Cognizant Q2 Revenue Surges 8.1% and Operating Margin Expands to 15.6% Amid Share Price Dip and Boosted Shareholder Returns

On July 30, 2025, Cognizant (CTSH) reported Q2 revenue of $5.25 billion, up 8.1% year-over-year, with operating margin expanding to 15.6%. The company announced a 1.84% share price decline, trading at $0.39 billion volume. Adjusted EPS rose 12% to $1.31, while trailing 12-month bookings hit $27.8 billion, a 6% increase. Cognizant raised its 2025 shareholder return plan to $2 billion, up from $1.7 billion, and reaffirmed adjusted operating margin guidance of 15.5%-15.7%.

The results highlighted resilience in AI-driven growth, with two mega deals contributing over $1 billion in total contract value. Despite strong revenue performance and margin expansion, the stock dipped, potentially reflecting cautious guidance adjustments. The firm’s narrowed 2025 revenue outlook (4.0%-6.0%) and increased capital returns signaled a balance between growth and shareholder focus. Organic growth across segments, including a 16% rise in Products & Resources, underscored operational strength, though the Belcan acquisition’s 400-basis-point contribution to revenue growth suggests organic momentum remains a key focus.

Cognizant’s Q2 buyback of 4.5 million shares for $354 million and a $0.31 dividend reinforced its capital allocation strategy. The company’s 18% bookings growth, driven by AI platforms and strategic partnerships, reinforced long-term positioning in enterprise transformation. However, mixed market reactions to guidance revisions and macroeconomic uncertainties may have tempered investor enthusiasm, contributing to the post-earnings decline.

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