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TEANECK, N.J. - Cognizant Technology Solutions Corporation (NASDAQ:CTSH) reported first-quarter results that exceeded analyst expectations and raised its full-year guidance, driven by strong demand for its digital services.
The IT services and consulting firm posted adjusted earnings per share of $1.23, surpassing the consensus estimate of $1.20. Revenue grew 7.5% YoY to $5.1 billion, above analysts’ projections of $5.06 billion.
"We started the year on a strong note, delivering revenue and adjusted operating margin ahead of our expectations, reflecting our steadfast focus on the execution of our strategy over the last several years," said CEO Ravi Kumar S.
Cognizant’s Health Sciences segment led growth with a 10.9% YoY revenue increase to $1.57 billion. The Products and Resources division also saw robust 12.8% growth to $1.28 billion, boosted by recent acquisitions.
For the second quarter, Cognizant forecasts revenue between $5.14 billion and $5.21 billion, above the $5.11 billion consensus. The company raised its full-year 2025 revenue outlook to $20.5-$21.0 billion from its previous guidance of $20.45-$20.95 billion.
Adjusted EPS for 2025 is now expected to be $4.98-$5.14, up from the prior range of $4.95-$5.11.
The company’s book-to-bill ratio for the trailing 12 months was 1.3, indicating strong future revenue potential. Cognizant returned $364 million to shareholders through share repurchases and dividends in Q1.
Chief Financial Officer Jatin Dalal noted, "Our first quarter performance reflects strong operational rigor in a period of elevated uncertainty. We delivered revenue above the high-end of our guidance and expanded adjusted operating margin by 40 basis points year-over-year."
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