Cognizant Technology Solutions Corp (NASDAQ:CTSH) reported its fourth-quarter results and guidance on Wednesday.
The information technology consulting and outsourcing company clocked a quarterly revenue growth of 4.9% year-over-year to $5.33 billion, topping the analyst consensus estimate of $5.31 billion.
The quarterly adjusted EPS of $1.35 beat the analyst consensus estimate of $1.32.
Profits And Margins
The adjusted operating margin expanded by 30 bps to 16.0%.
The GAAP operating margin expanded by 120 bps to 16.0%.
On a trailing-twelve-month basis, bookings increased 5% Y/Y to $28.4 billion, which represented a book-to-bill of approximately 1.3x.
Bookings in the quarter increased 9% Y/Y.
The quarterly bookings included twelve large deals, which are deals with a total contract value of $100 million or greater, of which two were mega deals, or deals with a total contract value of $500 million or greater.
On a trailing-twelve-month basis, Voluntary Attrition – Tech Services was 13.9% for the period ended December 31, 2025, as compared to 15.9% for the period ended December 31, 2024, respectively.
Total headcount as of December 31, 2025, was 351,600, an increase of 14,800 from December 31, 2024.
Cognizant generated $858 million in operating cash flow for the quarter, down from $920 million a year ago.
Buyback And Dividend
The company repurchased 4.3 million shares for $325 million during the quarter under its share repurchase program.
In February 2026, the company declared a quarterly cash dividend of $0.33 per share for shareholders of record on February 18, 2026. This dividend will be payable on February 26, 2026.
CFO Jatin Dalal said in 2025, the company surpassed the upper end of its guidance ranges, achieving strong revenue growth, a 50 basis point increase in adjusted operating margin, and an 11% growth in adjusted EPS.
Operational discipline helped maintain a robust free cash flow conversion of over 100% of net income, enabling the return of $2 billion to shareholders, he added.
Outlook
Cognizant expects first-quarter revenue of $5.360 billion-$5.440 billion, implying growth of 4.8%-6.3% (against an analyst consensus estimate of $5.348 billion).
The company expects full-year 2026 revenue of $22.140 billion-$22.660 billion, implying a growth of 4.9%-7.4% (against an analyst consensus estimate of $22.063 billion).
It expects a full-year 2026 adjusted EPS of $5.56-$5.70 (against an analyst consensus estimate of $5.62).
CTSH Price Action: Cognizant Tech Solns shares were down 2.68% at $72.50 during premarket trading on Wednesday, according to Benzinga Pro data.
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