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- **Revenue Growth**: 6.5% YoY to $5.4B, outpacing peers with North America leading at +8%. 
- **AI-Driven Productivity**: 30% code generation (targeting 50%), 3,500 AI use cases, and 16 large deals. 
- **Margin Expansion**: 16% operating margin (+70bps YoY), free cash flow conversion 170%. 
- **Shareholder Return**: $1.5B returned YTD, on track for $2B annual target. 
- **Forward Momentum**: 40% YoY TCV growth in large deals, expanding into Europe and Asia Pacific.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $5.4 billion, up 6.5% YoY in constant currency, driven by North America and AI-led productivity. 
- **AI Strategy**: Expanded into 3 vectors (AI-led productivity, industrializing AI, agentifying the enterprise) with 3,500 AI use cases and 16 large deals (> $100M TCV). 
- **Large Deals**: Signed 6 large deals in Q3, bringing year-to-date total to 16, with TCV up 40% YoY. 
- **Employee Productivity**: Revenue per employee +8%, operating income per employee +10%, driven by AI tools (30% code generation, targeting 50% by year-end). 

**【CFO Financial Commentary】**
- **Margins**: Adjusted operating margin 16.0% (up 70bps YoY), free cash flow $1.2B (170% of net income). 
- **Cash Return**: Returned $1.5B to shareholders (dividends + buybacks), on track for $2B annual target. 
- **Tax Impact**: One-time $390M tax charge, but adjusted tax rate expected ~24-25%. 
- **Guidance**: Full year revenue growth 6% (vs. prior 4-6% range), adjusted EPS $5.22-5.26 (+10-11% YoY). 

**【Q&A Highlights】**
- **Deal Momentum**: 16 large deals YTD, 40% YoY TCV growth, with Europe and Asia Pacific gaining traction. 
- **Employee Upskilling**: 350,000 associates trained in AI, 15,000+ new hires focused on AI readiness. 
- **Partnerships**: Collaborations with Anthropic, Workfabric AI, and Google Gemini for enterprise AI scaling. 
- **Future Model**: Shifting to fixed-price, outcome-based services (47% of mix vs. 43% in 2024), driving margin expansion.

Cognizant Technology Solutions Corporation (CTSH) Q3 2025 Earnings Call Transcript

Revenue

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CTSH

CTSH fundamentals

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