COGNIZANT TECHNOLOGY SOLUTIONS CORP SEC 10-Q Report

Cognizant Technology Solutions Corp, a leading provider of information technology, consulting, and business process outsourcing services, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial and operational achievements, showcasing the company's robust performance and strategic initiatives.

Financial Highlights

Revenues: $5,245 million, up $395 million or 8.1% from Q2 2024; an increase of 7.2% in constant currency. Growth driven by Financial Services and Health Sciences segments, with a significant contribution from the acquisition of Belcan.

Operating Income: $817 million, up $109 million or 15.4% from Q2 2024. Operating margin increased by 100 basis points to 15.6%, benefiting from NextGen program savings, operational efficiencies, and favorable foreign currency exchange rate movements.

Net Income: $645 million, up $79 million or 14.0% from Q2 2024, primarily driven by increased income from operations.

Diluted EPS: $1.31, up $0.17 or 14.9% from Q2 2024, reflecting improved operating performance and efficiency gains.

Business Highlights

Revenue Segments: The company reported revenue growth across all its business segments, with Health Sciences increasing by 6.2%, Financial Services by 6.9%, Products and Resources by 16.0%, and Communications, Media, and Technology (CMT) by 3.1% for the three months ended June 30, 2025.

Geographical Performance: North America led the geographical revenue growth with an 8.1% increase, followed by the United Kingdom at 8.6%, and Continental Europe at 10.6%. The Rest of the World saw a 4.7% increase in revenue.

Operational Efficiency: The company achieved operational efficiencies and net savings from its NextGen program, which positively impacted operating margins across all segments.

Acquisition Impact: The acquisition of Belcan contributed significantly to the revenue growth, adding approximately 400 basis points to overall revenue growth, particularly boosting the Products and Resources segment.

Future Outlook: The company anticipates continued demand for AI-based technologies and plans to invest significantly in AI capabilities to meet client needs. The repeal of the requirement to capitalize U.S. R&E costs is expected to result in a one-time, non-cash tax expense of approximately $400 million in Q3 2025, but also reduce cash taxes by $200 million in 2025.

SEC Filing: COGNIZANT TECHNOLOGY SOLUTIONS CORP [ CTSH ] - 10-Q - Jul. 30, 2025