Cognizant Reports Q2 Earnings: Strong Revenue Growth, AI Focus, and Record Capital Return to Shareholders

Cognizant Technology Solutions reported a 7.2% YoY revenue increase in constant currency for Q2, reaching $5.2 billion. The company achieved an 18% YoY growth in Q2 bookings and improved its adjusted operating margin by 40 basis points YoY to 15.6%. Cognizant's AI initiatives have gained significant traction, with over 2,500 early GenAI client engagements in Q2. The company plans to return $2 billion to shareholders for the full year, an increase from the previously planned $1.7 billion.

Cognizant Technology Solutions (Cognizant) reported robust financial performance for the second quarter of 2025, with revenue growth and margin expansion driven by strategic investments in AI and technology. The company's revenue in constant currency increased by 7.2% year-over-year (YoY) to $5.2 billion, surpassing the high end of its guidance range [1].

Key highlights of Cognizant's Q2 2025 results include:

- Revenue Growth: Revenue grew by 8.1% YoY, or 7.2% in constant currency, reaching $5.25 billion. This marks a significant increase from the $4.85 billion reported in the same quarter last year [1].
- Operating Margin: The adjusted operating margin expanded by 40 basis points YoY to 15.6%, reflecting the company's continued focus on operational efficiency and cost management [1].
- Bookings Growth: Bookings increased by 18% YoY to $10.5 billion, driven by two mega deals with TCV of over $1 billion each. The trailing 12-month bookings reached $27.8 billion, a 6% YoY increase [1].
- Shareholder Returns: Cognizant plans to return approximately $2.0 billion to shareholders in 2025, an increase from the previously planned $1.7 billion. The company repurchased 4.5 million shares for $354 million during the second quarter and declared a quarterly cash dividend of $0.31 per share [1].
- AI Initiatives: Cognizant's AI initiatives have gained significant traction, with over 2,500 early GenAI client engagements in Q2. The company's AI-led solutions are helping clients transform their operations and enhance customer experiences [1].

Looking ahead, Cognizant expects third-quarter revenue to be in the range of $5.27 - $5.35 billion, representing growth of 4.6% to 6.1% YoY or 3.5% to 5.0% in constant currency. Full-year 2025 revenue is expected to be in the range of $20.7 - $21.1 billion, with adjusted operating margin guidance unchanged at 15.5% to 15.7% [1].

References:
[1] https://news.cognizant.com/2025-07-30-Cognizant-Reports-Second-Quarter-2025-Results