Filing Flows › Cognizant Technology Solutions (CTSH) › Q1 2025
Cognizant Technology Solutions (CTSH) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 1, 2025
Cognizant Technology Solutions (CTSH) reported revenue of $5.1B for the first quarter 2025 (Q1 2025), +7% from a year earlier and +0.6% from the quarter before. Operating margin was 16.7%, net earnings $663M (13.0% of revenue).
Cognizant Technology Solutions, Q1 2025: revenue $5.1B (+8% year over year), operating margin 16.7%, net earnings $663M, operating cash flow $400M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $5.1B | +0.6% | +7% |
| Operating profit | $853M | +14% | +23% |
| Net earnings | $663M | +21% | +21% |
| Operating cash flow | $400M | -57% | +321% |
| Free cash flow | $393M | — | 25× |
What changed
Revenue was $5.1B in Q1 2025, up 7% year over year and up 1% from the previous quarter. Healthcare Segment was the largest line at 31% of revenue. Healthcare Segment added $0.15B year over year (up 11%), 44% of the total change. Communication, Media and Technology declined 3%.
Operating profit was $0.85B, a 16.7% margin (up 2.1 points year over year). Of the extra revenue versus a year earlier, 45% reached operating profit, above the 15% margin then. Total costs grew 5% against revenue growth of 7%. Net earnings were $0.66B, up 21% year over year. The effective tax rate was 24.3%.
Operating cash flow was $0.40B (up 321% year over year), 60% of net earnings. Non-cash charges added back $0.14B of depreciation and amortization and $0.04B of share-based compensation. Working capital and other items used $0.44B. After purchases of property and equipment, net ($0.01B), free cash flow as the company reports it was $0.39B.
Questions
What was Cognizant Technology Solutions' revenue in the first quarter 2025?
Cognizant Technology Solutions (CTSH) reported revenue of $5.1B for the first quarter 2025 (Q1 2025), +7% from a year earlier and +0.6% from the quarter before.
Was Cognizant Technology Solutions profitable in the first quarter 2025?
Operating profit was $853M (16.7% of revenue) and net earnings $663M.