Overview

* Cognizant Q3 revenue grows 7.4% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 rises 11% yr/yr, surpassing analyst estimates

* Company raises 2025 revenue growth guidance to 6.0%-6.3% in constant currency

Outlook

* Cognizant expects Q4 revenue of $5.27 bln to $5.33 bln

* Full-year 2025 revenue forecasted at $21.05 bln to $21.10 bln

* 2025 adjusted EPS expected between $5.22 and $5.26

Result Drivers

* NORTH AMERICA AND SEGMENTS - Revenue growth driven by strong performance in North America and organic growth across all segments

* ACQUISITIONS - Recent acquisitions contributed 250 basis points to year-over-year revenue growth

* LARGE DEAL MOMENTUM - Six large deals signed in Q3, contributing to 40% growth in large deal TCV year-to-date

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $5.42 $5.31

Revenue bln bln (19

Analysts

)

Q3 Beat $1.39 $1.30

Adjusted (20

EPS Analysts

)

Q3 EPS $0.56

Q3 16%

Adjusted

Operatin

g Margin

Q3 $866 mln

Operatin

g Income

Q3 16%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Cognizant Technology Solutions Corp ( CTSH ) is $84.00, about 19.3% above its October 28 closing price of $67.82

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)