Cognizant's 88.69% Volume Surge Ranks 184th as Earnings Beat and Revenue Growth Fuel Market Optimism

On July 31, 2025, Cognizant (CTSH) traded with a volume of 0.74 billion, surging 88.69% from the prior day and ranking 184th in trading activity. Despite a 2.41% decline in share price, the firm reported Q2 earnings of $1.31 per share, surpassing estimates by 3.97% and marking a 12% year-over-year increase. Revenue reached $5.25 billion, exceeding expectations by 1.01%, driven by the Belcan acquisition and 7.2% organic growth in Health Sciences and Financial Services. The Belcan deal contributed approximately 400 basis points to revenue growth. Bookings totaled $27.8 billion trailing twelve months, with a 6% year-over-year rise and a book-to-bill ratio of 1.4x. Six large deals, including two $1 billion mega contracts, doubled total contract value year-over-year. Cognizant also reported 2,500 early-stage Generative AI client engagements in Q2.

Segment performance highlighted Financial Services revenue growth of 6.9% to $1.55 billion, Health Sciences revenue of $1.55 billion up 6.2%, and 16% growth in Products and Resources. Geographically, North America contributed 74.6% of total revenue with 8.1% year-over-year growth, while Europe grew 9.6%. Operating margins expanded to 15.6% (adjusted) on cost discipline and NextGen program savings. Free cash flow stood at $331 million, with $521 million returned to shareholders via buybacks and dividends in Q2. The company raised 2025 guidance, projecting $20.7–21.1 billion in revenue (4.7–6.7% growth) and $5.08–5.22 in adjusted EPS, reflecting confidence in AI-driven innovation and large deal momentum.

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