Cognizant Reports 8.1% Revenue Growth in Q2 2025, EPS Steady at $1.31

Reuters
Jul 31
Cognizant Reports 8.1% Revenue Growth in <a href="https://laohu8.com/S/QTWO">Q2</a> 2025, EPS Steady at $1.31

Cognizant Technology Solutions Corporation has reported its financial results for the second quarter of 2025, highlighting a year-over-year revenue increase of 8.1%, reaching $5.245 billion. In constant currency terms, the revenue rose by 7.2%. The company's GAAP operating margin improved from 14.6% in the second quarter of 2024 to 15.6% in the same quarter of 2025. The adjusted operating margin also showed an increase to 15.6%. The diluted earnings per share remained stable at $1.31 for the quarter. Operating cash flow increased significantly from $262 million in Q2 2024 to $398 million in Q2 2025, while free cash flow rose from $183 million to $331 million over the same period. The acquisition of Belcan contributed approximately 400 basis points to the year-over-year revenue growth. In terms of geographical performance, North America saw an 8.1% year-over-year increase in revenue, aligning with constant currency growth. Europe experienced a 9.6% increase in revenue, with a 4.0% increase in constant currency terms. The Rest of the World region reported a 4.7% increase in revenue, with a constant currency growth of 6.0%. Revenue from the Products & Resources segment saw a significant increase of 16.0% year-over-year, with a constant currency growth of 14.7%, largely driven by the acquisition of Belcan. The Financial Services segment grew by 6.9% year-over-year, with a 6.0% increase in constant currency terms. The Communications, Media & Technology segment had a modest growth of 3.1%, with a 2.2% increase in constant currency. No specific guidance for future periods was provided within the released document.

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