Cognizant delivered adjusted earnings of $1.35 per share in the fourth quarter, outpacing the consensus estimate of $1.32 and marking a 12% year-over-year increase from $1.21. Revenue rose 4.9% to $5.33 billion, driven by 3.8% constant-currency growth. The company’s adjusted operating margin expanded to 16.0%, up 30 basis points from the prior year, reflecting improved project mix and cost discipline across its digital and cloud services portfolios.

For the full year, Cognizant reported revenue of $21.11 billion, up 7.0% year-over-year (6.4% in constant currency), and GAAP operating margin of 16.1%, a 140-basis-point improvement. Adjusted EPS reached $5.28, an 11% increase driven by margin expansion and robust free cash flow conversion of 120% of net income. Trailing twelve-month bookings climbed 5% to $28.4 billion, including 28 large deals signed during the year, with total contract value growth in large deals approaching 50%.

Management expects 2026 revenue growth of 4.0% to 6.5% on a constant-currency basis and adjusted operating margin of 15.9% to 16.1%. The company plans to return $1.6 billion to shareholders through $1 billion in share repurchases and dividends, having already increased the quarterly dividend by 6.5% to $0.33 per share. First-quarter revenue is forecast between $5.36 billion and $5.44 billion, implying growth of up to 6.3% year-over-year.