Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Q3 2025 Earnings Presentation
18 slides from Cognizant Technology Solutions's earnings presentation, Oct 29, 2025
Slide 1: Third Quarter 2025 Financial Results and Highlights
Exhibit 99.3 Third Quarter 2025 Financial Results and Highlights October 29, 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: Q3 2025
Results Summary: Q3 2025 Revenue GAAP and Adjusted Operating Margin1 Increase of 7.4% Y/Y as reported, and an increase of 6.5% Y/Y in constant currency1,2 $5,415M 16.0% 16.0% 15.3% $5,044M 14.6% Q3 '24 Q3 '25 Q3 '24 Q3 '25 Q3 '24 Q3 '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 $5,415 $5,245 $5,044 $5,082 $5,115 $4,760 $4,850 $1.39 $1.31 $1.25 $1.23 $1.21 $1.17 $1.12 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Revenue Adjusted Diluted EPS Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Revenue Y
Slide 5: Revenue Performance: Q3 2025
Revenue Performance: Q3 2025 Segments Geography $ in millions $ in millions Health Sciences Financial Services Europe +5.9% Y/Y +6.2% Y/Y $1,604 $1,578 +7.8% Y/Y +5.1% Y/Y CC +5.4% Y/Y CC $1,042 +2.7% Y/Y CC North America1 +7.8% Y/Y and $4,028 Y/Y CC $345 Rest of World $850 +0.9% Y/Y Products Commun
Slide 6: Health Sciences
Health Sciences Revenue Q3 2025 Geography $ in millions $ in millions $1,604 $1,571 $1,551 $1,541 $1,514 $1,461 $1,416 Europe +21.1% Y/Y +14.3% Y/Y CC North America $230 +2.8% Y/Y and Y/Y CC $1,331 $43 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Rest of World +48.3% Y/Y Change in Revenue +49.7%
Slide 7: Financial Services
Financial Services Revenue Q3 2025 Geography $ in millions $ in millions $1,578 $1,547 $1,486 $1,462 Europe $1,447 $1,435 $1,385 +8.9% Y/Y $330 +4.1% Y/Y CC North America +6.4% Y/Y +6.5% Y/Y CC $1,115 Rest of World $133 (1.5%) Y/Y (0.1%) Y/Y CC Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Change
Slide 8: Products & Resources
Products & Resources Revenue Q3 2025 Geography $ in millions $ in millions $1,383 $1,295 $1,306 $1,278 Europe $1,228 +3.9% Y/Y $1,133 $1,126 (1.0%) Y/Y CC $323 North America $978 +18.1% Y/Y +18.0% Y/Y CC $82 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Rest of World (7.9%) Y/Y (6.7%) Y/Y CC Chan
Slide 9: Communications, Media & Technology
Communications, Media & Technology Revenue Q3 2025 Geography $ in millions $ in millions $841 $850 Europe $826 $816 $816 $811 (2.5%) Y/Y $804 (6.6%) Y/Y CC $159 North America +7.1% Y/Y $604 +7.0% Y/Y CC $87 Rest of World (2.2%) Y/Y Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q2 '25 +0.5% Y/Y CC Change
Slide 10: Trailing Twelve Month Bookings
Trailing Twelve Month Bookings1 $ in billions $27.8 $27.5 $27.1 $26.7 $26.2 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Trailing twelve month bookings of $27.5 billion increased 5% year-over-year and represented a book-to-bill of 1.3x Q3 2025 bookings declined 5% year-over-year 1 See “About Non-GAAP Financia
Slide 11: Employee Metrics
Employee Metrics Headcount in thousands 349.8 344.4 343.8 340.1 336.8 336.3 336.3 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Additional Employee Metrics Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Trailing 12-Month Voluntary Attrition - Tech Services 13.1% 13.6% 14.6% 15.9% 15.8% 15.2% 14
Slide 12: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Annual Quarterly $ in millions $ in millions $605 $242 Share Repurchases $1,064 $1,615 $1,194 $1,194 Acquisitions $409 $368 $463 Dividends $154 $209 $591 $600 $609 $149 $150 $155 $153 $151 FY 2023 FY 2024 Trailing 12-Months Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3
Slide 13: Full-year 2025 and Q4 2025 Guidance
Full-year 2025 and Q4 2025 Guidance1 2025 Guidance ~$21.05B to ~$21.10B Revenue 6.6% to 6.9% Y/Y or 6.0% to 6.3% Y/Y CC Adjusted Operating Margin2 ~15.7% Adjusted effective tax rate2 24% to 25% Share Count 489M Adjusted Diluted EPS2 $5.22 to $5.26 Q4 2025 Guidance ~$5.27 to ~$5.33B Revenue 3.8% to 4
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: Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Guidance Full Year 2024 2024 2024 2024 2025 2025 2025 2025(1) GAAP income from operations $ 695 $ 708 $ 738 $ 751 $ 853 $ 817 $ 866 (Gain
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, Jun 30, Sep 30, (in millions) 2024 2024 2024 2024 2025 2025 2025 Net cash provided by operating activities $ 95 $ 262 $ 847 $ 920 $ 400 $ 398 $ 1,227 Purchases o
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