Cognizant Technology Solutions Corp (NASDAQ:CTSH) reported strong Q4 2024 revenue growth of 6.7% year over year, reaching $5.1 billion, with full-year revenue increasing 1.9% to $19.7 billion. Health Sciences revenue grew over 10%, while Financial Services revenue increased by approximately 3%. Adjusted operating margin for Q4 was 15.7%, with a full-year margin of 15.3%. Free cash flow for Q4 was $837 million, with $1.8 billion for the year. Bookings grew by 11% year over year in Q4, and the company returned $1.2 billion to shareholders in 2024 through share repurchases and dividends. For 2025, EPS guidance is $4.90 to $5.06, representing 3% to 7% growth, with expected revenue growth of 2.6% to 5.1% or 3.5% to 6% in constant currency and adjusted operating margins of 15.5% to 15.7%.
Despite successful large deal signings and improved organic growth, Cognizant faced challenges in smaller deals and margin pressures in certain segments due to acquisitions and increased compensation costs. The company continues to invest in AI capabilities, with a focus on enhancing productivity and innovation to drive digital transformation. Looking ahead, the company is optimistic about its momentum in large deals and growth potential across industries, with a strong focus on talent management to support future growth. For more information, refer to the full earnings call transcript on GuruFocus.
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