Cognizant Technology Solutions Corporation reported a revenue increase of $1.372 billion, or 7.0%, for the fiscal year ending December 31, 2025, bringing total revenues to $21.108 billion. This growth was primarily driven by strong performance in the Health Sciences and Financial Services segments, which saw revenue increases of 6.4% and 6.8%, respectively. The acquisition of Belcan contributed approximately 260 basis points to this revenue growth. However, the Products and Resources and Communications, Media, and Technology segments experienced some weakness, which partially offset the overall growth.
In terms of profitability, Cognizant's income from operations rose by $497 million, or 17.2%, resulting in an operating margin of 16.1%, up from 14.7% in the previous year. The adjusted operating margin also improved to 15.8%, reflecting operational efficiencies and net savings from the NextGen program. However, the company faced increased compensation costs and the dilutive impact of the Belcan acquisition, which tempered some of the margin improvements. The diluted earnings per share (EPS) increased by $0.05, or 1.1%, to $4.56, while the adjusted diluted EPS rose by $0.53, or 11.2%, to $5.28.
Cognizant's workforce expanded to approximately 351,600 employees by the end of 2025, up from 336,800 in 2024. The company reported a voluntary attrition rate of 13.9%, a decrease from 15.9% in the previous year, indicating improved employee retention. The company continues to focus on enhancing its talent pool, particularly in AI and digital areas, to meet client demands. Cognizant's global delivery model remains a key operational strategy, with significant resources allocated to training and reskilling employees.
Strategically, Cognizant announced the acquisition of 3Cloud, a leading Microsoft Azure services provider, on January 1, 2026, which is expected to enhance its capabilities in AI-led business transformation. The company also placed $733 million in cash consideration in escrow for this acquisition, which is reflected in its financial statements as restricted cash. Additionally, Cognizant's Board of Directors approved a quarterly cash dividend of $0.33 per share, signaling a commitment to returning capital to shareholders.
Looking ahead, Cognizant anticipates continued demand for its services as clients focus on transforming into AI-ready, technology-driven businesses. The company plans to invest significantly in its AI capabilities to meet evolving client needs while navigating potential challenges from macroeconomic conditions and regulatory changes. Cognizant's management remains optimistic about its growth trajectory, emphasizing the importance of adapting to industry trends and maintaining operational efficiencies.
About COGNIZANT TECHNOLOGY SOLUTIONS CORP
Cognizant is a global professional services company specializing in digital transformation, IT consulting, application development, systems integration, automation, and AI solutions. It serves industries such as healthcare, financial services, manufacturing, and media, delivering tailored, industry-specific services through a global delivery model. Its core value lies in helping clients modernize technology, optimize processes, and create innovative, data-driven customer experiences.
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