Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Q1 2025 Earnings Presentation
18 slides from Cognizant Technology Solutions's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Financial Results and Highlights
Exhibit 99.3 First Quarter 2025 Financial Results and Highlights April 30, 2025 © 2025 Cognizant
Slide 2: Forward-looking statements
Forward-looking statements This earnings supplement includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumpt
Slide 3: Results Summary: Q1 2025
Results Summary: Q1 2025 Revenue GAAP and Adjusted Operating Margin1 Increase of 7.5% Y/Y as reported, and an increase of 8.2% Y/Y in constant currency1,2 16.7% $5,115M 15.1% 15.5% 14.6% $4,760M Q1 '24 Q1 '25 Q1 '24 Q1 '25 Q1 '24 Q1 '25 GAAP Operating Margin Adjusted Operating Margin1 Diluted Earnin
Slide 4: Revenue, Operating Margin and EPS
Revenue, Operating Margin and EPS $ in millions except per share amounts $5,044 $5,082 $5,115 $4,850 $4,760 $1.25 $1.23 $1.21 $1.17 $1.12 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Revenue Adjusted Diluted EPS Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Revenue Y/Y (1.1%) (0.7%) 3.0% 6.8% 7.5% Revenue Y/Y CC (1.2%)
Slide 5: Revenue Performance: Q1 2025
Revenue Performance: Q1 2025 Segments Geography $ in millions $ in millions Health Sciences Financial Services Europe +10.9% Y/Y +5.6% Y/Y $1,571 $1,462 +1.2% Y/Y +11.4% Y/Y CC +6.5% Y/Y CC $950 +3.0% Y/Y CC North America1 +9.5% Y/Y $3,854 +9.7% Y/Y CC $311 Rest of World $804 +3.7% Y/Y Products Comm
Slide 6: Health Sciences
Health Sciences Revenue Q1 2025 Geography $ in millions $ in millions $1,571 $1,541 $1,514 $1,461 $1,416 Europe +16.8% Y/Y +19.5% Y/Y CC North America $209 +10.0% Y/Y and Y/Y CC $1,330 $32 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Rest of World +14.3% Y/Y Change in Revenue +18.4% Y/Y CC Q1 '24 Q2 '24 Q3 '2
Slide 7: Financial Services
Financial Services Revenue Q1 2025 Geography $ in millions $ in millions $1,486 $1,447 $1,462 $1,435 Europe $1,385 +2.0% Y/Y +3.7% Y/Y CC $300 North America +6.8% Y/Y +7.2% Y/Y CC $1,043 Rest of World $119 +4.4% Y/Y +7.3% Y/Y CC Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Change in Revenue Q1 '24 Q2 '24 Q3 '
Slide 8: Products & Resources
Products & Resources Revenue Q1 2025 Geography $ in millions $ in millions $1,295 $1,278 $1,228 Europe $1,133 $1,126 +5.1% Y/Y +7.1% Y/Y CC $290 North America $911 +17.9% Y/Y +18.1% Y/Y CC $77 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Rest of World (8.3%) Y/Y (5.8%) Y/Y CC Change in Revenue Q1 '24 Q2 '24 Q
Slide 9: Communications, Media & Technology
Communications, Media & Technology Revenue Q1 2025 Geography $ in millions $ in millions $826 $816 $816 $811 $804 Europe (20.5%) Y/Y (19.4%) Y/Y CC $151 North America +1.4% Y/Y $570 +1.5% Y/Y CC $83 Rest of World +12.2% Y/Y Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 +17.1% Y/Y CC Change in Revenue Q1 '24 Q2
Slide 10: Trailing Twelve Month Bookings
Trailing Twelve Month Bookings1 $ in billions $27.1 $26.7 $26.2 $26.2 $25.9 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Trailing twelve month bookings of $26.7 billion increased 3% year-over-year and represented a book-to-bill of 1.3x Q1 2025 bookings decreased 7% year-over-year 1 See “About Non-GAAP Financi
Slide 11: Employee Metrics
Employee Metrics Headcount in thousands 344.4 336.3 340.1 336.8 336.3 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Additional Employee Metrics Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Trailing 12-Month Voluntary Attrition - Tech Services 13.1% 13.6% 14.6% 15.9% 15.8% Utilization Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 B
Slide 12: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Annual Quarterly $ in millions $ in millions $605 $242 $681 Share Repurchases $1,064 $1,615 $1,194 $1,194 Acquisitions $133 $409 $421 Dividends $76 $154 $209 $591 $600 $604 $151 $150 $149 $150 $155 FY 2023 FY 2024 Trailing 12-Months Q1 '24 Q2 '24 Q3 '24
Slide 13: Full-year 2025 and Q2 2025 Guidance
Full-year 2025 and Q2 2025 Guidance1 2025 Guidance ~$20.5 to ~$21.0B Revenue 3.9% to 6.4% Y/Y or 3.5% to 6.0% Y/Y CC Adjusted Operating Margin2 15.5% to 15.7% Adjusted effective tax rate2 24% to 25% Share Count 491M Adjusted Diluted EPS2 $4.98 to $5.14 Q2 2025 Guidance ~$5.14 to ~$5.21B Revenue 5.9%
Slide 14: APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
Slide 15: About Non-GAAP Financial Measures and Performance Metrics
About Non-GAAP Financial Measures and Performance Metrics Non-GAAP Financial Measures To supplement our financial results presented in accordance with GAAP, this earnings supplement includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial
Slide 16: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures (in millions, except per share amounts) Three Months Ended: Guidance Full Year Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 2025(1) GAAP income from operations $ 695 $ 708 $ 738 $ 751 $ 853 (a) (Gain) on sale of property and equipmen
Slide 17: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Notes: (a) During the three months ended March 31, 2025, we realized a gain of $62 million on the sale of an office complex in India, which was reported in "(Gain) on sale of property and equipment" on our unaudited consolidated statement of operations.
Slide 18: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Reconciliation of free cash flow Three Months Ended Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, (in millions) 2024 2024 2024 2024 2025 Net cash provided by operating activities $ 95 $ 262 $ 847 $ 920 $ 400 Purchases of property and equipment (79) (79) (56)
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