Cognizant Q4 revenue slightly beats expectations, EPS exceeds

Overview

• Professional services firm's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company plans to return $1.6 bln to shareholders in 2026

Outlook

• Company expects 2026 revenue growth of 4.9% to 7.4%

• Cognizant forecasts 2026 adjusted EPS of $5.56 to $5.70

• Company plans to return $1.6 bln to shareholders in 2026

Result Drivers

• AI INVESTMENTS - CEO Ravi Kumar S highlighted investments in AI platforms and partnerships as key to signing 28 large deals in 2025

• ACQUISITION IMPACT - Acquisition of Belcan added approximately 260 basis points to full-year revenue growth

• BOOKINGS GROWTH - Fourth quarter bookings increased 9% year-over-year, driven by large deals including two mega deals

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 16 "hold" and 1 "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 is $90.00, about 20.8% above its February 3 closing price of $74.50

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn6h9h85a

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