Cognizant reported fourth-quarter adjusted earnings of $1.35 per share, surpassing the consensus estimate of $1.32 and up from $1.21 in the year-ago quarter. GAAP diluted EPS came in at $1.34, a notable improvement from $1.10 in Q4 2024. Revenue reached $5.33 billion, marking a 4.9% year-over-year increase (3.8% in constant currency) and exceeding the company’s own guidance range. Operating margin expanded to 16.0%, up 120 basis points year-over-year, while adjusted operating margin held steady at 16.0%. Robust performance was driven by strong demand across digital engineering and cloud services, underpinning the beat on both top and bottom lines.

For the full year, revenue climbed 7.0% to $21.11 billion (6.4% in constant currency), outpacing prior guidance. Adjusted operating margin rose 50 basis points to 15.8%, while GAAP operating margin expanded 140 basis points to 16.1%. Adjusted EPS increased 11% to $5.28, and GAAP EPS reached $4.56, up 1%. Trailing-12-month bookings totaled $28.4 billion, a 5% increase, buoyed by 28 large deals (12 of which were signed in Q4), including two mega deals with TCVs exceeding $500 million. The acquisition of Belcan contributed approximately 260 basis points to full-year revenue growth, underscoring successful integration of strategic investments.

In 2025 Cognizant returned $2 billion to shareholders, repurchasing 17.4 million shares for $1.3 billion and declaring dividends totaling $0.33 per share for Q1 2026—a 6.5% increase. As of year-end, $1.9 billion remained under the repurchase authorization. Looking ahead, the company plans $1.6 billion in shareholder returns during 2026, including $1 billion in buybacks. Guidance for 2026 calls for revenue growth of 4.0% to 6.5% in constant currency, reaching up to $22.66 billion, and adjusted operating margin expansion to 15.9%–16.1%. Adjusted EPS is projected between $5.56 and $5.70, representing 5% to 8% growth year-over-year.