Cognizant (CTSH) Q4 2025 Earnings Call Transcript

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Feb. 4, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Ravi Kumar

• Chief Financial Officer — Jatin Dalal

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Ravi Kumar: Thank you, Tyler. Good morning, everyone. Thank you for joining america today. I'm pleased to study our momentum continued successful the 4th quarter. Revenue maturation and adjusted operating borderline again outpaced our expectations. Looking astatine the quarter's highlights, gross grew 3.8% twelvemonth implicit twelvemonth successful changeless currency, each organic, driven by North America. By segment, fiscal services led maturation with changeless currency gross expanding 9% twelvemonth implicit twelvemonth during the 4th and 7% for the year, the highest yearly level since 2016. Q4 bookings grew 9% twelvemonth connected year, driving a grounds quarterly full declaration value. We signed 12 ample deals with TCV of $100 cardinal oregon greater, including 1 woody valued astatine much than $1 billion.

The worth of these ample woody wins is 60% greater than a twelvemonth ago. Adjusted operating borderline of 16% improved by 30 ground points twelvemonth implicit year. We present person implicit 4,000 AI engagements crossed each 3 vectors, and implicit 30% of our developer effort successful bundle improvement cycles is AI-assisted and cause tech. Our productivity improved arsenic fixed bid and transaction-based enactment present correspond much than 50% of our revenue. We besides saw a 5% and an 8% summation successful trailing twelve-month revenues and adjusted operating income per employee, respectively. These results drove 2025 revenues up 6.4% successful changeless currency, surpassing the $20 cardinal people and the precocious extremity of our guidance range. Importantly, we delivered profitable growth.

Our 15.8% adjusted operating borderline exceeded guidance, rising 50 ground points implicit past year. We achieved this effect portion investing successful our people, including done a merit rhythm for astir associates and our highest discretionary yearly bonus backing level since 2018. January marked my 3rd day arsenic Cognizant's CEO. When we began this travel successful aboriginal 2023, we acceptable retired to reclaim our winning heritage. In 2024, we successfully pivoted from stabilization to growth, industrialized a ample woody engine, and expanded our level strategy with AI-led investments to broaden our capabilities. In aboriginal 2025, we laid retired our strategical objectives to amplify talent, standard innovation, and accelerate growth.

We besides acceptable a extremity to scope our industry's winner's ellipse by 2027. I'm highly arrogant that we arrived 2 years aboriginal with top-tier gross growth. Throughout 2025, we executed with velocity and discipline, consistently gathering oregon beating the precocious extremity of our expectations each 4th arsenic our investments began shaping Cognizant into an AI builder susceptible of scaling agentic AI crossed our clients' landscapes. Looking astatine further milestones that show palmy execution connected our 3 strategical priorities, successful 2025, we promoted much than 35,000 associates. We signed 28 deals, each with TCV supra $100 million, with a combined TCV up astir 50% versus past year. This includes 5 mega deals with TCV of $500 cardinal oregon greater.