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TEANECK, N.J. - Cognizant Technology Solutions (NASDAQ:CTSH) reported second-quarter results that exceeded analyst expectations, with revenue climbing 8.1% year-over-year to $5.25 billion, surpassing the consensus estimate of $5.18 billion. The professional services company’s shares slipped 0.45% following the announcement.
Adjusted earnings per share came in at $1.31, beating analyst expectations of $1.26 and representing a 12% increase from the same period last year. The company’s operating margin expanded to 15.6%, up 100 basis points from the year-ago quarter.
"Our second quarter revenue performance exceeded the high end of our guidance range, underscoring the effectiveness of our strategy to build a resilient and durable portfolio that positions us to win in the AI era," said CEO Ravi Kumar S in a statement.
Cognizant reported record trailing 12-month bookings of $27.8 billion, up 6% year-over-year, with second-quarter bookings growth of 18%. The company secured two mega deals during the quarter, each with a total contract value exceeding $1 billion.
For the third quarter, Cognizant expects revenue between $5.27 billion and $5.35 billion, representing growth of 4.6% to 6.1%, or 3.5% to 5.0% in constant currency. The company narrowed its full-year 2025 constant currency revenue growth guidance to 4.0% to 6.0% while maintaining its adjusted operating margin forecast at 15.5% to 15.7%.
CFO Jatin Dalal noted that the company plans to return approximately $2.0 billion to shareholders this year, up from the previously announced $1.7 billion, reflecting "confidence in our long-term strategy."
By business segment, Products and Resources showed the strongest growth at 16.0% year-over-year, while Health Sciences and Financial Services grew by 6.2% and 6.9%, respectively. North America, which accounts for nearly 75% of total revenue, saw an 8.1% increase.
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