Cognizant reported fourth-quarter adjusted diluted earnings of $1.35 per share, surpassing the Zacks Consensus Estimate of $1.32 and marking an 11.6% year-over-year improvement from $1.21 in Q4 2024. GAAP diluted EPS came in at $1.34, up from $1.10 a year earlier. Revenue for the period was $5.33 billion, a 4.9% increase versus the prior year and 3.8% on a constant-currency basis, 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%. Free cash flow conversion reached 120%, supported by strong operating cash flow conversion of 129%. The quarter’s bookings rose 9% to drive a trailing-twelve-month total of $28.4 billion, with 12 large deals signed in Q4, including two mega deals valued above $500 million each.

For full-year 2025, Cognizant achieved revenue of $21.11 billion, up 7.0% year-over-year (6.4% in constant currency), driven in part by the Belcan acquisition, which contributed approximately 260 basis points to growth. GAAP EPS was $4.56, a modest 1% increase, while adjusted EPS climbed 11% to $5.28. Adjusted operating margin expanded 50 basis points to 15.8%, and free cash flow conversion remained robust at over 100% of net income, enabling $2.0 billion in shareholder returns through repurchases and dividends. The board has approved a 6.5% dividend increase to $0.33 per share for Q1 2026 and plans $1.6 billion in capital return for the year, including $1.0 billion in buybacks. For 2026, Cognizant projects revenue growth of 4.0% to 6.5% on a constant-currency basis, adjusted operating margin expansion of 10 to 30 basis points to a range of 15.9%–16.1%, and adjusted EPS in the range of $5.56 to $5.70, representing 5% to 8% growth.