Q4 2025 Cognizant Technology Solutions Corp Earnings Call Transcript
Key Points
- Cognizant Technology Solutions Corp (CTSH) reported a 3.8% year-over-year revenue growth in constant currency for Q4 2025, driven by strong performance in North America.
- The company achieved a record quarterly total contract value with Q4 bookings growing 9% year-on-year, including 12 large deals with a total contract value of $100 million or more.
- Adjusted operating margin improved to 16%, a 30 basis point increase year-over-year, indicating effective cost management and operational efficiency.
- Cognizant Technology Solutions Corp (CTSH) surpassed the $20 billion revenue mark for 2025, with a 6.4% increase in constant currency, reaching the high end of their guidance range.
- The company returned $2 billion to shareholders through dividends and share repurchases, reflecting strong cash flow and commitment to shareholder value.
- Despite overall growth, the company faced a modest decline in annual contract value due to the mix of longer-duration deals and softness in small deal banks.
- The adjusted effective tax rate is expected to increase in 2026, driven by discrete beneficial items in 2025 that are not expected to repeat.
- Cognizant Technology Solutions Corp (CTSH) anticipates a modest increase in defined benefit costs due to changes in India's labor code.
- The company expects a modest sequential decline in organic revenue for Q1 2026 due to lower bill days.
- There is ongoing macroeconomic complexity and technological change, which could impact traditional discretionary spending cycles and client expectations.
Ladies and gentlemen, welcome to the Cognizant Technology Solutions Year-end Fourth Quarter 2025 Earnings Conference Call. (Operator Instructions) Thank you.
I would now like to turn the conference over to Mr. Tyler Scott, Senior Vice President, Investor Relations. Thank you. Please go ahead, sir.
hank you, operator, and good morning, everyone. Welcome to Cognizant's Fourth Quarter and Full Year 2025 Earnings Call. I am joined today by Ravi Kumar, our CEO; and Jatin Dalal, our CFO. By now you should have received a copy of the earnings release and the investor supplement. If you have not, copies are available on our website, cognizant.com.
Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties as described in the company's earnings release and other filings with the SEC.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
