Cognizant (CTSH) Q3 2025 Earnings Transcript

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Tue, April 21, 2026 astatine 10:52 AM CDT 43 min read

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Wednesday, Oct. 29, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Ravi Kumar S

• Chief Financial Officer — Jatin Dalal

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Ravi Kumar S: Thank you, Tyler and bully morning, everyone. Thank you for joining us. We are pleased to study different industry-leading show successful the 3rd 4th of 2025 arsenic gross maturation and adjusted operating borderline again outpaced our expectations. Our results bespeak the momentum we person built implicit the past 2.5 years, helping clients clasp AI. Our investments successful platforms, intelligence property, partnerships and successful upskilling our radical are evolving Cognizant into an AI builder, susceptible of scaling agentic AI crossed the enterprise. As AI infrastructure expands, our clients progressively request enactment from partners who tin assistance them determination from experimentation to enterprise-wide adoption with speed, precision and trust. Turning to 3rd 4th highlights.

Revenue grew 6.5% year-over-year successful changeless currency to $5.4 billion. All 4 of our operating segments grew gross organically year-over-year. This breadth of show crossed industries and geographies reflects the spot and resilience of our portfolio of capabilities and transportation model. This is the 5th consecutive 4th of year-over-year integrated gross growth, our strongest sequential integrated maturation since 2022 and different podium decorativeness to our adjacent group's Winner's Circle. We signed 6 ample deals each with TCV of $100 cardinal oregon more, bringing our year-to-date full to 16. Trailing 12 months bookings is up 5% year-over-year and year-to-date, the TCV of our ample deals is up 40% from the anterior twelvemonth period.

We are focused connected converting worth from AI crossed our 3,500 aboriginal AI engagements and embracing AI successful the transportation of our services and to thrust interior transformation. As we bash this, we are besides expanding our fixed bid transaction and outcome-based services mix. And we are opening to spot trends of nonlinearity emerge. For example, connected a trailing 12-month basis, gross per worker roseate 8% year-over-year, portion adjusting operating margin, income per worker grew 10%. As we proceed to standard our IP and platforms, we expect much examples of nonlinear AI-led maturation to emerge. Importantly, we are expanding margins portion continuing to money our integrated and inorganic maturation initiatives and expanding returns to shareholders.

Q3 adjusted operating borderline improved 70 ground points year-over-year, driven by our disciplined disbursal absorption on with our progressively AI-enabled transportation model. Our year-to-date show has enactment america connected way to outperform the gross guidance we established astatine the opening of the twelvemonth and we expect to conscionable the precocious extremity of the adjusted operating borderline scope we acceptable then. For overmuch of the past 30 years, IT services grew done a linear model. More radical and much projects drove incremental growth. AI is reshaping that equation by compressing time, outgo and complexity and redefining however worth is created. The accidental to spouse with our clients and thrust outcomes is present much expansive, immersive and elastic.