Overview
Professional services firm's Q4 revenue slightly beat analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company plans to return $1.6 bln to shareholders in 2026
Outlook
Company expects 2026 revenue growth of 4.9% to 7.4%
Cognizant forecasts 2026 adjusted EPS of $5.56 to $5.70
Company plans to return $1.6 bln to shareholders in 2026
Result Drivers
AI INVESTMENTS - CEO Ravi Kumar S highlighted investments in AI platforms and partnerships as key to signing 28 large deals in 2025
ACQUISITION IMPACT - Acquisition of Belcan added approximately 260 basis points to full-year revenue growth
BOOKINGS GROWTH - Fourth quarter bookings increased 9% year-over-year, driven by large deals including two mega deals
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $5.33 bln | $5.31 bln (19 Analysts) |
Q4 Adjusted EPS | Beat | $1.35 | $1.32 (20 Analysts) |
Q4 EPS | $1.34 | ||
Q4 Adjusted Operating Margin | 16.00% | ||
Q4 Operating Income | $853 mln | ||
Q4 Operating Margin | 16.00% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Cognizant Technology Solutions Corp is $90.00, about 20.8% above its February 3 closing price of $74.50
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nPn6h9h85a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)