Cognizant Technology Solutions (CTSH) FY2025 results: revenue $21.1 billion, up 7.0% on the year
Cognizant Technology Solutions Corp. (CTSH) reported revenue of $21.1 billion for fiscal 2025, the year ended 31 December 2025, up 7.0% on the year before. Net income was $2.2 billion, down 0.4%, and diluted earnings per share $4.56. The figures are the company's own, from the 10-K it filed with the SEC on 12 February 2026.
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
Guidance figures: 1 raised, 5 new.
- Full-year revenue rose 7.0%: Full-year revenue was $21.1 billion, up 7.0% or 6.4% in constant currency, after 2.0% growth in 2024. The Belcan acquisition contributed about 260 basis points.
- Adjusted EPS rose 11% for year: Full-year adjusted diluted EPS was $5.28, up 11%, while GAAP diluted EPS was $4.56, up 1%. Fourth quarter adjusted diluted EPS was $1.35, against $1.21.
- Bookings up 5% over trailing year: Trailing-twelve-month bookings were $28.4 billion, up 5%, a book-to-bill of about 1.3x. Fourth quarter bookings rose 9% year-over-year.
- Adjusted margin up 50 basis points: Full-year adjusted operating margin was 15.8%, up 50 basis points from 15.3%. Fourth quarter GAAP operating margin was 16.0%, up from 14.8%.
- Full-year free cash flow rose: Full-year free cash flow was $2,665 million, against $1,827 million. The CFO said free cash flow conversion was more than 100% of net income for the year.
From this 10-K
Cognizant is a professional services company that builds, runs and modernises the technology large organisations depend on. Its services cover consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure and security, and business process services and automation, and it also develops, licenses, implements and supports its own and third-party software products and platforms. Work is tailored by industry and delivered through a mix of teams based at client sites and dedicated global and regional delivery centres. In 2025 it reported four industry-based segments: Health Sciences, Financial Services, Products and Resources, and Communications, Media and Technology.
The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025
Income statement (profit and loss)
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Revenue | 21,108 | 19,736 | 19,353 | +7.0% | |
| Cost of revenue | 13,991 | 12,958 | 12,664 | +8.0% | |
| Gross profit | 7,117 | 6,778 | 6,689 | +5.0% | |
| Gross margin | 33.7% | 34.3% | 34.6% | ||
| Selling, general and administrative | 3,240 | 3,223 | 3,252 | +0.5% | |
| Operating income | 3,389 | 2,892 | 2,689 | +17.2% | |
| Operating margin | 16.1% | 14.7% | 13.9% | ||
| Interest expense | 37.0 | 54.0 | 41.0 | -31.5% | |
| Pre-tax income | 3,479 | 2,938 | 2,787 | +18.4% | |
| Income tax | 1,258 | 713 | 668 | +76.4% | |
| Effective tax rate | 36.2% | 24.3% | 24.0% | ||
| Net income | 2,230 | 2,240 | 2,126 | -0.4% | |
| Net margin | 10.6% | 11.3% | 11.0% | ||
| Diluted EPS | $4.56 | $4.51 | $4.21 | +1.1% |
Read more
Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.Cash flow
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Operating cash flow | 2,883 | 2,124 | 2,330 | +35.7% | |
| Capital expenditure | 288 | 297 | 317 | -3.0% | |
| Free cash flow | 2,595 | 1,827 | 2,013 | +42.0% | |
| Free cash flow margin | 12.3% | 9.3% | 10.4% | ||
| Cash from investing | -230 | -1,646 | -331 | ||
| Cash from financing | -2,272 | -915 | -1,609 | ||
| Depreciation and amortisation | 550 | 542 | 555 | +1.5% | |
| Share-based compensation | 181 | 175 | 176 | +3.4% | |
| Buybacks | 1,378 | 605 | 1,064 | +127.8% | |
| Dividends paid | 610 | 600 | 591 | +1.7% | |
| Dividend per share | $1.24 | $1.20 | $1.16 | +3.3% | |
| Diluted shares, weighted | 489m | 497m | 505m | -1.6% | |
| Shares outstanding at period end | 479m | 495m | 498m | -3.2% |
Balance sheet
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Shareholders' equity | 15,015 | 14,408 | 13,227 | +4.2% | |
| Debt | 576 | 908 | 639 | -36.6% | |
| Operating lease liabilities | 423 | 420 | 523 | +0.7% | |
| Finance lease liabilities | 12.0 | 15.0 | 16.0 | -20.0% | |
| Other liabilities | 4,666 | 4,215 | 4,078 | +10.7% | |
| Total liabilities and equity | 20,692 | 19,966 | 18,483 | +3.6% | |
| Fixed assets | 933 | 994 | 1,048 | -6.1% | |
| Goodwill | 7,106 | 6,953 | 6,085 | +2.2% | |
| Intangible assets | 1,417 | 1,599 | 1,149 | -11.4% | |
| Investments | 124 | 102 | 449 | +21.6% | |
| Cash and equivalents | 1,901 | 2,231 | 2,621 | -14.8% | |
| Receivables | 4,439 | 4,059 | 3,849 | +9.4% | |
| Other assets | 4,772 | 4,028 | 3,282 | +18.5% | |
| Total assets | 20,692 | 19,966 | 18,483 | +3.6% |
10-K for the year ended 31 December 2025, filed 12 February 2026: the filing.