program at the end of 2024. Total charges for the program included $26 million in employee separation costs and $25 million in facility exit costs during the first half of 2024. The initiative was designed to streamline operations and enhance long-term profitability[1].
Market Reaction
Despite the strong results, Cognizant’s stock closed 1.84% lower on July 30, 2025, reflecting broader market trends rather than company performance[2].
Looking Ahead
Cognizant’s strengthened financials and positive growth outlook underscore its leadership in the global IT services industry as businesses accelerate adoption of next-generation technologies. The company continues to emphasize shareholder value and operational excellence through disciplined execution and strategic investments.
