Cognizant Technology Solutions Corp. - Ordinary Shares - Class A
CTSH
Market Cap$37.2B
Close$
Earnings Call Q1 2025
April 30, 2025 - AI Summary
Strong Q1 Performance: Cognizant reported revenue of $5.1 billion for Q1 2025, a year-over-year growth of 8.2% in constant currency driven by acquisitions like Belcan and strong organic growth, primarily in Health Sciences (up 11%) and Financial Services (up 6.5%). Adjusted operating margin improved by 40 basis points to 15.5%, and adjusted EPS increased 10% year-over-year.
Forward-Looking Guidance: For Q2 2025, Cognizant anticipates revenue growth of 5% to 6.5% year-over-year. For the full year 2025, revenue is expected to grow between 3.5% to 6% in constant currency, benefiting from a relatively strong backlog and a projected inorganic uplift of over 250 basis points due to acquisitions.
Challenges from Economic Conditions: There was an observed slowdown in client decision-making and discretionary spending starting in April, particularly within the health sciences and products and resources segments. This potentially indicates increased caution among clients amid a changing macroeconomic environment, though the impact was described as isolated so far.
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$100.03
32.5% upside
Current Fair Value
32.5% upsideUndervalued by 32.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $37.20 Billion |
|---|---|
| Enterprise Value | $36.34 Billion |
| Dividend Yield | $1.22 (1.61653637206837%) |
| Earnings per Share | $4.52 |
| Beta | 0.98 |
| Outstanding Shares | 494,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 15.82 |
|---|---|
| PEG | 73.82 |
| Price to Sales | 1.89 |
| Price to Book Ratio | 2.52 |
| Enterprise Value to Revenue | 1.81 |
| Enterprise Value to EBIT | 15.84 |
| Enterprise Value to Net Income | 10 |
| Total Debt to Enterprise | 0.03 |
| Debt to Equity | 0.08 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Cognizant Technology Solutions Corp.
289,500 employees
CEO: Francisco D'Souza Cognizant is one of the world's leading professional services companies, transforming clients' business, operating, and technology models for the digital era. Its unique industry-based, consultative approach helps clients envision, build...