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Thank you. I would now like to turn the conference over to Mr. Tyler Scott, senior vice president, investor relations. Thank you, please. Go ahead, sir.
Thank you, operator and good morning everyone. Welcome to cognizance fourth quarter and full year 2025 earnings call. I am joined today by Robbie Kumar our CEO and Johnson Dalal our CFO.
Tyler Scott: Thank you, operator, and good morning, everyone. Welcome to Cognizant's Q4 and full year 2025 earnings call. I am joined today by Ravi Kumar, our CEO, and Jatin Dalal, our CFO. By now, you should have received a copy of the earnings release and the investor supplement. If you have not, copies are available on our website, cognizant.com. Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties as described in the company's earnings release and other filings with the SEC. Additionally, during our call today, we will reference certain non-GAAP financial measures that we believe provide useful information for our investors.
Tyler Scott: Thank you, operator, and good morning, everyone. Welcome to Cognizant's Q4 and full year 2025 earnings call. I am joined today by Ravi Kumar, our CEO, and Jatin Dalal, our CFO. By now, you should have received a copy of the earnings release and the investor supplement. If you have not, copies are available on our website, cognizant.com. Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties as described in the company's earnings release and other filings with the SEC. Additionally, during our call today, we will reference certain non-GAAP financial measures that we believe provide useful information for our investors.
By now you should have received a copy of the earnings release and the investor supplement. If you have not copies are available on our website cognizant.com.
Speaker #2: you have Before we begin , I would like to remind you that some of the comments made on today's call and some of the your responses to questions contain may forward looking statements .
Before we begin I would like to remind you that some of the comments made on today's call and some of the responses to your questions. May contain forward-looking statements, these statements are subject to the risk and uncertainties as described in the company's earnings release and other filings with the SEC. Additionally, during our call today, we today we will reference certain non-gaap Financial measures that we believe provide useful information for our investors, reconciliations of non-gaap financial. Measures were appropriate to the corresponding Gap. Measures can be found in the company's earnings release and other filings with the SEC.
With that, over to you Robbie.
Tyler Scott: Reconciliations of non-GAAP financial measures, where appropriate to the corresponding GAAP measures, can be found in the company's earnings release and other filings with the SEC. With that, over to you, Ravi.
Tyler Scott: Reconciliations of non-GAAP financial measures, where appropriate to the corresponding GAAP measures, can be found in the company's earnings release and other filings with the SEC. With that, over to you, Ravi.
Thank you, Tyler. Good morning everyone. Thank you for joining us today. I'm pleased to report a momentum continued with the fourth quarter, as Revenue growth and adjusted operating margin again. Outpaced our expectations
Ravi Kumar: Thank you, Tyler. Good morning, everyone. Thank you for joining us today. I'm pleased to report our momentum continued in the fourth quarter as revenue growth and adjusted operating margin again outpaced our expectations. Looking at the quarter's highlights, revenue grew 3.8% year-over-year in constant currency, all organic, driven by North America. By segment, financial services led growth, with constant currency revenue increasing 9% year-over-year during the quarter and 7% for the year, the highest annual level since 2016. Q4 bookings grew 9% year-over-year, driving a record quarterly total contract value. We signed 12 large deals with TCV of $100 million or greater, including one deal valued at more than $1 billion. The value of these large deal wins is 60% greater than a year ago.
Ravi Kumar: Thank you, Tyler. Good morning, everyone. Thank you for joining us today. I'm pleased to report our momentum continued in the fourth quarter as revenue growth and adjusted operating margin again outpaced our expectations. Looking at the quarter's highlights, revenue grew 3.8% year-over-year in constant currency, all organic, driven by North America. By segment, financial services led growth, with constant currency revenue increasing 9% year-over-year during the quarter and 7% for the year, the highest annual level since 2016. Q4 bookings grew 9% year-over-year, driving a record quarterly total contract value. We signed 12 large deals with TCV of $100 million or greater, including one deal valued at more than $1 billion. The value of these large deal wins is 60% greater than a year ago.
Looking at The Quarters, highlights Revenue, grew 3.8% year-over-year in constant currency all organic driven by North America.
By segment Financial Services. LED growth with constant, currency, Revenue, increasing 9%, year-over-year during the quarter, and 7% for the year, the highest annual level since 2016,
Q4 bookings, grew 9% year on year. Driving a record, quarterly total contract value.
We signed 12 large deals with tcv of 100 million or greater including 1 deal valued at more than 1 billion.
Speaker #3: quarter highest annual 7% for the level The 2016 . since Q4 grew bookings 9% year on year , driving a quarterly record total contract value .
The value of this large deal wins is 60% greater than a year ago.
Ravi Kumar: Adjusted operating margin of 16% improved by 30 basis points year over year. We now have over 4,000 AI engagements across all three vectors, and over 30% of our developer effort in software development cycles is AI-assisted and agentic. Our productivity improved, as fixed bid and transaction-based work now represent more than 50% of our revenue. We also saw a 5% and 8% increase in trailing twelve-month revenues and adjusted operating income per employee, respectively. These results drove 2025 revenues up 6.4% in constant currency, surpassing the $20 billion mark and the high end of our guidance range. Importantly, we delivered profitable growth. Our 15.8% adjusted operating margin exceeded guidance, rising 50 basis points over last year.
Ravi Kumar: Adjusted operating margin of 16% improved by 30 basis points year over year. We now have over 4,000 AI engagements across all three vectors, and over 30% of our developer effort in software development cycles is AI-assisted and agentic. Our productivity improved, as fixed bid and transaction-based work now represent more than 50% of our revenue. We also saw a 5% and 8% increase in trailing twelve-month revenues and adjusted operating income per employee, respectively. These results drove 2025 revenues up 6.4% in constant currency, surpassing the $20 billion mark and the high end of our guidance range. Importantly, we delivered profitable growth. Our 15.8% adjusted operating margin exceeded guidance, rising 50 basis points over last year.
Adjusted operating margin of 16% improved by 30 basis points year-over-year. We now have over 4,000 AI engagements across all 3 vectors and over 30% of our developer effort in software development. Cycles is AI, assisted and agentic.
And the productivity improved has fixed bed and transaction based work. Now, represent more than 50% of our Revenue. We also saw a 5% and a 8% increase in trailing 12-month revenues and adjusted operating income per employee respectively.
These results drove 2025 revenues up 6.4% in constant currency surpassing the 20 billion Mark and the high end of our guidance range.
Importantly, we delivered profitable growth, our 15.8% adjusted operating margin, exceeded guidance Rising 50 basis points over last year, we achieved this result while investing in our people, including through a merit cycle, for most Associates and our highest discretion.
Level since 2018.
my third and
Ravi Kumar: We achieved this result while investing in our people, including through a merit cycle for most associates at our highest discretionary annual bonus funding level since 2018. January marked my third anniversary as Cognizant CEO. When we began this journey in early 2023, we set out to reclaim our winning heritage. In 2024, we successfully pivoted from stabilization to growth, industrialized our large deal engine, and expanded our platform strategy with AI-led investments to broaden our capabilities. In early 2025, we laid out our strategic objectives to amplify talent, scale innovation, and accelerate growth. We also set a goal to reach our industry's winner's circle by 2027, and I'm extremely proud that we arrived 2 years early with top-tier revenue growth.
Ravi Kumar: We achieved this result while investing in our people, including through a merit cycle for most associates at our highest discretionary annual bonus funding level since 2018. January marked my third anniversary as Cognizant CEO. When we began this journey in early 2023, we set out to reclaim our winning heritage. In 2024, we successfully pivoted from stabilization to growth, industrialized our large deal engine, and expanded our platform strategy with AI-led investments to broaden our capabilities. In early 2025, we laid out our strategic objectives to amplify talent, scale innovation, and accelerate growth. We also set a goal to reach our industry's winner's circle by 2027, and I'm extremely proud that we arrived 2 years early with top-tier revenue growth.
Speaker #3: 15.8% adjusted Our operating range margin guidance , rising 50 basis points over exceeded year . We last achieved We people , including through a merit cycle .
CEO, when we began this journey in early 2023, we set out to reclaim Our Winning heritage
In 2024 we successfully pivoted from stabilization to growth. Industrialized, a large deal engine and expanded. Our platform strategy with AI LED Investments to broaden our capabilities.
In early 2025.
Strategic objectives to amplify Talent.
Scare Innovation and accelerate growth.
We also set a goal to reach out.
Speaker #3: pivoted from winning stabilization growth we , industrialized our large to engine , and expanded our platform with deal AI to broaden our investments strategy capabilities .
Industries, Winners, Circle by 2027 and I'm extremely proud that we arrived 2 years early with top tier Revenue growth.
Speaker #3: circle by 2027 , and I'm extremely proud that we arrived two years early with top tier revenue throughout 2025 . We with speed and goal to discipline , consistently or meeting beating the high growth end of our expectations each quarter .
Ravi Kumar: Throughout 2025, we executed with speed and discipline, consistently meeting or beating the high end of our expectations each quarter as our investments began shaping Cognizant into an AI builder, capable of scaling agentic AI across our clients' landscapes. Looking at additional milestones that demonstrate our successful execution on our three strategic priorities. In 2025, we promoted more than 35,000 associates. We signed 28 deals, each with TCV above $100 million, with a combined TCV up nearly 50% versus last year. This includes 5 mega deals with TCV of $500 million or greater. Our net promoter scores reached a record high in 2025 from when I started three years ago. We expanded the breadth and depth of our partnerships across the hyperscaler and AI-native landscapes.
Ravi Kumar: Throughout 2025, we executed with speed and discipline, consistently meeting or beating the high end of our expectations each quarter as our investments began shaping Cognizant into an AI builder, capable of scaling agentic AI across our clients' landscapes. Looking at additional milestones that demonstrate our successful execution on our three strategic priorities. In 2025, we promoted more than 35,000 associates. We signed 28 deals, each with TCV above $100 million, with a combined TCV up nearly 50% versus last year. This includes 5 mega deals with TCV of $500 million or greater. Our net promoter scores reached a record high in 2025 from when I started three years ago. We expanded the breadth and depth of our partnerships across the hyperscaler and AI-native landscapes.
Throughout 2025, we executed with speed and discipline consistently meeting or beating the high end of our expectations, each quarter, as our investments began shaping cognizant into an AI Builder capable of scaling, agentic AI across our client's landscapes.
Looking at additional Milestones that demonstrate a successful execution on a 3.
Speaker #3: As our investments began shaping cognizant into an AI builder capable of Agentic AI across our clients landscapes , looking additional at scaling demonstrate a successful execution milestones that on our three strategic promoted more than 35,000 associates .
Strategic priorities in 2025, we promoted more than 35,000 Associates. We signed 28 deals each with tcv above 100 million dollars with a combined, tcv up nearly 50% versus last year. This includes 5 Mega deals with tcv or 500 million or greater.
in 2025 from when I started 3 years ago,
Speaker #3: We 2025 , we signed priorities in each with 28 deals TCV above combined $100 million with a up TCV nearly 50% versus last year .
Speaker #3: This includes five mega deals with TCV of Net 500 million or greater scores Promoter reached a . Our high in record I started three years ago expanded breadth and the depth of our partnerships .
Ravi Kumar: We signed and have since closed our acquisition of 3Cloud, adding more than 1,200 Azure specialists and engineers to industrialize our deep expertise in Azure, data, and AI, and application innovation. We returned $2 billion to shareholders through dividends and share repurchases. Our progress is reflected in our total shareholder return, which was top two within our peer group in both 2025 and the three-year period beginning 2023 through 2025. Finally, with Belcan, we completed key integration milestones and continued to build a healthy synergy pipeline in the aerospace and defense industries. Last week, we announced Belcan secured a position on the Missile Defense Agency's Shield program. The indefinite delivery, indefinite quantity contract with a ceiling value of $150 billion positions us to compete for a broad range of task orders supporting innovative defense capabilities.
Ravi Kumar: We signed and have since closed our acquisition of 3Cloud, adding more than 1,200 Azure specialists and engineers to industrialize our deep expertise in Azure, data, and AI, and application innovation. We returned $2 billion to shareholders through dividends and share repurchases. Our progress is reflected in our total shareholder return, which was top two within our peer group in both 2025 and the three-year period beginning 2023 through 2025. Finally, with Belcan, we completed key integration milestones and continued to build a healthy synergy pipeline in the aerospace and defense industries. Last week, we announced Belcan secured a position on the Missile Defense Agency's Shield program. The indefinite delivery, indefinite quantity contract with a ceiling value of $150 billion positions us to compete for a broad range of task orders supporting innovative defense capabilities.
We expanded the breadth and depth of our Partnerships across the hyperscaler and AI native Landscapes, we signed and have since closed, our acquisition of 3 Cloud, adding more than 1,200 Azure Specialists and Engineers to industrialize. Our deep expertise in Azure data and Ai and application Innovation, we returned, 2 billion dollars to shareholders through, dividends and share repurchases.
Speaker #3: across the Hyperscaler and AI native landscapes . We signed and since have acquisition of three cloud , adding 1200 Azure specialists closed our and engineers to industrialize our deep expertise in Azure Data and AI application and We returned $2 billion to shareholders through dividends and share repurchases .
Our progress is reflected in our total shareholder return, which was top 2 within a peer group in both 2025. And the 3 year period beginning 2023 through 2025
Speaker #3: innovation . is progress more than total shareholder in our return , which was top two within our peer group . In both 2025 and the three year period beginning 2023 through 2025 .
Finally, with belcan we completed key integration milestones and continue to build a healthy Synergy pipeline in the Aerospace and defense Industries.
Speaker #3: Finally , with Belcan , we completed key integration milestones continued to and build a healthy synergy pipeline in the aerospace and defense industries week , announced we .
Last week, we announced belcan secured a position on the missile. Defense agencies Shield program, the indefinite delivery indefinite quantity, contract with the sealing value of 150 billion dollars positions us to compete for a broad range of task orders supporting Innovative defense capabilities.
Speaker #3: Belcan position on the missile Agency's Shield secured a program . The indefinite delivery quantity contract with ceiling value of positions us to compete $150 billion , of range orders task supporting defense innovative capabilities broad .
As we enter 2026, our strategy is focused on solving the AI velocity Gap.
The gap between massive AI infrastructure spending in the past few years and business value realization for our clients.
Ravi Kumar: As we enter 2026, our strategy is focused on solving the AI velocity gap, the gap between massive AI infrastructure spending in the past few years and business value realization for our clients. While AI technology is now mature enough to offer transformative value, the methodologies and tools to harness it are only just emerging, and the value to enterprises hasn't drifted yet. In fact, our latest New Work New World research, released last month, reveals that AI today is capable of unlocking $4.5 trillion in US labor value in the future. Cognizant's mission is to be the AI builder, bridging this gap to enterprise value by converting the technology to measurable returns on investments for our clients. We are approaching this opportunity through our three-vector strategy.
Ravi Kumar: As we enter 2026, our strategy is focused on solving the AI velocity gap, the gap between massive AI infrastructure spending in the past few years and business value realization for our clients. While AI technology is now mature enough to offer transformative value, the methodologies and tools to harness it are only just emerging, and the value to enterprises hasn't drifted yet. In fact, our latest New Work New World research, released last month, reveals that AI today is capable of unlocking $4.5 trillion in US labor value in the future. Cognizant's mission is to be the AI builder, bridging this gap to enterprise value by converting the technology to measurable returns on investments for our clients. We are approaching this opportunity through our three-vector strategy.
Speaker #3: As we enter 2026 , our solving the AI focused on velocity gap strategy is between massive AI infrastructure spending in the past few , the gap value years and realization for our business clients .
While AI technology is now mature enough to offer transformative value, the methodologies and tools to harness. It are only just emerging and the value to Enterprises hasn't drifted yet.
In fact.
Our latest new work, new world research released last month. Reveals that AI. Today is capable of unlocking 4.5 trillion dollars in US Labor value in the future.
Speaker #3: AI technology mature enough to offer transformative value , is now methodologies and tools to harness it are emerging . And the value to only just enterprises hasn't yet .
Cognizance mission is to be the AI Builder. Bridging this Gap, to Enterprise Value by converting the technology to measurable Returns on investments for our clients.
Speaker #3: fact , our latest new work , New drifted released last month , reveals that today is capable AI unlocking of $4.5 trillion in US labor value in the future .
Speaker #3: mission is to be the AI builder , this gap bridging enterprise value to by converting the technology to returns on investments measurable clients approaching this opportunity are .
We are approaching this opportunity through our 3 Vector strategy to capture Vector 1 demand. As we call it, we're applying AI lead productivity to augment and accelerate traditional software Cycles.
Ravi Kumar: To capture vector one demand, as we call it, we're applying AI-led productivity to augment and accelerate traditional software cycles. As we shared at our Investor Day, we see a massive multi-trillion-dollar opportunity to help clients accelerate the elimination of technical debt, build classical software in newer ways with AI platforms, and repurpose savings towards innovation. To capture what we call vector two and three, we are building entirely new cycles of agentic capital and digital labor that goes beyond the reach of legacy software, creating a much larger total addressable spend. Closing this velocity gap, the AI Velocity Gap, requires new methodologies and evolving beyond the traditional IT services role of the last two decades. In the 1990s, we were bespoke systems builders. We wrote custom software code, and we owned the outcomes. In the two decades that followed, our role evolved into a system integrator.
Ravi Kumar: To capture vector one demand, as we call it, we're applying AI-led productivity to augment and accelerate traditional software cycles. As we shared at our Investor Day, we see a massive multi-trillion-dollar opportunity to help clients accelerate the elimination of technical debt, build classical software in newer ways with AI platforms, and repurpose savings towards innovation. To capture what we call vector two and three, we are building entirely new cycles of agentic capital and digital labor that goes beyond the reach of legacy software, creating a much larger total addressable spend. Closing this velocity gap, the AI Velocity Gap, requires new methodologies and evolving beyond the traditional IT services role of the last two decades. In the 1990s, we were bespoke systems builders. We wrote custom software code, and we owned the outcomes. In the two decades that followed, our role evolved into a system integrator.
Speaker #3: our three vector strategy to capture vector one demand , as through We are we call applying AI led augment and accelerate it . traditional .
As we shared at our investor day, we see a massive multi-trillion dollars opportunity to help clients accelerate. The elimination of Technology debt, build classical software in newer ways with AI platforms and repurpose savings towards innovation.
Speaker #3: shared at our cycles Investor Day , we see a software multi-trillion dollar help clients opportunity to accelerate the elimination of technology , debt , classical software in newer ways with AI platforms , and build savings to innovation and to what we call vector We repurpose are building capture entirely new two and three .
And to capture what we call Vector, 2, and 3, we are building entirely new cycles of agentic capital and digital labor. That goes beyond the reach of Legacy software creating a much larger total addressable spend
Closing this velocity Gap. The AI velocity, gaap requires new methodologies, and evolving beyond the traditional. IT services role of the last 2 decades.
In the 90s, we were bespoke systems Builders. We wrote custom software code and we owned the outcomes.
Closing this velocity Gap. The AI velocity, gaap requires new methodologies, and evolving beyond the traditional. IT services role of the last 2 decades.
In the 2 decades that followed our role evolved into a system. Integrator, we orchestrated classical software owned by various software providers.
But classical software, which was written around, the microprocessor was deterministic and built on Rigid logic and fixed rules.
In the 1990s, we were bespoke systems builders. We wrote custom software code and we owned the outcomes.
Ravi Kumar: We orchestrated classical software owned by various software providers.... But classical software, which was written around the microprocessor, was deterministic and built on rigid logic and fixed rules. Today's AI-led software, which is written around the frontier models, is probabilistic and contextual. This shift allows us to own this stack again and deliver to outcomes. We believe reinvention and reimagination of businesses will be driven by value at the intersection of AI-led agentic capital and classical software. To capture this demand, our AI builder stack acts as the connective, connective tissue that addresses four layers of the ecosystem: AI compute, cloud, model access, and human capital services. Let me share some key elements. First is our trademarked BASIS framework, a proprietary blueprint that guides clients in architecting new business processes, specifically for deploying and orchestrating autonomous agents.
Ravi Kumar: We orchestrated classical software owned by various software providers.... But classical software, which was written around the microprocessor, was deterministic and built on rigid logic and fixed rules. Today's AI-led software, which is written around the frontier models, is probabilistic and contextual. This shift allows us to own this stack again and deliver to outcomes. We believe reinvention and reimagination of businesses will be driven by value at the intersection of AI-led agentic capital and classical software. To capture this demand, our AI builder stack acts as the connective, connective tissue that addresses four layers of the ecosystem: AI compute, cloud, model access, and human capital services. Let me share some key elements. First is our trademarked BASIS framework, a proprietary blueprint that guides clients in architecting new business processes, specifically for deploying and orchestrating autonomous agents.
Today's AI LED software, which is written around. The frontier models, is probabilistic and contextual
In the 2 decades that followed our role evolved into a system. Integrator, we orchestrated classical software owned by various software providers.
But classical software, which was written around, the microprocessor was deterministic and built on Rigid logic and fixed rules.
This shift allows us to own the stack again and deliver to outcomes. We believe reinvention and re-imagination of businesses will be driven by value at the intersection of AI lead, agentic capital and classical software.
Software, which is written around. The frontier models, is probabilistic and contextual
To capture this demand, our AI Builder stack acts as the connective connective tissue that addresses 4 layers of the ecosystem AI compute Cloud Model access and human Capital Services.
Let me share some key elements.
This shift allows us to own the stack again and deliver to outcomes. We believe reinvention and reimagination of businesses will be driven by value at the intersection of AI lead agentic capital and classical software.
First is our trademarked basis framework, our proprietary blueprint. That guides clients in architecting, new business processes.
To capture this demand, our AI Builder stack acts as the connective connective tissue that addresses 4 layers of the ecosystem AI compute Cloud Model access and human Capital Services.
Let me share some key elements.
Specifically for deploying and orchestrating autonomous agents. This is a fundamental shift from riding rigid logic to designing Behavior, Persona intent and outcomes.
Ravi Kumar: This is a fundamental shift from writing rigid logic to designing behavior, persona, intent, and outcomes. Second is our pioneering science of context engineering, a methodology for mapping a client's unique work graph, giving AI the situational awareness it needs to produce reliable business outcomes. Context engineering bundles an organization's operating principles, tribal knowledge, work patterns, friction sources, and historical and cultural imperatives, so that AI intelligently binds to the enterprise's heterogeneous context, creating highly productive agentic capital. Third is our AI partnership ecosystem, which we continue to strengthen. On NVIDIA Stack, we are offering solutions across the full life cycle, from building and fine-tuning models, to standing up agentic applications and deploying them as microservices. With Anthropic, Google Cloud, Microsoft Azure, and OpenAI, we are using their frontier models and agentic tuning to build layers of application value to accelerate AI adoption for our clients.
Ravi Kumar: This is a fundamental shift from writing rigid logic to designing behavior, persona, intent, and outcomes. Second is our pioneering science of context engineering, a methodology for mapping a client's unique work graph, giving AI the situational awareness it needs to produce reliable business outcomes. Context engineering bundles an organization's operating principles, tribal knowledge, work patterns, friction sources, and historical and cultural imperatives, so that AI intelligently binds to the enterprise's heterogeneous context, creating highly productive agentic capital. Third is our AI partnership ecosystem, which we continue to strengthen. On NVIDIA Stack, we are offering solutions across the full life cycle, from building and fine-tuning models, to standing up agentic applications and deploying them as microservices. With Anthropic, Google Cloud, Microsoft Azure, and OpenAI, we are using their frontier models and agentic tuning to build layers of application value to accelerate AI adoption for our clients.
First is our trademarked basis framework, a proprietary blueprint. That guides clients in architecting, new business processes, specifically for deploying and orchestrating autonomous agents. This is a fundamental shift from riding rigid logic to designing Behavior, Persona intent and outcomes.
Second is our pioneering science of Context, Engineering.
A methodology for mapping.
Second is our pioneering science of Context, Engineering a methodology for mapping your client's unique work, graph, giving AI the situational awareness. It needs to produce reliable business, outcomes Context, Engineering bundles, and organizations, operating principles tribal, knowledge work patterns, friction, sources, and historical, and cultural imperatives, so that AI intelligently binds to the Enterprises heterogeneous context.
Creating highly productive, agentic capital.
Third is our AI partnership ecosystem, which we continue to strengthen.
Finds unique work graphs, giving AI the situational awareness. It needs to produce reliable business, outcomes Context, Engineering bundles, and organizations, operating principles tribal, knowledge work patterns, friction, sources, and historical, and cultural imperatives, so that AI intelligently binds to the Enterprises heterogeneous context.
On Nvidia stack. We are offering Solutions across the full life cycle from building and fine. Tuning models to standing up agentic applications and deploying them as a as microservices.
Creating highly productive, agentic capital.
Third is our AI partnership ecosystem, which we continue to strengthen.
On Nvidia stack, we are offering solutions across the full life cycle, from building and fine-tuning models.
With anthropic Google Cloud, Microsoft Azure and open AI. We're using their Frontier models and agentic tooling to build layers of application value to accelerate AI adoption for our clients.
To standing up agentic applications and deploying them as microservices.
Enterprise marketing function and enabling Cutting Edge customer experiences and content by moving manual, workflows to agentic orchestration.
Ravi Kumar: With Adobe and Typeface, we are modernizing the enterprise marketing function and enabling cutting-edge customer experiences and content by moving manual workflows to agentic orchestration. With Cloud Code, Cognition, GitHub, and Windsurf, we are industrializing software creation through advanced code generation. With Work Fabric, we are scaling the emerging discipline of context engineering. With Writer and Uniphore, we are partnering to deploy specialized domain-specific AI platforms. With Palantir, we will integrate its Foundry and Artificial Intelligence Platform to support the integration of AI with our TriZetto business. And finally, with Salesforce and ServiceNow, we are embedding our agentic networks directly into our clients' primary enterprise workflows. The fourth layer of our AI Builder stack is our own proprietary IP across platforms, services, and research. For example, Flowsource elevates our engineering velocity, while Neuro ITOps harnesses AI to proactively manage and self-heal hybrid environments.
Ravi Kumar: With Adobe and Typeface, we are modernizing the enterprise marketing function and enabling cutting-edge customer experiences and content by moving manual workflows to agentic orchestration. With Cloud Code, Cognition, GitHub, and Windsurf, we are industrializing software creation through advanced code generation. With Work Fabric, we are scaling the emerging discipline of context engineering. With Writer and Uniphore, we are partnering to deploy specialized domain-specific AI platforms. With Palantir, we will integrate its Foundry and Artificial Intelligence Platform to support the integration of AI with our TriZetto business. And finally, with Salesforce and ServiceNow, we are embedding our agentic networks directly into our clients' primary enterprise workflows. The fourth layer of our AI Builder stack is our own proprietary IP across platforms, services, and research. For example, Flowsource elevates our engineering velocity, while Neuro ITOps harnesses AI to proactively manage and self-heal hybrid environments.
With anthropic Google Cloud, Microsoft Azure and open AI. We're using their Frontier models and agentic tooling to build layers of application value to accelerate AI adoption for a client.
With Claude code, cognition GitHub and Vince, we are industrializing software creation through advanced code generation with work fabric. We are scaling the emerging discipline of Context Engineering
With Adobe and type face. We are modernizing the Enterprise marketing function and enabling Cutting Edge customer experiences and content by moving manual, workflows to agentic orchestration.
With Claude code, cognition GitHub and Vince, we are industrializing software creation through advanced code generation with work fabric. We are scaling the emerging discipline of Context Engineering
With writer and unifor. We are partnering to deploy specialized domain specific. AI platforms with Talent. Here we are, we will integrate its Foundry and artificial intelligence platform to support the integration of AI without business.
And finally with Salesforce and service. Now we are embedding our agentic networks directly into our clients primary Enterprise workflows.
The fourth layer of our AI Builder stack is our own proprietary IP across platform services and research.
With writer and unifor. We are partnering to deploy specialized domain specific AI platforms with pelant. We, we will integrate its Foundry and artificial intelligence platform to support the integration of AI with a business.
And finally with Salesforce and service. Now we are embedding our agentic networks directly into our clients primary Enterprise workflows.
For example, flow Source elevates, our engineering velocity, while neuro it Ops harnesses AI to proactively manage and self-heal, hybrid environments.
Our AI training data services have helped curate billions of high Precision data points for Global clients.
The fourth layer of our AI Builder stack is our own proprietary IP across platform services and research.
Ravi Kumar: Our AI training data services have helped curate billions of high-precision data points for global clients. With TriZetto, we are accelerating and improving healthcare management. Our recently launched CareAdvance AI offerings help streamline clinical workflows, reduce administrative burden, and empower care teams with faster and more accurate insights. And our award-winning AI labs, which was awarded its 61st patent, continues to feed our continued investments in AI platforms and products. To industrialize our AI builder stack, we have formed three units to sharpen our go-to-market muscle. First, our market-facing AI units are the hunters or value seekers working to capture the $4.5 trillion in labor value our research identified. Second, our integrated AI solution unit acts as an architectural core, bringing various components of the AI stack together with strategic partnerships, Cognizant methodologies, and AI platforms to address specific reinvention needs of businesses.
Ravi Kumar: Our AI training data services have helped curate billions of high-precision data points for global clients. With TriZetto, we are accelerating and improving healthcare management. Our recently launched CareAdvance AI offerings help streamline clinical workflows, reduce administrative burden, and empower care teams with faster and more accurate insights. And our award-winning AI labs, which was awarded its 61st patent, continues to feed our continued investments in AI platforms and products. To industrialize our AI builder stack, we have formed three units to sharpen our go-to-market muscle. First, our market-facing AI units are the hunters or value seekers working to capture the $4.5 trillion in labor value our research identified. Second, our integrated AI solution unit acts as an architectural core, bringing various components of the AI stack together with strategic partnerships, Cognizant methodologies, and AI platforms to address specific reinvention needs of businesses.
For example, flow Source elevates, our engineering velocity, while neuro it Ops harnesses AI to proactively manage and self-heal, hybrid environments.
With fetto we are accelerating and improving Healthcare Management. Our recently launched a care Advanced AI offerings, help streamline clinical. Workflows, reduce administrative burden and Empower care teams with faster and more accurate insights.
Our AI training data services have helped curate billions of high-precision data points for global clients.
With f, we are accelerating and improving Healthcare Management.
And our award-winning AI Labs which was awarded at 61st payment continues to feed our continued investments in AI platforms and products.
To industrialize our AI Builder stack. We have formed 3 units to sharpen our go to market muscle.
First Market facing, AI units are the hunters of value Seekers working to capture the 4.5 trillion dollars in labor, value or research identified.
Our recently launched a care Advanced AI offerings, help streamline clinical. Workflows, reduce administrative burden and Empower care teams with faster and more accurate insights. And our award-winning AI Labs which was awarded at 61st payment continues to feed our continued investments in AI platforms and products.
To industrialize our AI Builder stack. We have formed 3 units to sharpen our go to market muscle.
Second are integrated AI solution unit acts as an architectural core bringing various components of the AI stack together with strategic Partnerships Congress and methodologies and AI platforms to address specific.
Invention needs of businesses.
First, our market-facing AI units are the hunters of value seekers, working to capture the $4.5 trillion in labor, value, or research identified.
And finally, our centralized AI platforms and products, you know, it is a factory packaging customer IP into repeatable Solutions.
Underpinning. Our AI Builder stack is a talent strategy.
Second, our integrated AI solution unit acts as an architectural core bringing various components of the AI stack together with strategic Partnerships cognizant methodologies and AI platforms to address.
Ravi Kumar: Finally, our centralized AI platforms and products unit is a factory packaging custom IP into repeatable solutions. Underpinning our AI builder stack is our talent strategy. Over the last 2.5 years, over 340,000 of our associates have completed AI skilling. We are shifting from traditional linear staffing model to an asynchronous, autonomous software engineering model. In this framework, our associates are trained to delegate complex, high-value macro tasks to agentic networks while they micro-steer to outcomes using platforms like Cognition, Gemini, Cloud, GitHub, and others, orchestrating through Cognizant Flowsource. We are in the process of developing a hyper-productive, high-velocity delivery model for agents to asynchronously assist human software developers and agent managers. In addition, we are broadening our talent base with non-STEM talent and early career programs. This includes aggressively recruiting interdisciplinary skills at the intersection of industry, domain, and technology.
Ravi Kumar: Finally, our centralized AI platforms and products unit is a factory packaging custom IP into repeatable solutions. Underpinning our AI builder stack is our talent strategy. Over the last 2.5 years, over 340,000 of our associates have completed AI skilling. We are shifting from traditional linear staffing model to an asynchronous, autonomous software engineering model. In this framework, our associates are trained to delegate complex, high-value macro tasks to agentic networks while they micro-steer to outcomes using platforms like Cognition, Gemini, Cloud, GitHub, and others, orchestrating through Cognizant Flowsource. We are in the process of developing a hyper-productive, high-velocity delivery model for agents to asynchronously assist human software developers and agent managers. In addition, we are broadening our talent base with non-STEM talent and early career programs. This includes aggressively recruiting interdisciplinary skills at the intersection of industry, domain, and technology.
The specific reinvention needs of businesses.
Over the last 2 and a half years. Over 340,000 of our Associates. Have completed AI Skilling.
And finally, our centralized AI platforms and products, you know, it is a factory packaging custom IP into repeatable Solutions.
We are shifting from traditional, Linear Staffing model to an asynchronous. Autonomous software engineering model,
Underpinning. Our AI Builder stack is a talent strategy.
Over the last 2 and a half years. Over 340,000 of our Associates. Have completed AI Skilling.
We are shifting from the traditional linear staffing model to a synchronous, autonomous software engineering model.
In this framework, our Associates are trained to delegate complex, high-value macro tasks to a genetic networks while they micro steer to outcomes using platforms like cognition, Gemini Cloud GitHub and others orchestrating through cognizant flow source.
We are in the process of developing a hyper productive High Velocity delivery model for agents to a synchronously, assist human software, developers and agent managers.
In this framework, our associates are trained to delegate complex, high-value macro tasks to genetic networks, while they might steer to outcomes using platforms like Cognition, Gemini Cloud, GitHub, and others, orchestrating through Cognizant Flow Source.
We are in the process of developing a hyper-productive, high-velocity delivery model for agents to asynchronously assist human software developers and agent managers.
In addition, we are broadening our talent base with non- stem talent and early career programs. This includes aggressively recruiting interdisciplinary skills at the intersection of Industry. Domain and Technology, we added over 16,000 Associates in India in 2025 in 2026. We are targeting 2,000 campus hires in the US and approximately 20% in India.
Ravi Kumar: We added over 16,000 associates in India in 2025. In 2026, we are targeting 2,000 campus hires in the US and approximately 20,000 in India. We are seeing this AI builder strategy translate into demand across our core practices. For example, our proprietary platforms like Flowsource and Neuro Engineering are helping clients unlock technology debt, helping to fuel 8% year-over-year in both the Q4 and year in our digital engineering practices. Similarly, our clients rethink their operations through an agentic lens. Demand for our BPO business, powered by deep immersion of digital labor, grew 9% year-over-year in the quarter and the year. Our AI data training services, launched early last year, is gaining traction with our clients to build fine-tune AI models at speed and scale.
Ravi Kumar: We added over 16,000 associates in India in 2025. In 2026, we are targeting 2,000 campus hires in the US and approximately 20,000 in India. We are seeing this AI builder strategy translate into demand across our core practices. For example, our proprietary platforms like Flowsource and Neuro Engineering are helping clients unlock technology debt, helping to fuel 8% year-over-year in both the Q4 and year in our digital engineering practices. Similarly, our clients rethink their operations through an agentic lens. Demand for our BPO business, powered by deep immersion of digital labor, grew 9% year-over-year in the quarter and the year. Our AI data training services, launched early last year, is gaining traction with our clients to build fine-tune AI models at speed and scale.
We are seeing this AI Builder strategy, translate into demand across a core practices. For example, our proprietary platforms, like flow, source and neuro engineering, helping clients unlock technology debt, helping to fuel 8% year-over-year in both the fourth quarter and year in our digital engineering practices.
Similarly, our clients rethink their operations, through an agentic lens, demand for our BPO business, powered by Deep immersion of digital labor, grew 9% year-over-year in the quarter in the year.
We are seeing this AI Builder strategy, translate into demand across a core practices. For example, our proprietary platforms like flow source, and neuroengineering helping clients unlock technology debt, helping to fuel 8% year-over-year in both the fourth quarter and year in our digital engineering practices.
Our AI data Training Services launched early last year is gaining traction with a clients to build finetune, AI models at speed and scale.
Similarly, our clients rethink their operations, through an agentic lens, demand for our BPO business, powered by Deep immersion of digital labor, grew 9% year-over-year in the quarter in the year.
And demand for data. And Cloud modernization remains healthy with Revenue across both practices areas, growing mid, single digits organically outpacing. Total company growth.
Ravi Kumar: Demand for data and cloud modernization remains healthy, with revenue across both practice areas growing mid-single digits organically, outpacing total company growth. Now, let me share a few client examples of our strategy in action. First. With a financial services client, we signed an incremental billion-dollar partnership where we are leveraging our AI platforms, including our NeuroSuite and Flowsource, to help accelerate speed to market, drive product innovation, and deliver enhanced productivity. Next, with Sysco, the global leader in food distribution, we are transforming their complex customer interaction ecosystem into agentic capital. Previously, customer requests from product credits to order substitutions could have prolonged resolution window. Now, by deploying orchestrated agents, we have collapsed that cycle to 90 seconds. Sysco is harvesting these AI-generated savings to fund its next phase of agentification. In the healthcare sector, we've moved from pilots to production-grade automation.
Ravi Kumar: Demand for data and cloud modernization remains healthy, with revenue across both practice areas growing mid-single digits organically, outpacing total company growth. Now, let me share a few client examples of our strategy in action. First. With a financial services client, we signed an incremental billion-dollar partnership where we are leveraging our AI platforms, including our NeuroSuite and Flowsource, to help accelerate speed to market, drive product innovation, and deliver enhanced productivity. Next, with Sysco, the global leader in food distribution, we are transforming their complex customer interaction ecosystem into agentic capital. Previously, customer requests from product credits to order substitutions could have prolonged resolution window. Now, by deploying orchestrated agents, we have collapsed that cycle to 90 seconds. Sysco is harvesting these AI-generated savings to fund its next phase of agentification. In the healthcare sector, we've moved from pilots to production-grade automation.
Now, let me share a few client examples of our strategy in action.
Our AI data Training Services launched early last year is gaining traction with a clients to build finetune, AI models at speed and scale.
And demand for data. And Cloud modernization remains healthy with Revenue across both practices areas, growing mid, single digits organically outpacing. Total company growth.
Now, let me share a few client examples of our strategy in action.
First.
First with a financial services client, we signed an incremental billion dollar partnership where we are leveraging. Our AI platforms, including our neuro suite and flow source, to help, accelerate speed to Market Drive product Innovation, and deliver enhanced productivity.
next with Cisco, the global leader in food distribution, we're transforming their complex customer interaction, ecosystem into agentic capital,
Previously customer requests from product.
With a financial services client, we signed an incremental $1 billion partnership, where we are leveraging our AI platforms, including our NeuroSight and Flow Source, to help accelerate speed to market, drive product innovation, and deliver enhanced productivity.
Credits to order substitutions could have prolonged resolution window.
Now we're deploying orchestrated agents. We have collapsed that cycle to 90 seconds.
next with Cisco, the global leader in food distribution, we're transforming their complex customer interaction, ecosystem into agentic capital,
Previously customer requests from product.
Cisco is harvesting this AI generated savings to fund its next phase of identification.
Credits to order substitutions could have prolonged the resolution window.
Now we're deploying orchestrated agents. We have collapsed that cycle to 90 seconds.
Automation for a major US Regional player. Our AI intake platform reduced enrollment cycle times from as many as 7 days to minutes.
Cisco is harvesting this AI generated savings to fund its next phase of Agents.
In the healthcare sector.
Ravi Kumar: For a major US regional player, our AI intake platform reduced enrollment cycle times from as many as 7 days to minutes. On their claims side, our clinical engine now adjudicates 96% of nurse note reviews autonomously, cutting human review times from 8 hours to 20 minutes. We are scaling this expertise globally through a new strategic collaboration with Bupa Hong Kong, where our GenAI-led business process as a service solution modernizes claim and fraud, waste, and abuse detection, marking our largest BPO win in the region. We announced a multi-year expansion with Kohler, a leader in kitchen and bath products. Building on our successful 5-year partnership, we are bringing our cloud management capabilities and AI solutions like Neuro ITOps to advance Kohler's digital ecosystem and drive AI-driven innovation. As we look toward 2026, we are well positioned to continue our momentum.
Ravi Kumar: For a major US regional player, our AI intake platform reduced enrollment cycle times from as many as 7 days to minutes. On their claims side, our clinical engine now adjudicates 96% of nurse note reviews autonomously, cutting human review times from 8 hours to 20 minutes. We are scaling this expertise globally through a new strategic collaboration with Bupa Hong Kong, where our GenAI-led business process as a service solution modernizes claim and fraud, waste, and abuse detection, marking our largest BPO win in the region. We announced a multi-year expansion with Kohler, a leader in kitchen and bath products. Building on our successful 5-year partnership, we are bringing our cloud management capabilities and AI solutions like Neuro ITOps to advance Kohler's digital ecosystem and drive AI-driven innovation. As we look toward 2026, we are well positioned to continue our momentum.
On their claim side are clinical engineer now. Adjudicates 96% of nurse note reviews, autonomously cutting human review times from 8 hours to 20 minutes.
From Pilots to production grade automation for a major US Regional player. Our AI intake platform reduced enrollment cycle times from as many as 7 days to minutes.
On their claims side are clinical engineer now. Adjudicates 96% of nurse note reviews, autonomously cutting human review times from 8 hours to 20 minutes.
We're scaling this expertise globally through a new strategic collaboration, with Bupa Hong Kong. Where are gen? AI LED business. Processes service solution, modernizes claim and fraud, waste and abuse detection marking our largest BPO win in the region.
And we announced a multi-year expansion, with cooler, a leader in kitchen, and bath products.
We're scaling this expertise globally through a new strategic collaboration, with Bupa, Hong Kong where our gen AI LED business. Processes service solution, modernizes claim and fud waste and abuse detection. Marking our largest BPO win in the region.
Building on our successful 5-year partnership. We are bringing our Cloud management capabilities and AI Solutions. Like neuro IDE apps to Advanced callers digital ecosystem and drive ai-driven Innovations.
And we announced a multi-year expansion, with cooler, a leader in kitchen, and bath products.
As we look towards 2026, we are well positioned to continue our momentum. Our ambition is to lead as an AI Builder and maintain our position in our Industries Winners Circle.
Building on our successful 5-year partnership. We are bringing our Cloud management capabilities and AI Solutions, like neuro-id Ops to Advanced callers digital ecosystem and drive ai-driven Innovations.
In closing I'm proud of all that we have accomplished over the last 3 years which helped us reach our industry's Winners Circle. 2 years ahead of plan
Ravi Kumar: Our ambition is to lead as an AI builder and maintain our position in our industry's winner's circle. In closing, I'm proud of all that we have accomplished over the last three years, which helped us reach our industry's winner's circle two years ahead of plan. As the next decade of contextual computing unlocks new waves of nonlinear enterprise productivity and agentic software cycles, I believe there is a significant opportunity to create shared value for our clients, our associates, and our shareholders. The foundation is set. I believe the boldest chapters of our story are still ahead. Thank you again for joining us. I'll now turn the call over to Jatin.
Ravi Kumar: Our ambition is to lead as an AI builder and maintain our position in our industry's winner's circle. In closing, I'm proud of all that we have accomplished over the last three years, which helped us reach our industry's winner's circle two years ahead of plan. As the next decade of contextual computing unlocks new waves of nonlinear enterprise productivity and agentic software cycles, I believe there is a significant opportunity to create shared value for our clients, our associates, and our shareholders. The foundation is set. I believe the boldest chapters of our story are still ahead. Thank you again for joining us. I'll now turn the call over to Jatin.
As we look towards 2026, we are well positioned to continue our momentum. Our ambition is to lead as an AI Builder and maintain a position in our Industries Winners Circle.
In closing I'm proud of all that we have accomplished over the last 3 years which helped us reach our Industries Winners Circle. 2 years ahead of plan
As the next decade of contextual Computing, unlocks New Waves of nonlinear Enterprise productivity and agentic software Cycles. I believe there is a significant opportunity to create shared value for our clients that are Associates. In our shareholders, the foundation is set, I believe the boldest chapters of our story are still ahead.
Thank you again for joining us. I'll now turn the call over to jatin
Thank you, Ravi, and thank you all for joining us.
As the next decade of contextual computing unlocks new waves of nonlinear enterprise productivity and agentic software cycles, I believe there is a significant opportunity to create shared value for our clients that are associates. In our shareholders, the foundation is set.
I believe the boldest chapters of our story are still ahead.
Jatin Dalal: Thank you, Ravi, and thank you all for joining us. Our Q4 and full-year results were a significant milestone in a multi-year journey marked by disciplined execution, strategic clarity, and operational excellence. We delivered Q4 revenue growth above the high end of our guidance range and exceeded the initial full-year guidance we provided in February last year across all metrics: revenue, adjusted operating income, EPS, and free cash flow. We expect that our calendar year 2025 constant currency revenue growth will be in the top tier among the 10 peers against which we benchmark performance, placing us definitively in the winner's circle. Beyond revenue growth, we achieved each of the broader objectives we provided at our Investor Day.
Jatin Dalal: Thank you, Ravi, and thank you all for joining us. Our Q4 and full-year results were a significant milestone in a multi-year journey marked by disciplined execution, strategic clarity, and operational excellence. We delivered Q4 revenue growth above the high end of our guidance range and exceeded the initial full-year guidance we provided in February last year across all metrics: revenue, adjusted operating income, EPS, and free cash flow. We expect that our calendar year 2025 constant currency revenue growth will be in the top tier among the 10 peers against which we benchmark performance, placing us definitively in the winner's circle. Beyond revenue growth, we achieved each of the broader objectives we provided at our Investor Day.
Thank you again for joining us. I'll now turn the call over to Jatin.
Our fourth quarter and full year results were a significant milestone in a multi-year journey. Marked by disciplined execution, strategic Clarity and operational excellence.
Thank you, Ravi, and thank you all for joining us.
We delivered fourth quarter Revenue growth above the high end of our guidance range and exceeded the initial. Full year guidance, we provided in February last year across all metrics
Our fourth quarter and full-year results were a significant milestone in a multi-year journey, marked by disciplined execution, strategic clarity, and operational excellence.
Revenue, adjusted operating income Epps and free cash flow.
We delivered fourth quarter revenue growth above the high end of our guidance range and exceeded the initial full year guidance we provided in February last year across all metrics.
Revenue, adjusted operating income Epps and free cash flow.
We expect that our calendar year, 2025 constant, currency Revenue growth will be in the top tier among the 10 peers against which we Benchmark performance. Placing Us definitively in the winner circle.
Beyond Revenue growth. We achieve each of the broader objectives. We provided at our investor day.
This includes sustained. Large deal, momentum.
We expect that our calendar year, 2025 constant, currency Revenue growth will be in the top tier among the 10 peers against which we Benchmark performance. Placing a definitively in the winner circle.
Killing for the future through AI training for approximately 260,000 employees.
Jatin Dalal: This includes sustained large deal momentum, skilling for the future through AI training for approximately 260,000 employees, adjusted operating margin expansion of 50 basis points, and 2025 adjusted EPS growth of 11%, well above revenue growth. We delivered these results in a period of significant macroeconomic complexity and technological change, further bolstering our conviction in the strategic actions we have taken to become an AI builder company. We are well positioned to sustain this growth in 2026 and confident that we can build on this momentum in the years ahead. Now, moving to the details. In Q4, revenue of $5.3 billion grew 3.8% year-over-year in constant currency and was all organic.
Jatin Dalal: This includes sustained large deal momentum, skilling for the future through AI training for approximately 260,000 employees, adjusted operating margin expansion of 50 basis points, and 2025 adjusted EPS growth of 11%, well above revenue growth. We delivered these results in a period of significant macroeconomic complexity and technological change, further bolstering our conviction in the strategic actions we have taken to become an AI builder company. We are well positioned to sustain this growth in 2026 and confident that we can build on this momentum in the years ahead. Now, moving to the details. In Q4, revenue of $5.3 billion grew 3.8% year-over-year in constant currency and was all organic.
Beyond Revenue growth. We achieve each of the broader objectives. We provided at our investor day.
Adjusted operating margin expansion of 50 basis points.
this includes sustain large deal, momentum
And 2025 adjusted, EPS growth of 11% well about Revenue growth.
Killing for the future through AI training for approximately 260,000 employees.
We delivered this results in a period of significant macroeconomic complexity.
Adjusted operating margin expansion of 50 basis points.
And 2025 adjusted EPS growth of 11%, well above revenue growth.
And technological change further bolstering our conviction in the Strategic actions, we have taken to become an AI builder company.
We delivered this results in a period of significant macroeconomic complexity.
We are well positioned to sustain this growth in 2026.
And confident that we can build on this momentum in the years ahead.
Now, moving to the details.
To become an AI builder company.
We are well positioned to sustain this growth in 2026.
In Q4 revenue of 5.3 billion dollars grew 3.8%. Year-over-year in constant currency.
And was all organic.
And confident that we can build on this momentum in the years ahead.
Now, moving to the details.
For the full year, the revenue of 21.1 billion dollars grew 6.4%, in constant currency, including 260 basis points of growth from balcon.
In Q4, revenue of $5.3 billion grew 3.8% year-over-year in constant currency.
And was all organic.
Jatin Dalal: For the full year, the revenue of $21.1 billion grew 6.4% in constant currency, including 260 basis points of growth from Belcan. With respect to demand, the environment remains complex. Traditional discretionary spending cycles continue to evolve as clients rebaseline expectations for productivity gains. However, we view this as an opportunity to capture wallet share in large deals and help clients reinvest savings into innovation. Moreover, it opens new pools of addressable spend for us to advance our AI Builder strategy. Now, turning to segment results. Financial services once again led with full-year constant currency revenue growth of approximately 7%. This was driven by strong performance in North America across banking, financial services, and insurance clients.
Jatin Dalal: For the full year, the revenue of $21.1 billion grew 6.4% in constant currency, including 260 basis points of growth from Belcan. With respect to demand, the environment remains complex. Traditional discretionary spending cycles continue to evolve as clients rebaseline expectations for productivity gains. However, we view this as an opportunity to capture wallet share in large deals and help clients reinvest savings into innovation. Moreover, it opens new pools of addressable spend for us to advance our AI Builder strategy. Now, turning to segment results. Financial services once again led with full-year constant currency revenue growth of approximately 7%. This was driven by strong performance in North America across banking, financial services, and insurance clients.
With respect to demand the environment remains complex.
Traditional discretionary spending Cycles continue to evolve as clients, rebased line, expectation for productivity gains.
For the full year, the revenue of 21.1 billion grew 6.4% in constant currency, including 260 basis points of growth from balcon.
With respect to demand the environment remains complex.
However, we view this as an opportunity to capture wallet share in large deals and help clients reinvest savings into.
Innovation.
Traditional discretionary, spending Cycles continue to evolve as clients re Baseline expectations for productivity gains.
Moreover, it opens New Pools of addressable spend for us to advance our AI Builder strategy.
Now, turning to segment results.
However, we view this as an opportunity to capture wallet share in large deals and help clients reinvest savings into.
Innovation.
Financial Services. Once again, LED with full year constant currency Revenue growth of approximately 7%
Moreover, it opens new pools of addressable spend for us to advance our AI Builder strategy.
Now, turning to segment results.
This was driven by strong performance in North America across banking financial services and insurance clients.
we have seen a steady Improvement in discretionary spending,
Financial Services. Once again, LED with full year constant currency Revenue growth of approximately 7%
In the last several quarters and consistent large deal signings.
Including a new Mega deal in the fourth quarter.
Jatin Dalal: We have seen a steady improvement in discretionary spending in the last several quarters and consistent large deal signings, including a new mega deal in Q4. Our pipeline is strong, and we feel well positioned to carry this momentum in 2026. Health Sciences' performance was resilient despite ongoing industry cost pressures and policy changes. In this period of heightened uncertainty, we are helping customers reduce costs while improving patient experiences and accelerating productivity. These cost savings are funding clients' future-focused investment across core platforms, cloud modernization, and regulatory readiness. We are seeing GenAI projects grow in areas like claims efficiency, clinical documentation, and customer experience. TriZetto remains a core differentiator, driving growth in implementation and managed services as clients modernize their administrative costs. Products and resources performance has been stable.
Jatin Dalal: We have seen a steady improvement in discretionary spending in the last several quarters and consistent large deal signings, including a new mega deal in Q4. Our pipeline is strong, and we feel well positioned to carry this momentum in 2026. Health Sciences' performance was resilient despite ongoing industry cost pressures and policy changes. In this period of heightened uncertainty, we are helping customers reduce costs while improving patient experiences and accelerating productivity. These cost savings are funding clients' future-focused investment across core platforms, cloud modernization, and regulatory readiness. We are seeing GenAI projects grow in areas like claims efficiency, clinical documentation, and customer experience. TriZetto remains a core differentiator, driving growth in implementation and managed services as clients modernize their administrative costs. Products and resources performance has been stable.
This was driven by strong performance in North America across banking, financial services, and insurance clients.
we have seen a steady Improvement in discretionary spending,
Line is strong and we feel well positioned to carry this momentum in 2026.
In the last several quarters and consistent large deal signings.
Including a new Mega deal in the fourth quarter.
Health Sciences performance was resilient despite ongoing industry cost pressures and policy changes.
Our pipeline is strong, and we feel well positioned to carry this momentum in 2026.
In this period of heightened uncertainty, we are helping customers reduce costs while improving patient experiences and accelerating productivity.
Health Sciences performance was resilient despite ongoing industry cost pressures and policy changes.
These cost savings are funding clients, future, Focus, investment, occurs core platforms, cloud modernization, and Regulatory readiness.
In this period of heightened uncertainty, we are helping customers reduce costs while improving patient experiences and accelerating productivity.
We are seeing gen AI projects grow in areas like claims efficiency, clinical documentation and customer experience.
This cost savings are funding clients future focused investment across core platforms, cloud modernization and Regulatory readiness.
And try to remains a core differentiator, driving growth in implementation and managed Services as clients modernize their administrative course.
We are seeing Jai projects grow in areas like claims efficiency, clinical documentation, and customer experience.
And Try to remains a core differentiator, driving growth in implementation and managed services as clients modernize their administrative course.
Products and resources performance has been stable, while Terry for uncertainty continues to suppress. Discretionary spending, we expect large steel traction, during the second half of 2025 to drive better performance in 2026.
Jatin Dalal: While tariff uncertainty continues to suppress discretionary spending, we expect large deal traction during the second half of 2025 to drive better performance in 2026. AI adoption is growing across consumer and retail sectors, leading to demand for data services and agentic-led experience transformation. In communications, media, and technology, Q4 year-over-year growth among our technology customers was more than offset by weakness in comms and media. Within comms and media, we have seen some impact from broader end market softness, particularly in North America. On the technology side, clients continue to rapidly innovate and adopt GenAI, which is driving demand for our services. Geographically, North America was again our standout region in the Q4, with growth of more than 4% year-over-year in constant currency, driven by financial services and healthcare.
Jatin Dalal: While tariff uncertainty continues to suppress discretionary spending, we expect large deal traction during the second half of 2025 to drive better performance in 2026. AI adoption is growing across consumer and retail sectors, leading to demand for data services and agentic-led experience transformation. In communications, media, and technology, Q4 year-over-year growth among our technology customers was more than offset by weakness in comms and media. Within comms and media, we have seen some impact from broader end market softness, particularly in North America. On the technology side, clients continue to rapidly innovate and adopt GenAI, which is driving demand for our services. Geographically, North America was again our standout region in the Q4, with growth of more than 4% year-over-year in constant currency, driven by financial services and healthcare.
AI adoption is growing across consumer and Retail sectors leading to demand for data services and agent declared experience transformation.
In Communications media and Technology.
Products and resources performance has been stable while Terry fun certainty continues to suppress. Discretionary spending, we expect large deal traction. During the second half of 2025 to drive better performance in 2026.
Fourth quarter year-over-year growth, among our technology. Customers was more than offset by weakness in comps and media.
AI adoption is growing occurs consumer and Retail sectors leading to demand for data services and agent declared experience transformation.
within comps and media, we have seen
In Communications media and Technology.
Some impact from broader and Market softness, particularly in North America.
On the technology side clients, continue to rapidly innovate.
Fourth quarter year-over-year growth, among our technology. Customers was more than offset by weakness in comps and media.
And adopt gen AI, which is driving demand for our services.
within comps and media, we have seen
Some impact from broader and Market softness, particularly in North America.
On the technology side, clients continue to rapidly innovate.
Geographically. North America was again, our standard of region in the fourth quarter with growth of more than 4% year-over-year in constant currency.
And adopt gen AI, which is driving demand for our services.
Driven by financial services and Healthcare.
Europe, grew 2% in constant currency with Healthy Growth in financial services and among Life Sciences customers.
Geographically, North America was again our standout region in the fourth quarter, with growth of more than 4% year-over-year in constant currency.
Jatin Dalal: Europe grew 2% in constant currency, with healthy growth in financial services and among life sciences customers. Rest of World grew in line with the total company, driven by the Middle East. Turning to bookings. Bookings growth in Q4 was driven by robust large deal performance. We signed 12 deals, each with TCV of more than $100 million. This includes 2 mega deals in the quarter, one in financial services and one in healthcare. On a trailing twelve-month basis, bookings grew 5% and represented a book-to-bill of 1.3. Annual contract value declined modestly year-over-year due to the mix of longer duration deals and softness in small deal bookings. That said, our backlog visibility at year-end is similar to where it stood this time last year and underpins our confidence in our full-year guidance. Now, moving on to margins.
Jatin Dalal: Europe grew 2% in constant currency, with healthy growth in financial services and among life sciences customers. Rest of World grew in line with the total company, driven by the Middle East. Turning to bookings. Bookings growth in Q4 was driven by robust large deal performance. We signed 12 deals, each with TCV of more than $100 million. This includes 2 mega deals in the quarter, one in financial services and one in healthcare. On a trailing twelve-month basis, bookings grew 5% and represented a book-to-bill of 1.3. Annual contract value declined modestly year-over-year due to the mix of longer duration deals and softness in small deal bookings. That said, our backlog visibility at year-end is similar to where it stood this time last year and underpins our confidence in our full-year guidance. Now, moving on to margins.
Rest of world grew in line with the total company driven by the Middle East.
Driven by financial services and Healthcare.
Turning to bookings.
Bookings growth in fourth quarter, was driven by robust lashville performance.
Euro grew 2% in constant currency with Healthy Growth in financial services and among Life Sciences customers.
We signed 12 deals each with tcv of more than 100 million dollars.
Rest of world grew in line with the total company driven by the Middle East.
Turning to bookings.
This includes 2 Mega deals in the quarter, 1 in financial services and 1 in healthcare.
Bookings growth. In fourth quarter, was driven by robust large deal performance.
We signed 12 deals, each with TCV of more than $100 million.
On a trailing 12-month basis, bookings grew 5%, and represented a book to Bill of 1.3.
This includes two mega deals in the quarter.
1 in financial services and 1 in healthcare.
Annual contract value decline, modestly year-over-year due to the mix of longer duration, deals and softness in small deal Banks.
On a trailing 12-month basis, bookings grew 5%, and represented a book to Bill of 1.3.
That said our backlog visibility at year end is similar to where it stood this time last year and underpins our confidence in our full year guidance.
Now, moving on to margins.
Fourth quarter, adjusted, operating margin of 16% increase by 30 basis points year over year.
That said our backlog visibility at year end is similar to where it stood this time last year and underpins our confidence in our full year guidance.
Jatin Dalal: Fourth quarter adjusted operating margin of 16% increased by 30 basis points year-over-year, benefiting from NextGen program savings, increased utilization, and the Indian rupee depreciation. We delivered this result despite increased compensation costs, including our merit cycle and variable compensation, which drove a significant portion of our gross margin change year-over-year. Variable compensation for majority of our associates is expected to be the highest since 2018, and we remain committed to investing in talent to fuel our growth. In November, the Government of India implemented certain provisions of the Code on Social Security, or Labor Code, as part of a broader labor law consolidation initiative. These rules did not have a material impact on our P&L in the quarter, but did result in a one-time increase to our defined benefit liability on our balance sheet, with a corresponding increase to accumulated other comprehensive income.
Jatin Dalal: Fourth quarter adjusted operating margin of 16% increased by 30 basis points year-over-year, benefiting from NextGen program savings, increased utilization, and the Indian rupee depreciation. We delivered this result despite increased compensation costs, including our merit cycle and variable compensation, which drove a significant portion of our gross margin change year-over-year. Variable compensation for majority of our associates is expected to be the highest since 2018, and we remain committed to investing in talent to fuel our growth. In November, the Government of India implemented certain provisions of the Code on Social Security, or Labor Code, as part of a broader labor law consolidation initiative. These rules did not have a material impact on our P&L in the quarter, but did result in a one-time increase to our defined benefit liability on our balance sheet, with a corresponding increase to accumulated other comprehensive income.
Now, moving on to margins.
Benefiting from NextGen program savings increase utilization and the Indian rupee depreciation.
Fourth quarter adjusted operating margin of 16%, an increase of 30 basis points year over year.
We delivered this result despite increased compensation costs including our marriage cycle and variable compensation, which drove a significant portion of our gross margin change year over year.
Benefiting from NextGen program savings increase utilization and the Indian rupee depreciation.
Variable compensation for majority of our Associates is expected to be the highest since 2018. And we remain committed to investing in Talent to fuel our growth.
We delivered this result despite increased compensation costs including our marriage cycle and variable compensation, which drove a significant portion of our gross margin change year over year.
In November the government of India implemented, certain provisions of the code on social security or labor code as part of a broader, labor law, consolidation initiative.
Variable compensation for the majority of our associates is expected to be the highest since 2018. And we remain committed to investing in talent to fuel our growth.
In November the government of India implemented, certain provisions of the code on social security or labor code as part of a broader, labor law, consolidation initiative.
These rules did not have a material impact on our PL in the quarter, but did result in a 1-time increase to our defined benefit liability on our balance sheet with a corresponding increase to accumulated other comprehensive income.
We anticipate a modest increase in our defined benefit costs.
Prospectively.
Now to additional details on EPS cash flow and capital allocation.
These rules did not have a material impact on our PL in the quarter, but did result in a 1-time increase to our defined benefit liability on our balance sheet with a corresponding increase to accumulated other comprehensive income.
Jatin Dalal: We anticipate a modest increase in our defined benefit costs prospectively. Now to additional details on EPS, cash flow, and capital allocation. Fourth quarter adjusted diluted EPS was $1.35, up 12% year-over-year. This drove full-year EPS of $5.28, up 11% from the prior year. DSO of 81 days declined 1 day sequentially and increased 3 days year-over-year. Fourth quarter free cash flow was approximately $800 million and brought the full year amount to $2.7 billion, representing more than 100% of net income. During the fourth quarter, we returned nearly $500 million of capital to shareholders through share repurchases and dividends, bringing the full year total to approximately $2 billion.
Jatin Dalal: We anticipate a modest increase in our defined benefit costs prospectively. Now to additional details on EPS, cash flow, and capital allocation. Fourth quarter adjusted diluted EPS was $1.35, up 12% year-over-year. This drove full-year EPS of $5.28, up 11% from the prior year. DSO of 81 days declined 1 day sequentially and increased 3 days year-over-year. Fourth quarter free cash flow was approximately $800 million and brought the full year amount to $2.7 billion, representing more than 100% of net income. During the fourth quarter, we returned nearly $500 million of capital to shareholders through share repurchases and dividends, bringing the full year total to approximately $2 billion.
Diluted EPS was $1.35.
We anticipate a modest increase in our defined benefit costs.
Prospective.
Up, 12% year-over-year.
Now to additional details on EPS cash flow and capital allocation.
And 28 cents up 11% from the prior year.
Port quarter. Adjusted diluted EPS was $1.35.
Up, 12% year-over-year.
DSO of 81 days declined 1 day sequentially and increased 3 days year over year.
As of 5.28 up 11% from the prior year.
Port quarter free cash flow was approximately 800 million and brought the full year of amount to 2.7 billion dollars representing more than 100% of net income.
DSO of 81 days, declined 1 day sequentially and increased 3 days year over year.
During the fourth quarter, we returned nearly 500 million dollars of capital to shareholders to share repurchases and dividends bringing the full year total to approximately 2 billion dollars.
Fourth quarter free cash flow was approximately $800 million and brought the full year amount to $2.7 billion, representing more than 100% of net income.
We ended the quarter with cash and short-term Investments of 1.9 billion or net cash of 1.3 billion.
Jatin Dalal: We ended the quarter with cash and short-term investments of $1.9 billion, or net cash of $1.3 billion. These amounts exclude about $730 million, which was deemed restricted cash and held in escrow ahead of the closing of the 3Cloud acquisition on January month. Our M&A pipeline is healthy, and we intend to maintain an active acquisition strategy to strengthen our capabilities aligned with our AI Builder strategy. We believe our robust free cash flow and strong balance sheet provide us with flexibility to invest strategically in the quarters ahead, while continuing to return significant capital to shareholders. Now, turning to 2026 guidance. For the first quarter, we expect revenue to grow 2.7% to 4.2% year-over-year in constant currency. This includes approximately 100 basis points from our recently completed acquisition of 3Cloud.
Jatin Dalal: We ended the quarter with cash and short-term investments of $1.9 billion, or net cash of $1.3 billion. These amounts exclude about $730 million, which was deemed restricted cash and held in escrow ahead of the closing of the 3Cloud acquisition on January month. Our M&A pipeline is healthy, and we intend to maintain an active acquisition strategy to strengthen our capabilities aligned with our AI Builder strategy. We believe our robust free cash flow and strong balance sheet provide us with flexibility to invest strategically in the quarters ahead, while continuing to return significant capital to shareholders. Now, turning to 2026 guidance. For the first quarter, we expect revenue to grow 2.7% to 4.2% year-over-year in constant currency. This includes approximately 100 basis points from our recently completed acquisition of 3Cloud.
During the fourth quarter, we returned nearly 500 million dollars of capital to shareholders to share repurchases and dividends bringing the full year total to approximately 2 billion dollars.
These amounts exclude about 730 million, which was deemed restricted cash. And healthiness grow ahead of the closing of the 3 Cloud acquisition on January 1st.
We ended the quarter with cash and short-term investments of $1.9 billion, or net cash of $1.3 billion.
Our m&a pipeline is healthy and we intend to maintain an active acquisition strategy, to strengthen our capabilities aligned with our AI Builder strategy.
These amounts exclude about $730 million, which was deemed restricted cash and held in escrow ahead of the closing of the 3Cloud acquisition on January 1st.
We believe our robust free, cash flow and strong balance sheet, provide us with flexibility to invest strategically in the quarters ahead, while continuing to return significant Capital to shareholders.
Our M&A pipeline is healthy, and we intend to maintain an active acquisition strategy to strengthen our capabilities aligned with our AI Builder strategy.
For the first quarter, we expect Revenue to grow 2.7% to 4.2% year-over-year in constant currency.
We believe our robust free cash flow and strong balance sheet provide us with flexibility to invest strategically in the quarters ahead, while continuing to return significant capital to shareholders.
Now, turning to 2026 guidance.
This includes approximately 100 basis points from our recently, completed acquisition of 3 cloud.
For the first quarter, we expect revenue to grow 2.7% to 4.2% year-over-year in constant currencies.
The midpoint of this range. Implies a modest sequential decline on an organic basis due to, in part to lower buildings.
Jatin Dalal: The midpoint of this range implies a modest sequential decline on an organic basis, due in part to lower bill days in Q1. For the full year, we expect revenue to grow 4% to 6.5% in constant currency. This includes inorganic contribution of approximately 150 basis points, of which approximately one-third is expected to come from future M&A. The midpoint of the range implies organic revenue growth of approximately 3.8%, which is consistent with our 2025 performance. This is also approximately 150 basis points above the midpoint of our initial 2025 organic growth guidance provided last year. At the midpoint, our full-year guidance implies stronger sequential growth in Q2 and Q3 compared to 2025.
Jatin Dalal: The midpoint of this range implies a modest sequential decline on an organic basis, due in part to lower bill days in Q1. For the full year, we expect revenue to grow 4% to 6.5% in constant currency. This includes inorganic contribution of approximately 150 basis points, of which approximately one-third is expected to come from future M&A. The midpoint of the range implies organic revenue growth of approximately 3.8%, which is consistent with our 2025 performance. This is also approximately 150 basis points above the midpoint of our initial 2025 organic growth guidance provided last year. At the midpoint, our full-year guidance implies stronger sequential growth in Q2 and Q3 compared to 2025.
This includes approximately 100 basis points from our recently. Completed acquisition of 3 clubs.
for the full year, we expect Revenue to grow
The midpoint of this range. Implies a modest sequential decline on an organic basis due to, in part to lower buildings.
In Cuba.
4% to 6.5% in constant currency. This includes inorganic contribution of approximately 150 basis points of which approximately 1/3 is expected to come from future m&a.
The midpoint of the range implies organic Revenue, growth of approximately 3.8%, which is consistent with our 2025 performance.
For the full year, we expect revenue to grow 4% to 6.5% in constant currency. This includes an inorganic contribution of approximately 1,150 basis points, of which approximately one-third is expected to come from future M&A.
This is also approximately 150 basis point above the midpoint of our initial 2025 organic growth. Guidance provided last year
The midpoint of the range implies organic revenue growth of approximately 3.8%, which is consistent with our 2025 performance.
At the midpoint our full year guidance implies stronger sequential growth in second and third quarter compared to 2025.
This is also approximately 1,150 basis points above the midpoint of our initial 2025 organic growth guidance provided last year.
And similar to our guidance philosophy last February, the midpoint is based on our current visibility and the discretionary demand environment as we see it today.
Jatin Dalal: And similar to our guidance philosophy last February, the midpoint is based on our current visibility and the discretionary demand environment as we see it today. Our adjusted operating margin guidance is 15.9% to 16.1%, which represents 10 to 30 basis points of expansion and is in line with the outlook we provided at our Investor Day last year. Similar to 2025, we expect expansion will be driven by the cost discipline and SG&A leverage. We expect free cash flow conversion of 90 to 100% of the net income. Adjusted effective tax rate is expected to be in the 25% to 26% range. The midpoint implies a modest increase year-over-year, driven in part by discrete beneficial items in 2025 that we do not expect to repeat in 2026.
Jatin Dalal: And similar to our guidance philosophy last February, the midpoint is based on our current visibility and the discretionary demand environment as we see it today. Our adjusted operating margin guidance is 15.9% to 16.1%, which represents 10 to 30 basis points of expansion and is in line with the outlook we provided at our Investor Day last year. Similar to 2025, we expect expansion will be driven by the cost discipline and SG&A leverage. We expect free cash flow conversion of 90 to 100% of the net income. Adjusted effective tax rate is expected to be in the 25% to 26% range. The midpoint implies a modest increase year-over-year, driven in part by discrete beneficial items in 2025 that we do not expect to repeat in 2026.
At the midpoint, our full-year guidance implies stronger sequential growth in the second and third quarters compared to 2025.
Visibility and the discretionary demand environment as we see it today.
Our adjusted operating margin guidance is 15.9% to 16.1% which represents 10 to 30 basis points of expansion and is in line with the Outlook. We provided at our investor Day last year.
Similar to 2025, we expect expansion will be driven by the cost discipline and sgna Leverage.
We expect free cash flow conversion of 90 to 100% of the net income.
Our adjusted operating margin guidance is 15.9% to 16.1% which represents 10 to 30 basis points of expansion and is in line with the Outlook. We provided at our investor Day last year.
I just did effective tax rate is expected to be in the 25% to 26% range.
Similar to 2025, we expect expansion will be driven by the cost discipline and sgna Leverage.
We expect free cash flow conversion of 90 to 100% of the net income.
The midpoint implies a modest increase year-over-year. Driven in part by discrete beneficial items in 2025 that we do not expect to repeat in 2026.
Adjusted effective tax rate is expected to be to be in the 25% to 26% range.
And our expected weighted. Average dilutive share count is approximately 475 million.
Jatin Dalal: And our expected weighted average dilutive share count is approximately 475 million. This leads to adjusted diluted EPS guidance of $5.56 to $5.70, representing 5% to 8% year-over-year growth. Expected EPS growth is being driven by anticipated revenue growth, margin expansion, and lower share count. This is being partially offset by a higher tax rate, lower interest income as a result of lower assumed interest rates, and an increase in non-operating expenses related to the India labor code changes. For 2026, we expect to return approximately $1.6 billion of capital to shareholders, including approximately $1 billion towards share repurchases and the remainder towards our regular dividend. This leaves ample expected free cash flow available for future M&A. As always, we will evaluate these plans regularly.
Jatin Dalal: And our expected weighted average dilutive share count is approximately 475 million. This leads to adjusted diluted EPS guidance of $5.56 to $5.70, representing 5% to 8% year-over-year growth. Expected EPS growth is being driven by anticipated revenue growth, margin expansion, and lower share count. This is being partially offset by a higher tax rate, lower interest income as a result of lower assumed interest rates, and an increase in non-operating expenses related to the India labor code changes. For 2026, we expect to return approximately $1.6 billion of capital to shareholders, including approximately $1 billion towards share repurchases and the remainder towards our regular dividend. This leaves ample expected free cash flow available for future M&A. As always, we will evaluate these plans regularly.
The midpoint implies a modest increase year-over-year. Driven in part by discrete beneficial items in 2025 that we do not expect to repeat in 2026.
And our expected weighted. Average dilutive share count is approximately 475 million.
This leads to adjusted diluted EPS. Guidance of 556 to 5.70, representing, 5 to 8% year-over-year growth.
Expected EPS growth is being driven by anticipated Revenue growth, margin expansion and lower share count.
This leads to adjusted diluted EPS guidance, of 5556 to 5.70 representing 5 to 8% year-over-year growth.
Expected EPS growth is being driven by anticipated revenue growth, margin expansion, and lower share count.
This is being partially offset by a higher tax rate, lower interest income, as a result of lower assumed interest rates, and an increase in non-operating expenses, related to the India, labor code changes.
What 2026 we expect to return approximately 1.6 billion.
This is being partially offset by a higher tax rate, lower interest income, as a result of lower assumed interest rates, and an increase in non-operating expenses, related to the India, labor code changes.
of capital to shareholders including approximately 1 billion dollars to a share repurchases and the remainder towards our regular dividend,
For 2026, we expect to return approximately $1.6 billion.
This leaves, ample expected, free, cash flow available for future m&a.
As always, we will evaluate these plans regularly.
of capital to shareholders including approximately 1 billion dollars to a share repurchases and the remainder towards our regular dividend,
In the absence of strategic and accurate acquisition targets, we expect to return Capital to shareholders and not build cash on the balance sheet.
This lives, ample expected, free cash flow available for future M&S.
Jatin Dalal: In the absence of strategic and accretive acquisition targets, we expect to return capital to shareholders and not build cash on the balance sheet. Finally, as we mentioned last quarter, we continue to evaluate a potential primary offering and secondary listing in India. We have engaged various financial and legal advisors, as well as the regulators in India, to assess the idea. As always, we remain committed to acting in the best interest of our shareholders, and this process aligns with this commitment. As of today, the board and management team continue to evaluate the proposal and have not yet made a decision. In summary, 2025 was a successful year. As we look toward 2026, we are well positioned to continue our momentum. As Ravi mentioned earlier, our ambition is to lead as an AI builder and maintain our position in our industry's winner's circle.
Jatin Dalal: In the absence of strategic and accretive acquisition targets, we expect to return capital to shareholders and not build cash on the balance sheet. Finally, as we mentioned last quarter, we continue to evaluate a potential primary offering and secondary listing in India. We have engaged various financial and legal advisors, as well as the regulators in India, to assess the idea. As always, we remain committed to acting in the best interest of our shareholders, and this process aligns with this commitment. As of today, the board and management team continue to evaluate the proposal and have not yet made a decision. In summary, 2025 was a successful year. As we look toward 2026, we are well positioned to continue our momentum. As Ravi mentioned earlier, our ambition is to lead as an AI builder and maintain our position in our industry's winner's circle.
As always, we will evaluate these plans regularly.
Finally, as we mentioned last quarter, we continue to evaluate a potential primary offering and secondary listing in India.
In the absence of strategic and accurate acquisition targets, we expect to return Capital to shareholders and not build cash on the balance sheets.
We have engaged various financial and legal, advisers, as well as The Regulators in India, to assess the idea,
Finally, as we mentioned last quarter, we continue to evaluate a potential primary offering and secondary listing in India.
As always, we remain committed to acting in the best interest of our shareholders. And this process aligns with this commitment.
we have engaged various financial and legal advisors, as well as The Regulators in India, to assess the idea,
As of today, the board and management team continue to evaluate the proposal and have not yet made a decision.
In summary 2025 was a successful year.
As always, we remain committed to acting in the best interest of our shareholders, and this process aligns with this commitment.
As we look toward 2026, we are well positioned to continue our momentum.
As of today, the Board and management team continue to evaluate the proposals and have not yet made a decision.
As Ravi mentioned earlier, our ambition is to lead as an AI Builder and maintain our position in our Industries Winner Circle.
In summary, 2025 was a successful year.
With that, we will open up the call for your questions.
As we look toward 2026, we are well positioned to continue our momentum.
Thank you. We'll now be conducting a question and answer session.
Jatin Dalal: With that, we will open up the call for your questions.
Jatin Dalal: With that, we will open up the call for your questions.
As Ravi mentioned earlier, our ambition is to lead as an AI Builder and maintain our position in our Industries in our Circle.
If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
With that, we will open up the call for your questions.
Operator: Thank you. We'll now be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. In the interest of time, we ask that you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Jason Kupferberg with Wells Fargo. Please proceed with your question.
Operator: Thank you. We'll now be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. In the interest of time, we ask that you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Jason Kupferberg with Wells Fargo. Please proceed with your question.
You may press star 2. If you'd like to remove your question from the queue.
Thank you. We'll now be conducting a question and answer session.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
In the interest of time, we ask that you each keep to 1 question and 1 follow-up. Thank you.
You may press star 2. If you'd like to remove your question from the camp.
Our first question comes from the line of Jason kupperberg with Wells Fargo. Please proceed with your question.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
In the interest of time, we ask that you each keep to 1 question and 1 follow-up. Thank you.
Jason Kupferberg: Good morning, guys. Nice to see these numbers. I just wanted to start on the, AI topic and, obviously some, new data points coming out from certain industry participants just over the last couple of days, for example, talking about expediting ERP implementations, pretty significantly. It certainly seems to us like Cognizant to date has been a net winner from AI, but wanted to get your perspective on how that plays out in 2026. And maybe just in light of, some of these recent headlines, what percent of your total revenue currently comes from package implementation? Thanks.
Jason Kupferberg: Good morning, guys. Nice to see these numbers. I just wanted to start on the, AI topic and, obviously some, new data points coming out from certain industry participants just over the last couple of days, for example, talking about expediting ERP implementations, pretty significantly. It certainly seems to us like Cognizant to date has been a net winner from AI, but wanted to get your perspective on how that plays out in 2026. And maybe just in light of, some of these recent headlines, what percent of your total revenue currently comes from package implementation? Thanks.
Our first question comes from the line of Jason kupperberg with Wells Fargo. Please proceed with your question.
Good morning guys. Nice to see these numbers. I just wanted to start on the uh, AI topic and obviously some uh, new data points. Coming out from certain industry participants just over the last couple of days. For example, talking about Expediting Erp, implementations, uh, pretty significantly. It certainly seems to us like cognizant to date, has been a net winner from AI but wanted to get your prospective on how that plays out in in 26 and and maybe just in light of uh some of these recent.
Headlines. Um, what percent of your total revenue currently comes from package implementation? Thanks.
Thank you for that question. Um, you know,
this has happened over Tech revolutions before.
Good morning, guys. Nice to see these numbers. I just wanted to start on the, uh, AI topic, and obviously some, uh, new data points coming out from certain industry participants just over the last couple of days—for example, talking about expediting ERP implementations, uh, pretty significantly. It certainly seems to us like Cognizant, to date, has been a net winner from AI, but I wanted to get your perspective on how that plays out in ‘26, and maybe just in light of, uh, some of these recent headlines. Um, what percent of your total revenue currently comes from package implementation? Thanks.
Ravi Kumar: ... Thank you for that question. You know, this has happened over tech revolutions before. When a new technology comes, we kind of think the old technology will go away, but the new technology will actually provide more opportunities. I see this as an increase in our total addressable spend. I mean, if you're referring to what's happening in the last few days, I can tell you any tool, any technology will magically not generate value on the other side. You need a bridge, and that bridge is what companies like Cognizant do. I'm gonna be precise on what I mean. You can't apply this technology on existing old processes, so you have to reinvent and reimagine a process. This is a technology which is very contextual in nature. It's written over - it's not written on the microprocessor, which is deterministic.
Ravi Kumar: ... Thank you for that question. You know, this has happened over tech revolutions before. When a new technology comes, we kind of think the old technology will go away, but the new technology will actually provide more opportunities. I see this as an increase in our total addressable spend. I mean, if you're referring to what's happening in the last few days, I can tell you any tool, any technology will magically not generate value on the other side. You need a bridge, and that bridge is what companies like Cognizant do. I'm gonna be precise on what I mean. You can't apply this technology on existing old processes, so you have to reinvent and reimagine a process. This is a technology which is very contextual in nature. It's written over - it's not written on the microprocessor, which is deterministic.
Thank you for that question. Um, you know,
Uh when a new technology comes with kind of think the old technology will go away, but the new technology will actually provide more opportunities.
I see this as a
this has happened over Tech revolutions before.
as a increase in our total addressable spend. I mean, if you're referring to what's happening in the last few days. So I can tell you any tool, any technology will magically not generate value on the other side.
I see this as a
as a increase in our total addressable spend. I mean, if you're referring to what's happening in the last few days, I can tell you any tool, any technology will magically not generate value on the other side.
You need a bridge and that bridge is what companies like cognizant do and I'm going to be precise on what I mean. You can't apply this technology on existing old processes so you have to reinvent and reimagine a process.
This is a technology which is very contextual in nature. It's written over, it's not written on the microprocessor, which is deterministic. It's very probabilistic which means
We have pioneered something, called Context, Engineering.
You need a bridge and that bridge is what companies like cognizant do and I'm going to be precise on what I mean. You can't apply this technology on existing old processes so you have to reinvent and reimagine a process.
Which is grounding this technology in the reality of an Enterprise.
Ravi Kumar: It's very probabilistic, which means we have pioneered something called context engineering, which is grounding this technology in the reality of an enterprise, understanding the heterogeneity of an enterprise. I mean, two SAP implementations are not the same, just to go back to package work you spoke about. It is about understanding the hustle, the flows, and everything else. Integrating, you know, deterministic software, which was written for the last 25 years, with probabilistic software, which will be written for the next 25 years. Building flows where digital and human labor can work together, integrating it into the operating and the physical layers of an enterprise. I think all of this is a lot of heavy lift.
Ravi Kumar: It's very probabilistic, which means we have pioneered something called context engineering, which is grounding this technology in the reality of an enterprise, understanding the heterogeneity of an enterprise. I mean, two SAP implementations are not the same, just to go back to package work you spoke about. It is about understanding the hustle, the flows, and everything else. Integrating, you know, deterministic software, which was written for the last 25 years, with probabilistic software, which will be written for the next 25 years. Building flows where digital and human labor can work together, integrating it into the operating and the physical layers of an enterprise. I think all of this is a lot of heavy lift.
This is a technology which is very contextual in nature. It's written over, it's not written on the microprocessor, which is deterministic. It's very probabilistic, which means we have pioneered something, called Context, Engineering
Uh understanding the heterogeneity of an Enterprise. I mean, 2 saplings are not the same just to go back to package work, you spoke about. Um and it is about understanding The Hustle, the flows and everything else integrating
Which is grounding this technology in the reality of an Enterprise.
Um, you know, deterministic software which was written for the last 25 years with probabilistic software, which will be written for the next 25 years.
Uh, understanding the heterogeneity of an enterprise. I mean with two SAP implementations, they are not the same, just to go back to package work you spoke about, um, and it is about understanding the hustle, the flows, and everything else integrating.
And uh building flows where digital and human labor can work together. Integrating it into the operating and the physical layers of an Enterprise.
Um, you know, deterministic software, which was written for the last 25 years, with probabilistic software, which will be written for the next 25 years.
And uh building flows where digital and human labor can work together. Integrating it into the operating and the physical layers of an Enterprise.
Hiring. All of this is a lot of heavy lift. I mean, if this was all real and if this was it, it it would have switched on magically without anybody doing anything, we would have seen the drift of value already and that's not happened yet.
Ravi Kumar: I mean, if this was all real, and if this was it, it would have switched on magically without anybody doing anything, we would have seen the drift of value already, and that's not happened yet. There is. You know, our study said there's $4.5 trillion of labor, which can actually be, you know, amplified with higher productivity out of the $15 trillion in the United States in the last few years. It's not drifted yet because all of this has to be done. Equally, going back to what you just asked, there is technical debt. There is a lot of backlog. There is the elasticity of software, the traditional software, leave alone the new software we're gonna write, which can actually expand.
Ravi Kumar: I mean, if this was all real, and if this was it, it would have switched on magically without anybody doing anything, we would have seen the drift of value already, and that's not happened yet. There is. You know, our study said there's $4.5 trillion of labor, which can actually be, you know, amplified with higher productivity out of the $15 trillion in the United States in the last few years. It's not drifted yet because all of this has to be done. Equally, going back to what you just asked, there is technical debt. There is a lot of backlog. There is the elasticity of software, the traditional software, leave alone the new software we're gonna write, which can actually expand.
Hiding all of this.
Actually be you know um Amplified with higher productivity out of the 15 trillion dollars in in the United States.
This is a lot of heavy lift. I mean, if this was all real and if this was it, it it would have switched on magically without anybody doing anything, we would have seen the drift of value already and that's not happened yet.
In the last few years, it's not drifted yet because all of this has to be done equally going back to what you just asked.
There is, you know, our study said is 4.5 billion dollars of Labor which can actually be, you know, um, Amplified with higher productivity out of the 15 trillion dollars in in the United States.
In the last few years, it's not drifted yet because all of this has to be done.
Equally going back to what you just asked.
There is technical debt. There is, uh, there is, uh, a lot of backlog. There is, uh, there is, uh, the elasticity of software, the traditional software, leave alone, the new software we're going to write, which can actually expand. So, we see this as a net new Tailwind for us on 2 stream lines on the traditional software. Apply it
Ravi Kumar: So we see this as a net new tailwind for us on two swim lanes. On the traditional software, apply it, you know, and do more for less, and get more consumption because of elasticity, take out technical debts, take out the backlog. On the other, other end, apply this on, on a much new addressable spend, which classical software didn't penetrate. So I see this as more of a bigger opportunity for us and a higher, with a higher surface area for us to actually operate. So this is tailwind. We are turning out to be winners. Our Builder strategy is working, and our Three-Vector Strategy we spoke about, both on applying this to traditional software and writing new agentic software, which can actually capture significantly more, significantly more surface area in enterprises. We think it's a, it's a phenomenal opportunity.
Ravi Kumar: So we see this as a net new tailwind for us on two swim lanes. On the traditional software, apply it, you know, and do more for less, and get more consumption because of elasticity, take out technical debts, take out the backlog. On the other, other end, apply this on, on a much new addressable spend, which classical software didn't penetrate. So I see this as more of a bigger opportunity for us and a higher, with a higher surface area for us to actually operate. So this is tailwind. We are turning out to be winners. Our Builder strategy is working, and our Three-Vector Strategy we spoke about, both on applying this to traditional software and writing new agentic software, which can actually capture significantly more, significantly more surface area in enterprises. We think it's a, it's a phenomenal opportunity.
There is technical debt. There is, uh, there is a lot of backlog. There is, uh, there is, uh, the elasticity of software, the traditional software, leave alone, the new software we're going to write, which can actually expand. So, we see this as a net new Tailwind for us. On 2 swimming, the traditional software, apply it.
You know, and do more for less and get more consumption because of elasticity. Take out, um, technical debts, take out the backlog and the other end, apply this on uh, on a much new addressable spend which classical software didn't, uh, penetrate. So,
You know, and do more for less and get more consumption because of elasticity. Take out, um, technical debts, take out the backlog and the other other end, apply this on uh on a much new addressable spend which classical software didn't uh, penetrate. So,
I see this as more of a bigger opportunity for us and a higher with a higher surface area for us to actually operate. So this is Tailwind. We are turning out to be winners or build a strategy is working and our 3 vectors strategy. We spoke about both on applying this to traditional software and riding new, agentic software, which can actually capture significantly more. Uh uh significantly more surface area and Enterprises. We think it's a it's a phenomenal opportunity now.
enterprise software package, which you spoke about, you know,
Ravi Kumar: Now, enterprise software package, which you spoke about, you know, package software has been there for the last 20 years. There has been deterministic code, there's been systems of record in it. We're going to apply layers of AI value on top of it, actually generate more value than before. So there is gonna be a coexistence of deterministic and probabilistic software, and there's gonna be interplay between the two.
Ravi Kumar: Now, enterprise software package, which you spoke about, you know, package software has been there for the last 20 years. There has been deterministic code, there's been systems of record in it. We're going to apply layers of AI value on top of it, actually generate more value than before. So there is gonna be a coexistence of deterministic and probabilistic software, and there's gonna be interplay between the two.
I see this as more of a bigger opportunity for us and a higher with a higher surface area for us to actually operate. So this is Tailwind. We are cutting out to be winners or build a strategy is working and our 3 Vector strategy. We spoke about both on applying this to traditional software and riding new, agentic software, which can actually capture significantly more. Uh uh significantly more surface area and Enterprises. We think it's a it's a phenomenal opportunity now.
enterprise software package, which you spoke about, you know,
Packaged software has been there for the last 20 years. There has been deterministic code, there's been systems of record in it. We're going to apply layers of AI value on top of it, actually generate more value than before. So this is going to be a coexistence of deterministic and probabilistic software, and there's going to be interplay between the 2.
Packaged software has been there for the last 20 years. There has been deterministic code, there's been systems of record in it. We are going to apply layers of AI value on top of it, actually generate more value than before. So, it is going to be a coexistence of deterministic and probabilistic software. And there's going to be interplay between the 2.
Jason Kupferberg: Okay, understood. Thanks for all that color. And just a numbers one for Jatin. I wanted to ask about gross margins. It sounded like the year-over-year decline in Q4 was primarily due to higher variable comp, which is arguably a good problem to have, just given the overall financial performance of the company this year. But any other gross margin dynamics we should be thinking about in terms of 2026? Do you expect gross margins to be up year over year? And just to clarify, are you seeing any like-for-like pricing pressure as part of the year-over-year declines in gross margin currently? Thanks, guys.
Jason Kupferberg: Okay, understood. Thanks for all that color. And just a numbers one for Jatin. I wanted to ask about gross margins. It sounded like the year-over-year decline in Q4 was primarily due to higher variable comp, which is arguably a good problem to have, just given the overall financial performance of the company this year. But any other gross margin dynamics we should be thinking about in terms of 2026? Do you expect gross margins to be up year over year? And just to clarify, are you seeing any like-for-like pricing pressure as part of the year-over-year declines in gross margin currently? Thanks, guys.
Okay, understood. Thanks for all that caller. Um, and just a numbers 1, uh, for Jen. Um, I wanted to ask about, uh, gross margins. It it sounded like, uh, the year-over-year decline in Q4 was primarily due to higher variable comp which is arguably a good problem to have. Um, just giving the overall financial performance of the company this year, but any other gross margin Dynamics? We should be thinking about in terms of um 2026. You expect gross, margins to be up year-over-year and just to clarify. Are you seeing any like for like pricing pressure as part of uh the year-over-year declines in gross margin currently. Thanks guys.
Okay, understood. Thanks for all that caller. Um, and just a number is 1, for J. Um, I wanted to ask about uh, gross margins. It it sounded like, uh, the year-over-year decline in Q4 was primarily due to higher variable comp which is arguably a good problem to have. Um, just giving the overall financial performance of the company this year, but any other gross margin Dynamics? We should be thinking about in terms of um 2026. Do you expect gross margins to be up year-over-year and just to clarify. Are you seeing any like for like pricing pressure as part of
Jatin Dalal: Sure. So yes, Q4, the impact on gross margin was predominantly on account of, you know, higher bonus funding that we did for the full year, in quarter four, led by a strong operating margin performance for the full year, that we were able to deliver. Apart from that, there was also a salary increase, as you are aware, which came through, effective 1 November into the gross margin. So I would say those are the two factors that played out a bit in quarter four. I think the right way to see our gross margin is for the full year, and the full year impacts are predominantly one, you know, the Belcan impact for the full year in 2025, gross margins.
Jatin Dalal: Sure. So yes, Q4, the impact on gross margin was predominantly on account of, you know, higher bonus funding that we did for the full year, in quarter four, led by a strong operating margin performance for the full year, that we were able to deliver. Apart from that, there was also a salary increase, as you are aware, which came through, effective 1 November into the gross margin. So I would say those are the two factors that played out a bit in quarter four. I think the right way to see our gross margin is for the full year, and the full year impacts are predominantly one, you know, the Belcan impact for the full year in 2025, gross margins.
Uh the year-over-year declines in gross margin currently. Thanks, guys.
Sure. So, yes, the Q4, uh, uh, the impact on gross margin was predominantly on account of, uh, you know, higher bonus funding that we did for for the, for, for the full year. Um, in in quarter 4, are led by a strong operating margin performance for the full year, uh, that we were able to deliver
Sure. So, yes, the Q4, uh, uh, the impact on gross margin was predominantly on account of, uh, you know, higher bonus funding that we did for for the for, for the full year. Um, in in quarter 4 led by a strong operating margin performance for the full year, uh, that we were able to deliver
Uh, apart from that there was also a salary increase as you are aware, which came through, uh, effective first November into the gross margin. So I would say those are the 2 factors that played out a bit in in quarter 4. I think, the right way to see our cross margin is for the full year and the full year impacts are are predominantly 1. Uh, uh, you know, the the bail can uh, impact for the full year in 2025 uh, gross margins. And the second is, uh, essentially slightly. I mean, essentially the higher,
Jatin Dalal: And the second is, essentially slightly, I mean, essentially the higher bonus for 2025. And as you mentioned, that's a, that's a, that's a good thing to have. Looking ahead for 2026, I mean, there is, there is a, there is a productivity lag pressure in the industry, and therefore, the expectation that for a dollar value, you get a superior throughput than what you traditionally enjoyed through traditional productivity levers in past. And that does impact the revenue, but I wouldn't call it a, sort of a... I wouldn't call it a drag on, on margins yet, so long as you are able to execute... on your internal productivity measures and keep the cost curve below the price curve, you know, continuously.
Jatin Dalal: And the second is, essentially slightly, I mean, essentially the higher bonus for 2025. And as you mentioned, that's a, that's a, that's a good thing to have. Looking ahead for 2026, I mean, there is, there is a, there is a productivity lag pressure in the industry, and therefore, the expectation that for a dollar value, you get a superior throughput than what you traditionally enjoyed through traditional productivity levers in past. And that does impact the revenue, but I wouldn't call it a, sort of a... I wouldn't call it a drag on, on margins yet, so long as you are able to execute... on your internal productivity measures and keep the cost curve below the price curve, you know, continuously.
The Bell can, uh, impact for the full year in 2025, uh, gross margins. And the second is, uh, essentially slightly—I mean, essentially, the higher,
Uh, bonus for for 2025. And as you mentioned it's a it's a good thing to have. Uh, looking ahead for 2020, uh, 6. Uh, we I mean, there is, there is a, there is a productivity Le pressure in the industry and therefore, um, the expectation that for the, for a dollar value, you get a superior throughput than what you traditionally enjoyed, uh, through traditional productivity, levers in past, and that does impact the revenue, but I wouldn't call it a sort of a, um, I wouldn't call it a drag on, on margins yet so long as you are able to execute, uh, on your internal productivity measures and keep the Costco below the price curve, you know, consider, I mean continuously and therefore, you have seen. We have been able to deliver revenue for, uh, employee productivity and profit per employee productivity. Uh, you know, in in, in, in previous 12 months. So, so, so,
Jatin Dalal: Therefore, you have seen we have been able to deliver revenue per employee productivity and profit per employee productivity, you know, in previous 12 months. So far, we have been able to execute well against that market momentum for productivity, and therefore, I would say we are entering 2026 with that confidence. Going forward, we'll have to continue to watch out for the movement in the market. We do think that we have a few levers apart from AI productivity, and a couple of them are really the continued improvement in Pyramid. We hired 20,000, you know, fresh college graduates in 2025, and we'll continue to look at that.
Jatin Dalal: Therefore, you have seen we have been able to deliver revenue per employee productivity and profit per employee productivity, you know, in previous 12 months. So far, we have been able to execute well against that market momentum for productivity, and therefore, I would say we are entering 2026 with that confidence. Going forward, we'll have to continue to watch out for the movement in the market. We do think that we have a few levers apart from AI productivity, and a couple of them are really the continued improvement in Pyramid. We hired 20,000, you know, fresh college graduates in 2025, and we'll continue to look at that.
Uh, bonus for for 2025. And as you mentioned it's a it's a good thing to have. Uh, looking ahead for 2020, uh, 6. Uh, we I mean, there is, there is a, there is a productivity lag pressure in the industry and therefore, um, the expectation that for the foreign dollar value, you get a superior throughput than what you traditionally enjoyed, uh, through traditional productivity levers in past, and that does impact the revenue, but I wouldn't call it a, a sort of a, um, I wouldn't call it a drag on, on margins yet so long as you are able to execute, uh, on your internal productivity measures and keep the cost of below the price of, you know, I mean continuously and therefore you have seen we have been able to deliver Revenue per, uh, employee productivity and profit per employee productivity. Uh, you know, in in, in, in previous 12 months. So, so, so far, we have
So far we have been able to execute well against that market momentum for productivity and therefore um, I would say we are entering 2026 with with that confidence. Uh, going forward. We'll have to continue to watch out for for the the, the moment in the market. Uh, we do think that
Have been able to execute well against that market momentum for productivity and therefore um, I would say we are entering 2026 with with that confidence. Uh, going forward. We'll have to continue to watch out for for the the, the moment in the market. Uh, we do think that
Jatin Dalal: That, that does impact a long-term cost structure of the organization. And we'll continue to look at, you know, other traditional measures like offshoring and utilization beyond, beyond AI productivity that I spoke about. So overall, we, we have, we have things we can work through for 2026.
Jatin Dalal: That, that does impact a long-term cost structure of the organization. And we'll continue to look at, you know, other traditional measures like offshoring and utilization beyond, beyond AI productivity that I spoke about. So overall, we, we have, we have things we can work through for 2026.
Um, you know, fresh college graduates, uh, in in 2025, and, and we'll, we'll continue to look at that and, uh, that that does impact, uh, a long-term cost structure, uh, of the organization. And we'll continue to look at, uh, you know, other traditional measures like offshoring and utilization beyond beyond AI productivity that I spoke about. So, overall, we, we have, we have things, we can work through for 2026.
Thanks.
Thank you. Our next question comes from the line of tinging, wine with JP Morgan. Please proceed with your question.
Uh, we have a few levers apart from AI productivity. Um, and, and, and a couple of them are, are, are really, um, the continued, uh, improvement in, in, in pyramid. Uh, we, we hired 20,000, um, you know, fresh college graduates, uh, in, in 2025, and, and we'll, we'll continue to look at that. And, uh, that, that does impact, uh, the long-term cost structure, uh, of the organization. And we'll continue to look at, uh, you know, other traditional measures like offshoring and utilization beyond, beyond AI productivity that I spoke about. So, overall, we, we have, we have things we can work through for 2026.
Ravi Kumar: Thanks.
Jason Kupferberg: Thanks.
Thanks.
Operator: Thank you. Our next question comes from the line of Tien-tsin Huang with JP Morgan. Please proceed with your question.
Operator: Thank you. Our next question comes from the line of Tien-tsin Huang with JP Morgan. Please proceed with your question.
Thank you. All right.
Hi, good morning, thank you so much really strong, large deal activity again here uh in the fourth quarter. So I want to ask if if your confidence and your ability to grow off of that larger base.
Our attention 1 with JP Morgan, please proceed with your question.
Tien-Tsin Huang: Hi, good morning. Thank you so much. Really strong, large deal activity again here, in the fourth quarter. So I want to ask, your confidence in your ability to grow off of that larger base, in 2026 over 2025. How does the pipeline look for larger deals in 2026? And, any good line of sight into deal ramps being timely? Thanks.
Tien-Tsin Huang: Hi, good morning. Thank you so much. Really strong, large deal activity again here, in the fourth quarter. So I want to ask, your confidence in your ability to grow off of that larger base, in 2026 over 2025. How does the pipeline look for larger deals in 2026? And, any good line of sight into deal ramps being timely? Thanks.
Uh, in 26 over 25. How does the pipeline look for for larger deals in in 26 and um any good line of sight into deal ramps being timely. Thanks.
Hi, good morning, thank you so much really strong, large deal activity again here uh in the fourth quarter. So I want to ask if if your confidence and your ability to grow off of that larger base.
Thank you, tension for that question. Yeah, I think uh, we've had a great, uh, booking Squad at 9%. Why, and why TTM 5% um
Ravi Kumar: Thank you, Tien-tsin, for that question. Yeah, I think we've had a great bookings quarter, 9% YoY, TCV 5%. 50% increase in TCV on large deals for the full year, and 60% increase in TCV of large deals in Q4. We are very excited about the fact that our fixed price business now is almost 50%. I mean, you know, 3 years ago, that used to be 41 to 42%. So we can, in some ways, fixed price it, share the productivity of the clients, and actually pass on some of it to ourselves. We're keeping that. You know, we are one of the, we are probably the only player in our peer group which talks about code-assisted and, you know, autonomous software engineering.
Ravi Kumar: Thank you, Tien-tsin, for that question. Yeah, I think we've had a great bookings quarter, 9% YoY, TCV 5%. 50% increase in TCV on large deals for the full year, and 60% increase in TCV of large deals in Q4. We are very excited about the fact that our fixed price business now is almost 50%. I mean, you know, 3 years ago, that used to be 41 to 42%. So we can, in some ways, fixed price it, share the productivity of the clients, and actually pass on some of it to ourselves. We're keeping that. You know, we are one of the, we are probably the only player in our peer group which talks about code-assisted and, you know, autonomous software engineering.
Uh, in '26 over '25, how does the pipeline look for larger deals in '26, and um, any good line of sight into deal ramps being timely? Thanks.
Ravi Kumar: 32% of our code is AI-assisted. So we have now activated two swim lanes. In 2024, a lot of the large deals were productivity-led. Now we are seeing innovation-led, vector two, vector three, as I call it. We did $1.2 billion deals in Q4, so it was a record of sorts. We crossed $10 billion. That's a record of sorts. We have one $1 billion deal in Q4. We have five mega deals in the full year, and we have two mega deals in Q4. So we have a strong pipeline, and we have activated both the swim lanes, and we are starting to do transition of that work, and therefore we see a solid Q2 and Q3.
Ravi Kumar: 32% of our code is AI-assisted. So we have now activated two swim lanes. In 2024, a lot of the large deals were productivity-led. Now we are seeing innovation-led, vector two, vector three, as I call it. We did $1.2 billion deals in Q4, so it was a record of sorts. We crossed $10 billion. That's a record of sorts. We have one $1 billion deal in Q4. We have five mega deals in the full year, and we have two mega deals in Q4. So we have a strong pipeline, and we have activated both the swim lanes, and we are starting to do transition of that work, and therefore we see a solid Q2 and Q3.
50% increase in tcv on large deals for the full year and 60% increase in tcv of large deals in in quarter 4. And, uh, we are very excited about the fact that our fixed price business now is almost 50%. I mean, you know, 3 years ago, that used to be 41 to 42%. So we can in some ways, uh, fixed price. It share the productivity of the clients and actually pass on some to ourselves. We are keeping that, you know, we are 1 of the we are probably the only player in our peer Group, which talks about, uh, code assisted and um, you know, autonomous software engineering 30, 3 32, 32% of our uh code is um AI. Assisted. So we have now activated 2 swim lines um, in 2024, a lot of the large deals were productivity LED now we are seeing Innovation lead Vector to Vector 3, as I call it. Um, we did 1200 million dollar deals in in Q4.
So it was a record of ss, we crossed 10 billion dollars, that set a code of SS.
Thank you Duncan for that question. Yeah. I think uh we've had a great uh booking quarter 9% why, and why? TTM 5% um 50% increase in tcv on large deals for the full year and 60% increase in tcv of large deals in in quarter 4. And, uh, we are very excited about the fact that our fixed price business now is almost 50%. I mean, you know, 3 years ago, that used to be 41 to 42% so we can in some ways, uh, fixed price. It share. The productivity is our clients and actually pass on some of the to ourselves. We are keeping that, you know, we are 1 of the we are probably the only player in our peer Group, which talks about uh, code assisted and um uh, you know, autonomous software engineering, 30% 30 to 32% of our uh code is um AI. Assisted. So we have now activated 2 swim lines um, in 2024, a lot of the large deals were productivity.
That now we are seeing Innovation lead Vector to Vector 3, as I call it. Um, we did 12 hundred million dollar deals in, in Q4. So, it was a record of sorts. We crossed 10 billion dollars that set a c of s.
We have uh, 1 1 billion dollar deal in quarter 4, we have 5, uh, Mega deals uh, in the full year. And, uh, we have 2, Mega deals in quarter 4. So we have a strong Pipeline and we have activated, both the swim lanes. And, uh, we are starting to do Transition of that work and therefore we see a solid quarter 2 and quarter 3. In fact, uh, we uh, we see more active
Acceleration during the year of ramp up, as well as more deals on the ways. So, I'm very excited about the fact that this has become a Tailwind for us. AI is a Tailwind for us.
Ravi Kumar: In fact, we see more acceleration during the year of ramp up as well as more deals on the way. So I'm very excited about the fact that this has become a tailwind for us. AI is a tailwind for us.
Ravi Kumar: In fact, we see more acceleration during the year of ramp up as well as more deals on the way. So I'm very excited about the fact that this has become a tailwind for us. AI is a tailwind for us.
Not terrific. It's impressive. And so just to clarify, you mentioned that the Ravi or or Japanese. If you want to chime in just the confidence in the faster, sequential growth beyond the first
We have, uh, 1 1 billion dollar deal in quarter 4, we have 5, uh, Mega deals uh, in the full year. And, uh, we have 2, Mega deals in quarter 4. So we have a strong Pipeline and we activated, both the swim lanes. And, uh, we are starting to do Transition of that work and therefore we see a solid quarter 2 and quarter 3. In fact, uh, we, uh, we see more acceleration during the year of ramp up, as well as more deals on the ways. So, I'm very excited about the fact that this has become a Tailwind for us. AI is a Tailwind for us.
Tien-Tsin Huang: No, terrific. It's impressive. And so just to clarify, you mentioned it there, Ravi, or, or Jatin, if you want to chime in, just the confidence in the faster sequential growth beyond the first quarter being higher than the pattern in the last couple of years. So it sounds like that's really just what you see in, in terms of the large deals ramping and the timeliness of that?
Tien-Tsin Huang: No, terrific. It's impressive. And so just to clarify, you mentioned it there, Ravi, or, or Jatin, if you want to chime in, just the confidence in the faster sequential growth beyond the first quarter being higher than the pattern in the last couple of years. So it sounds like that's really just what you see in, in terms of the large deals ramping and the timeliness of that?
Quarter being higher than the pattern in the last couple of years. So, it sounds like, that's really just what you see in, in terms of the large deals, ramping and the timeliness of that.
No, it's terrific. It's impressive. And so, just to clarify, you mentioned either Ravi or—Japanese, if you want to chime in—just the confidence in the faster, sequential growth beyond the first...
Jatin Dalal: Sure. So, Tien-tsin, there are two factors at play there. One, of course, is a strong bookings that we are walking in, in 2026 with. And the second is there is some amount of seasonality between quarters also in 2026 compared to 2025. And, for example, in Q1, there are lower bill days in 2026 compared to the number of bill days that we had in Q1 in 2025, which automatically means that the sequential number improves in Q2 compared to Q1 in 2026. So these are the two factors that give us confidence that we can execute better sequential growth in the middle of the year, and that's what we have assumed in our guidance range.
Jatin Dalal: Sure. So, Tien-tsin, there are two factors at play there. One, of course, is a strong bookings that we are walking in, in 2026 with. And the second is there is some amount of seasonality between quarters also in 2026 compared to 2025. And, for example, in Q1, there are lower bill days in 2026 compared to the number of bill days that we had in Q1 in 2025, which automatically means that the sequential number improves in Q2 compared to Q1 in 2026. So these are the two factors that give us confidence that we can execute better sequential growth in the middle of the year, and that's what we have assumed in our guidance range.
Of the large deals, ramping and the timeliness of that.
Uh sure. So the thing is there are there are 2 factors at play there, 1 of course is the the is a strong. Um bookings that we are working in in 2026 with and uh in the second is there is some amount of seasonality between quarters also in 2026 compared to 25 and 20. For example, in q1, there are lower build Days. Inn 26 compared to the number of build days that we had in q1 in 2025, which automatically means that the sequential number uh, improves in quarter 2 compared to quarter 1, uh, in 2026. Uh, so these are the 2 factors that that give us confidence that, uh, that we can execute better sequential growth in the middle of the year. And that's what we assumed in our guidance range, including the ramp up of deals, uh, you know, which we have closed in quarter 4,
Understood. Well done on the deals here. Thank you.
Ravi Kumar: Including the ramp-up of deals, you know, which we have closed in Q4.
Ravi Kumar: Including the ramp-up of deals, you know, which we have closed in Q4.
Thank you.
BMO Capital markets, please. Proceed with your question.
Uh sure. So the thing is there are there are 2 factors at play there. 1 of course is the the is a strong. Um, booking set we are working in in 2026 with and uh, in the second is there is some amount of seasonality between quarters also in 2026 compared to 25 and 20. For example, in q1, there are lower build Days. Inn 26 compared to the number of buildings that we had in Cuba in 2025, which automatically means that the sequential number, uh, improves in quarter 2 compared to quarter 1, uh, in 2026. Uh, so these are the 2 factors that that give us confidence that uh, that we can execute better sequential growth in the middle of the year. And that's what we assumed in our guidance range, including the ramp up of deals, uh, you know, which we have closed in quarter 4,
Tien-Tsin Huang: Understood. Well done on all the deals here. Thank you.
Tien-Tsin Huang: Understood. Well done on all the deals here. Thank you.
Understood well done on another deal here. Thank you.
Hi, many. Thanks. I I wanted to ask about
Operator: Thank you. Our next question comes from the line of Keith Bachman with BMO Capital Markets. Please proceed with your question.
Operator: Thank you. Our next question comes from the line of Keith Bachman with BMO Capital Markets. Please proceed with your question.
The risk and opportunities of the fixed price.
Uh, or success based contracts that are now about 50% of total.
With BMO Capital markets, please proceed with your question.
Keith Bachman: Hi, many thanks. I wanted to ask about the risk and opportunities of the fixed price or success-based contracts that are now about 50% of total. What I'm trying to understand is your pricing. I think you're pricing these contracts on assumed cost curves that leverage new innovations, including AI. And I just want to understand how, you know, A, are the prices more aggressive today than they have been? B, how should investors think about the risk and the opportunities of overage and underage in terms of achieving those cost curves? In other words, are you sharing those risks with the customers? But if you could just speak to, you know, the changing nature of the economic risks associated with these success-based contracts?
Keith Bachman: Hi, many thanks. I wanted to ask about the risk and opportunities of the fixed price or success-based contracts that are now about 50% of total. What I'm trying to understand is your pricing. I think you're pricing these contracts on assumed cost curves that leverage new innovations, including AI. And I just want to understand how, you know, A, are the prices more aggressive today than they have been? B, how should investors think about the risk and the opportunities of overage and underage in terms of achieving those cost curves? In other words, are you sharing those risks with the customers? But if you could just speak to, you know, the changing nature of the economic risks associated with these success-based contracts?
Hi, many. Thanks. I I wanted to ask about
And what I'm trying to understand is your pricing, I think your price needs contracts on a soon cost curve.
The risk and opportunities of the fixed price.
That leverage new Innovations. Uh, including AI.
Uh, or success-based contracts that are now about 50% of total.
Be.
And what what I'm trying to understand is your pricing. I think your pricing these contracts on assume cost curves
How should investors think about their risk and the opportunities?
That leverage new innovations, including AI.
Um and I just want to understand how, you know, a is there more are? These are the prices more aggressive today than they have been B.
How should investors think about the risk and the opportunities?
Of overage and underage in terms of achieving those cost Curves. In other words, are you sharing those risk with the customers? But if you could just speak to, you know, the changing nature of the economic risks associated with these, uh, success based contracts.
Sure. So
Jatin Dalal: Sure. So, you know, there are various types of fixed-priced engagements, but essentially, I mean, they have one thing in common, is that the larger component of delivery risk resides with the service providers like us. And essentially, we underwrite a productivity in the beginning of the contract, and we deliver to that productivity to the customer, irrespective of whether we are able to achieve that outcome from a cost standpoint or not. The history of industry is that we always have found ways through new technological progress to be able to deliver it. Specifically, in light of the whole large deal momentum that Cognizant has been able to achieve, we have a very, I would say, very robust process of bid versus bid that we monitor every month.
Jatin Dalal: Sure. So, you know, there are various types of fixed-priced engagements, but essentially, I mean, they have one thing in common, is that the larger component of delivery risk resides with the service providers like us. And essentially, we underwrite a productivity in the beginning of the contract, and we deliver to that productivity to the customer, irrespective of whether we are able to achieve that outcome from a cost standpoint or not. The history of industry is that we always have found ways through new technological progress to be able to deliver it. Specifically, in light of the whole large deal momentum that Cognizant has been able to achieve, we have a very, I would say, very robust process of bid versus bid that we monitor every month.
Of overage and unders in terms of achieving those cost Curves. In other words, are you sharing those risks with the customers? But if you could just speak to ha, you know, the changing nature of the economic risks associated with these, uh, success based contracts.
You know, there are, there are various types of fixed price engagements, but essentially, uh, I mean, they have 1 thing in common is that, uh, the larger component of delivery risk resides with the service providers like us. And essentially, we are the right of productivity in the beginning of the contract and and and we deliver to that productivity uh to the customer uh irrespective of whether we are able to achieve that outcome from a cost standpoint or not. Uh, the history of industry is that we always have found ways uh through new technological progress, to to be able to deliver it.
Sure. So, uh, you know, the bye. Bye. Bye. You know, there are there are various types of fixed price engagements, but essentially, uh, I mean, they have 1 thing in common is that, uh, the larger component of delivery risk resides with the service providers like us. And essentially, we are the right to productivity in the beginning of the contract and and and we deliver to that productivity uh to the customer uh irrespective of whether we are able to achieve that outcome from a cost standpoint or not. Uh, the history of industry is that we always have found ways uh
Through new technological progress, to, to be able to deliver it.
specifically, in light of,
Specifically in light of light of the whole large deal, momentum that cognizant has been able to achieve. We have, uh, a very, uh, I would say very robust process of bid versus debt that we monitor every month. Uh, the performance of the of the deals that we have 1 and and how we are delivering our operating margin and revenue performance against those those promises.
Jatin Dalal: The performance of the deals that we have won and how we are delivering our operating margin and revenue performance against those promises. And I'm happy to share that we deliver on aggregate of the portfolio very close to the expected margins that we had planned, which means we are, in aggregate, not having any overrun or also not significant underrun. So overall, we are tracking to the budgeted goal for our customers as we go. And that we will continue to do. That is something that is crucial in times like this, when technology is shifting, and overall, we feel we are performing well.
Jatin Dalal: The performance of the deals that we have won and how we are delivering our operating margin and revenue performance against those promises. And I'm happy to share that we deliver on aggregate of the portfolio very close to the expected margins that we had planned, which means we are, in aggregate, not having any overrun or also not significant underrun. So overall, we are tracking to the budgeted goal for our customers as we go. And that we will continue to do. That is something that is crucial in times like this, when technology is shifting, and overall, we feel we are performing well.
And I'm happy to share that we we deliver on aggregate uh, uh, of the portfolio. Very close to the expected margins. That that we had planned, which means we are, we are in aggregate, not having any overrun or also, not significant endurance. So, overall we are, we are tracking to the to the budgeted goal, uh, for our customers as we go. Uh, and, and that we will continue to do. There is a, there is something that, uh, is crucial in, in times like this, when technology is Shifting and overall. We feel, we, we are in in, uh, performing well.
I just want to add add 2 quick uh, points to Jen. Uh, if you look at it,
in some ways, we are sharing the productivity, sharing the risk with our clients.
But we are actually.
Ravi Kumar: I just want to add two quick points to Jatin. If you look at it, in some ways, we are sharing the productivity, sharing the risk with our clients, but we are actually doubling down on execution. Look at our revenue per person and margin per person. It's gone up by 5%, trailing twelve months, 8% margin and 5% revenue, trailing twelve months, which essentially means we are able to share with our clients the productivity, win, you know, actually price to win and deliver to margins. That's our motto. And I think with this nonlinear opportunity, with the technology, you can, you can kind of be ahead of the curve and do that. The second, I would believe, which is a very important shift.
Ravi Kumar: I just want to add two quick points to Jatin. If you look at it, in some ways, we are sharing the productivity, sharing the risk with our clients, but we are actually doubling down on execution. Look at our revenue per person and margin per person. It's gone up by 5%, trailing twelve months, 8% margin and 5% revenue, trailing twelve months, which essentially means we are able to share with our clients the productivity, win, you know, actually price to win and deliver to margins. That's our motto. And I think with this nonlinear opportunity, with the technology, you can, you can kind of be ahead of the curve and do that. The second, I would believe, which is a very important shift.
Light of the whole large, still momentum that Cognizant has been able to achieve. We have a, a very, uh, I would say very robust process of bid versus debt that we monitor every month. Uh, the performance of the, of the deals that we have won and, and how we are delivering our operating margin and revenue performance against those, those problems. And I'm happy to share that we, we deliver on aggregate, uh, uh, of the portfolio, very close to the expected margins that, that we had planned, which means we are, we are in aggregate not having any overrun, or also not significant under. And so overall, we are, we are tracking to the, to the budgeted goal, uh, for our customers as we go. Uh, and, and that we will continue to do. There is a, there is something that, uh, is crucial in, in times like this, when technology is shifting and overall, we feel we, we are in, in, uh, performing well. I just want to add, add
Two quick points to Jatin. Uh, if you look at it,
In some ways, we are sharing the productivity, sharing the risk with our clients.
Doubling down on execution, look at our Revenue per person and margin per person. It's gone up by 5% trading, 12 months, 8% margin and 5% Revenue trailing 12 months which essentially means we are able to share with our clients as a productivity win.
But we are actually doubling down on execution, look at our Revenue per person and margin per person. It's gone up by 5% trading, 12 months, 8% margin and 5% Revenue trading 12 months which essentially means we are able to share with our clients, the productivity when
They'll you know actually price to win and deliver to margins, that's our Moto. And I think with this nonlinear opportunity with the technology you can, you can kind of be ahead of the curve and and and and, and do that. The second I would believe which is a very important shift.
historically, if you look at it, you know, go back to the 90s companies like ours, used to own the outcomes and we used to
Ravi Kumar: Historically, if you look at it, you know, go back to the nineties, companies like ours used to own the outcomes, and we used to price on outcomes. And then, you know, the enterprise software, either both on-prem and SaaS, and then the plumbing on the cloud, kind of abstracted layers of that value. Outcome-based was hard because there were so many people in the mix. Here we are, fast forward. We can own the outcomes. We can own the outcomes, we can make this a platform play, we can make it nonlinear cost and nonlinear revenue. And we can take over operations of companies and give them a service, which... That is what- that is the reason why our BPO business is actually growing at 9%. Why and why?
Ravi Kumar: Historically, if you look at it, you know, go back to the nineties, companies like ours used to own the outcomes, and we used to price on outcomes. And then, you know, the enterprise software, either both on-prem and SaaS, and then the plumbing on the cloud, kind of abstracted layers of that value. Outcome-based was hard because there were so many people in the mix. Here we are, fast forward. We can own the outcomes. We can own the outcomes, we can make this a platform play, we can make it nonlinear cost and nonlinear revenue. And we can take over operations of companies and give them a service, which... That is what- that is the reason why our BPO business is actually growing at 9%. Why and why?
they, you know, actually price to win and deliver to margins, that's our Moto. And I think with this nonlinear opportunity with the technology you can, you can kind of be ahead of the curve and and and and, and do that. The second I would believe which is a very important shift.
Uh, price on outcomes and then, you know, the enterprise software either, both on-prem and and SAS and then the plumbing on the cloud kind of abstracted layers of that value. Um, and, uh, outcome based was hard because there were so many people in the mix here, we have fast forward, we can own the outcomes.
The outcome-based was hard because there were so many people in the mix here. We have fast-forward; we can own the outcomes.
We can own the outcome. We can make this a platform play. We can make it nonlinear cost and nonlinear revenue and uh, we can take over operations of companies and give them a service, which that is what that is, the reason why our BPO business is actually growing at 9%, why. And why 9% of the BPO business growing? Because we are able to do that very well. We are able to, you know, deliver to outcomes on the value chain and, uh, share the benefits.
Ravi Kumar: 9% of the BPO business growing, because we are able to do that very well. We are able to, you know, deliver to outcomes, own the value chain, and share the benefits.
Ravi Kumar: 9% of the BPO business growing, because we are able to do that very well. We are able to, you know, deliver to outcomes, own the value chain, and share the benefits.
We can own the outcomes. We can make this a platform play. We can make it nonlinear cost and nonlinear revenue, and, uh, we can take over operations of companies and give them a service—which that is what that is, the reason why our BPO business is actually growing at 9%; why, and why 9% of the BPO business growing? Because we are able to do that very well. We are able to, you know, deliver to outcomes, own the value chain, and, uh, share the benefits.
Keith Bachman: Yeah, we thank you, Ravi. This sort of led into my next question, was durability of BPO. I think, you know, two years ago, many, including ourselves, had some concerns about, you know, what AI would do to BPO. It's been, I think, one of the more robust parts of the market, and it seems clients need help in setting AI into BPO. And my question is: How durable is this? In other words, once you get those processes established in BPO, enabled by AI, does that create longer-term headwinds, or is there enough momentum here that this is a multiyear tailwind or good growth within the context of BPO?
Keith Bachman: Yeah, we thank you, Ravi. This sort of led into my next question, was durability of BPO. I think, you know, two years ago, many, including ourselves, had some concerns about, you know, what AI would do to BPO. It's been, I think, one of the more robust parts of the market, and it seems clients need help in setting AI into BPO. And my question is: How durable is this? In other words, once you get those processes established in BPO, enabled by AI, does that create longer-term headwinds, or is there enough momentum here that this is a multiyear tailwind or good growth within the context of BPO?
Yeah. We thank you, Ravi, they sort of led into my next question was durability of BPO. Uh I I think you know, 2 years ago, many including ourselves had some concerns about the you know what AI would do to BPO. It's it's been I think 1 of the more robust parts of the market and it seems clients need help in setting AI into BPO. And my question is, how how durable is this? In other words, once you get those processes?
Established in BPO enabled by AI does that create longer term, headwinds? Or is there enough momentum here? That this is a multi-year?
Yeah. We thank you, Ravi, they sort of led into my next question was durability of BPO. Uh I I think you know, 2 years ago, many including ourselves had some concerns about the you know what AI would do to BPO. It's it's been I think 1 of the more robust parts of the market and it seems clients need help in setting AI into BPO. And my question is, how how durable is this? In other words, once you get those processes?
Uh, Tailwind or good growth within the context of BPO, you know, that's a great question. I mean, um, look,
Established in BPO enabled by AI does that create longer term, headwinds? Or is there enough momentum here? That this is a multi-year?
this is a total addressable span, which is 10 times or maybe 20 times more than text span because you're embedding technology data.
Ravi Kumar: You know, that's a great question. I mean, look, this is a total addressable spend, which is ten times or maybe twenty times more than tech spend, because you're embedding technology, data into process, and in recent times, machine learning and AI. You know, Cognizant has had 9% to 10% growth in BPO for 3 years in a row. And the reason why we have done so is because we have always been on the cutting edge. We think this is a longish tailwind, because operations of companies is a much bigger addressable spend, and we think we have an opportunity not just to transform, reinvent, reimagine flows in a company, we also have the ability to maintain them. Remember, you know, I think we are underestimating how much that reinvention will need. It's decades of work.
Ravi Kumar: You know, that's a great question. I mean, look, this is a total addressable spend, which is ten times or maybe twenty times more than tech spend, because you're embedding technology, data into process, and in recent times, machine learning and AI. You know, Cognizant has had 9% to 10% growth in BPO for 3 years in a row. And the reason why we have done so is because we have always been on the cutting edge. We think this is a longish tailwind, because operations of companies is a much bigger addressable spend, and we think we have an opportunity not just to transform, reinvent, reimagine flows in a company, we also have the ability to maintain them. Remember, you know, I think we are underestimating how much that reinvention will need. It's decades of work.
Uh, Tailwind or good growth within the context of BPO.
Data data into, um, into process. And and in in recent times machine learning and AI.
And BP of 3 years in a row.
Is so maybe 20 times more than text band because you're embedding technology data.
And the reason why we have done so is because we have always been on The Cutting Edge.
Data data into into process and and in in recent times machine learning and AI.
You know, Cognizant has had 9% to 10% growth in BPO for three years in a row.
And the reason why we have done so is because we have always been on The Cutting Edge.
We think this is a longish um Tailwind because operations of companies is a much bigger addressable spend and we think we have an opportunity not just to transform reinvent, reimagine flows in a company. We also have the ability to maintain that, you know, I think we are underestimating how much the reinvention will need its Decades of work. We are underestimating how much it needs to maintain? I mean this is a contextual uh, technology
It has to be grounded. It has to be situational.
Ravi Kumar: We are underestimating how much it needs to maintain. I mean, this is a contextual technology. It has to be grounded. It has to be situational. And we... You know, the effort needed to maintain and manage deterministic technology is less than the effort needed to maintain a probabilistic technology. So we have actually more work to do in maintaining than before. So I see this as a significant tailwind to our BPO business. We call it intuitive operations, you know, even before AI came into picture. So that's how we see this.
Ravi Kumar: We are underestimating how much it needs to maintain. I mean, this is a contextual technology. It has to be grounded. It has to be situational. And we... You know, the effort needed to maintain and manage deterministic technology is less than the effort needed to maintain a probabilistic technology. So we have actually more work to do in maintaining than before. So I see this as a significant tailwind to our BPO business. We call it intuitive operations, you know, even before AI came into picture. So that's how we see this.
We think this is a longish um Tailwind because operations of companies is a much bigger addressable spend and we think we have an opportunity not just to transform reinvent, reimagine flows in a company. We also have the ability to maintain that. Remember, you know, I think we are underestimating how much the reinvention will need its Decades of work. We are underestimating, how much it needs to maintain? I mean this is a contextual uh, technology.
You have to be grounded. It has to be situational.
And we you know the the the effort needed to maintain and manage deterministic technology is less than the effort needed to maintain a probabilistic technology. So we are actually more work to do in maintaining than before. So I I see this as
A significant Tailwind to our BPO business. We call it intuitive operations. And you know, even before AI came into picture. So that's how we see this. So
Okay, thank you gentlemen. Much appreciated.
And we you know the the the effort needed to maintain and manage deterministic technology is less than the effort needed to maintain a probabilistic technology. So we are actually more work to do in maintaining than before. So I I see this as
Thank you. Our next question comes from the line of Jim Schneider with Goldman Sachs, please proceed with your question.
Keith Bachman: Okay. Thank you, gentlemen. Much appreciated.
Keith Bachman: Okay. Thank you, gentlemen. Much appreciated.
A significant Tailwind to our BPO business. We call it intuitive operations, you know, even before AI came into picture. So that's how we see this.
Okay, thank you, gentlemen. Much appreciated.
Operator: Thank you. Our next question comes from the line of Jim Schneider with Goldman Sachs. Please proceed with your question.
Operator: Thank you. Our next question comes from the line of Jim Schneider with Goldman Sachs. Please proceed with your question.
Good morning. Thanks for taking my question. I was, you know, you you talked on the Health Sciences, uh, script about
Jim Schneider: ... Good morning. Thanks for taking my question. As you know, you talked on the health sciences script about the cost benefits to those companies sort of outweighing any kind of regulatory pressures you're seeing. Clearly, in the payer space, there's been a lot of debate about additional regulatory burdens and cost pressures. Just would love to understand your level of confidence in the relative growth for your health sciences segment this year relative to your full year guidance overall.
Jim Schneider: ... Good morning. Thanks for taking my question. As you know, you talked on the health sciences script about the cost benefits to those companies sort of outweighing any kind of regulatory pressures you're seeing. Clearly, in the payer space, there's been a lot of debate about additional regulatory burdens and cost pressures. Just would love to understand your level of confidence in the relative growth for your health sciences segment this year relative to your full year guidance overall.
Thank you. Our next question comes from the line of Jim Schneider with Goldman Sachs. Please proceed with your question.
Good morning. Thanks for taking my question. Uh, as you know you you talked to on the Health Sciences uh script about
the the costs uh benefits to those companies uh sort of outweighing any kind of regulatory pressures. You're seeing clearly in the pair space, there's been a lot of uh debate about additional regulatory burdens and cost pressures. Uh just would love to understand your level of confidence, in the relative growth for your health sciences segment. This year relative to your full year guidance overall.
Thank you.
6 Plus percent.
Um, where higher than our company average?
Ravi Kumar: Thank you. Our health sciences business grew at 6%+, way higher than our company average. It's a business where we probably are the number one player in the market. We have a platform with half a trillion dollars of transactions flowing through it. We have 200 million members. We have a moat, which is super differentiated. There is a lot of labor sitting around it, and I think with the uncertainty of regulation in the payer side, you will want to transiti- you will want to transform those layers of value around the TriZetto business and shift that money to care, because there is uncertainty around spend cycles. So we're seeing more traction with companies which are willing to apply agentic on, in and around the TriZetto platform.
Ravi Kumar: Thank you. Our health sciences business grew at 6%+, way higher than our company average. It's a business where we probably are the number one player in the market. We have a platform with half a trillion dollars of transactions flowing through it. We have 200 million members. We have a moat, which is super differentiated. There is a lot of labor sitting around it, and I think with the uncertainty of regulation in the payer side, you will want to transiti- you will want to transform those layers of value around the TriZetto business and shift that money to care, because there is uncertainty around spend cycles. So we're seeing more traction with companies which are willing to apply agentic on, in and around the TriZetto platform.
The the cost uh benefits to those companies uh sort of outweighing any kind of regulatory pressures. You're seeing clearly in the pair space, there's been a lot of uh debate about additional regulatory burdens and cost pressures. Uh just would love to understand your level of confidence, in the relative growth for your health sciences segment. This year relative to your full year guidance overall.
It's a business where we probably uh the number 1 player in the market.
Oh, great, thank you. Um, our Health Sciences business grew at, um, 6-plus percent.
We have a we have a platform with half a trillion dollars of transactions flowing through it.
Um, were higher than our company average?
We have 200 million members, we have a moat which is uh, super differentiated.
It's a business where we probably are the number 1 player in the market.
There is a lot of Labor sitting around it.
and I think with the uncertainty of regulation, in the pair side,
We have a we have a platform with half a trillion dollars of transactions flowing through it.
We have 200 million members, we have more, which is, uh, super differentiated.
You will want to transition, you will want to transform those layers of value around the Triad of business.
There is a lot of Labor sitting around it.
And I think, with the uncertainty of regulation, in the payer side,
And shift that money to care because there is uncertainty around spend Cycles.
So, we seeing more traction with companies which are willing to apply agent Tech.
uh, on
You will want to transition, you will want to transform those layers of value around the Triad of business.
And shift that money to care because there is uncertainty around spend cycles.
So, we're seeing more traction with companies that are willing to apply agent tech.
uh, on
Ravi Kumar: And we see this capture of these value pools, a new spend area for Cognizant. We have started to partner with Palantir, which I spoke about. We have a partnership with Microsoft. We have a partnership with AWS. We are doing work with Google Cloud. We're putting all these layers, and we are agentifying the labor attached to it so that the administrative costs are going to go down, and that money is going to be underwritten for care. So there is more hustle and more work because of the uncertainty and the need and the paranoia about transformation, so that this money is going to be moved to care.
Ravi Kumar: And we see this capture of these value pools, a new spend area for Cognizant. We have started to partner with Palantir, which I spoke about. We have a partnership with Microsoft. We have a partnership with AWS. We are doing work with Google Cloud. We're putting all these layers, and we are agentifying the labor attached to it so that the administrative costs are going to go down, and that money is going to be underwritten for care. So there is more hustle and more work because of the uncertainty and the need and the paranoia about transformation, so that this money is going to be moved to care.
in and around the tidal platform. And we see this capture of this value pools in new spend area for cognizant. We have, uh, started to partner with palliative, which I spoke about we have, uh, a partnership with Microsoft. We have a partnership with AWS, we are doing work with Google Cloud, we're putting all these layers and we're identifying
the labor attached to it. So that the admin
Will go down and that money is going to be under written for care. So there is more hustle and more work because of the uncertainty and the need and the paranoia about transformation. So that this money is going to be moved to care equally. There is a lot of work around.
Ravi Kumar: Equally, there is a lot of work around, you know, applying agentic to, say, bedside care or applying agentic to the life cycle of patients, all the way from before they start to get to a doctor to, you know, after they finish the visit to the doctor. In fact, some of the places I've mentioned, one or two examples, where we are able to take notes of doctors and nurses and agentify the whole thing and create productivity, high productivity for healthcare workers. So I see this as a tailwind. Because of the fact that there is uncertainty around regulation, we are actually going to see more transformation on the administrative layers, which will then transfer that value to care. Of course, there's also a part of life sciences and providers ecosystems there.
Ravi Kumar: Equally, there is a lot of work around, you know, applying agentic to, say, bedside care or applying agentic to the life cycle of patients, all the way from before they start to get to a doctor to, you know, after they finish the visit to the doctor. In fact, some of the places I've mentioned, one or two examples, where we are able to take notes of doctors and nurses and agentify the whole thing and create productivity, high productivity for healthcare workers. So I see this as a tailwind. Because of the fact that there is uncertainty around regulation, we are actually going to see more transformation on the administrative layers, which will then transfer that value to care. Of course, there's also a part of life sciences and providers ecosystems there.
Area for Cognizant. We have, um, started to partner with Palliative, which I spoke about. We have a partnership with Microsoft. We have a partnership with AWS. We are doing work with Google Cloud. We're putting all these layers, and we're identifying the labor attached to it so that the administrative costs are going to go down and that money is going to be underwritten for care. So there is more hustle and more work because of the uncertainty, and the need, and the paranoia about transformation. So that this money is going to be moved to care equally. There is a lot of work.
You know, applying agentic to say bedside, care or applying agentic to uh, the life cycle of, uh, patients um, all the way from before they start to get to a doctor to, you know, after they finish the visit to, the doctor doctor. In fact, some of the places I've mentioned 1 or 2 examples, where we are able to take notes of, uh, doctors and nurses, and identify the whole thing and and create productivity, High productivity for healthcare workers. So I, I see this as a Tailwind
Because of the fact that there is uncertainty around regulation, we are actually going to see more more transformation on the uh, on on the administrative layers, which will, then transfer, that value to care.
You know, applying agentic to say bedside, care or applying agentic to uh, the life cycle of patients, um, all the way from before they start to get to a doctor to, you know, after they finish the visit to, the doctor doctor. In fact, some of the places I've mentioned 1 or 2 examples, where we are able to take notes of, uh, doctors and nurses, and identify the whole thing and and create productivity, High productivity for healthcare workers. So I, I see this as a Tailwind
Because of the fact that there is uncertainty around regulation, we are actually going to see more and more transformation on the, uh, on the administrative layers, which will then transfer that value to care.
Ravi Kumar: And remember, the regulatory pressure is only on Medicaid and Medicare. It's not on commercial healthcare. But having said that, I think that uncertainty provides an opportunity to constantly innovate and transform, and also to adhere to new regulatory norms, using technology to adhere to new regulatory norms.
Ravi Kumar: And remember, the regulatory pressure is only on Medicaid and Medicare. It's not on commercial healthcare. But having said that, I think that uncertainty provides an opportunity to constantly innovate and transform, and also to adhere to new regulatory norms, using technology to adhere to new regulatory norms.
um, constantly innovate and transform and also to adhere to new regulatory Norms using technology to adapt to new regulatory norms,
Of course, there's also a part of life sciences and providers ecosystems there. Um, and and remember the, the regulatory pressure is only on Medicaid and Medicare, it's not on Commercial. Um, Healthcare. But having said that, I think that uncertainty provides an opportunity to um constantly, innovate and transform and also to adhere to new regulatory Norms using technology to adapt to new regulatory norms.
Jim Schneider: Thank you. And then maybe as a follow-up, you sort of discussed many things that are sort of impacting growth margins at this point, whether that be the kind of outcome-based pricing, the fixed pricing, and also the pyramid. Can you maybe talk about when... Do you see line of sight to sort of gross margin inflecting on a year-over-year basis at some point during the course of this year? Thank you.
Jim Schneider: Thank you. And then maybe as a follow-up, you sort of discussed many things that are sort of impacting growth margins at this point, whether that be the kind of outcome-based pricing, the fixed pricing, and also the pyramid. Can you maybe talk about when... Do you see line of sight to sort of gross margin inflecting on a year-over-year basis at some point during the course of this year? Thank you.
Thank you, and, and then maybe as a follow-up, uh, you, you sort of discussed, many things that are sort of impacting gross margins. At this point, whether that be, uh, the the the kind of outcome based, uh, pricing the fixed pricing. And also the pyramid can maybe talk, uh, about when do you see line of sight to sort of gross margin, uh, inflicting on a year-over-year basis, uh, at some point during the the course of this year, thank you.
Thank you, and, and then maybe as a follow-up, uh, you, you sort of discussed, many things that are sort of impacting gross margins. At this point, whether that be, uh, the the the kind of outcome based pricing the fixed pricing. And also the pyramid can maybe talk uh, about when do you see line of sight to sort of gross margin uh inflicting on a year-over-year basis. Uh at some point uh during the the course of this year. Thank you.
Jatin Dalal: Yeah. So, Jim, we'll, I mean, I, we have guided for the overall operating margin line. I don't want to guide at both the lines, but our endeavor would be to strive to reach that improvement in gross margin line, too. As I've shared before, 2025 doesn't worry me because I know this, our core margins have remained protected. The dilution that you see in 2025 is coming predominantly because of WellCare, which has a structurally more onsite-centric work, and therefore, it is not about lower profitability. But since you add a business which is more onsite-centric, it is bound to have a lower gross margin, as you know. So it is not, it is just a portfolio which has a particular characteristic which got added to the larger portfolio.
Jatin Dalal: Yeah. So, Jim, we'll, I mean, I, we have guided for the overall operating margin line. I don't want to guide at both the lines, but our endeavor would be to strive to reach that improvement in gross margin line, too. As I've shared before, 2025 doesn't worry me because I know this, our core margins have remained protected. The dilution that you see in 2025 is coming predominantly because of WellCare, which has a structurally more onsite-centric work, and therefore, it is not about lower profitability. But since you add a business which is more onsite-centric, it is bound to have a lower gross margin, as you know. So it is not, it is just a portfolio which has a particular characteristic which got added to the larger portfolio.
Yep.
So, I mean, I I, we've guided for the overall operating margin, um, line, I, I don't want to guide at both the lines but our Endeavor would be to to, to strive to reach that Improvement, uh, in gross margin line, too. It as I've shared before, 2025 doesn't worry me. Because I know this, a core margins have remained protected the dilution that you see in 2025 is coming predominantly because of Belen, which is
Yep. So so Jim will, I mean, I I we have guided for the overall operating margin, um, line. I don't want to guide at both the lines but our Endeavor would be to to, to strive to reach that Improvement, uh, in gross margin line, too. It as I've shared before, 2025 doesn't worry me. Because I know this, a core margins have remained protected, the dilution that you see in 2025 is coming predominantly because of Belen, which has a structurally more on-site Centric, work. And and therefore, it is not about lower profitability, but since you add a business, which is more on-site Centric, it is, it is bound to have a lower growth margin as you know, so it is, it is not, uh, it is just a portfolio which has which has a particular characteristic which you got added to the larger portfolio.
Jatin Dalal: That's one reason. The second reason is really the higher bonus payout, which I think is a good thing for our employees. I know we are protected and sustained the margin in 2025. We will work towards, of course, improving them in future.
Jatin Dalal: That's one reason. The second reason is really the higher bonus payout, which I think is a good thing for our employees. I know we are protected and sustained the margin in 2025. We will work towards, of course, improving them in future.
Ravi Kumar: I just want to add two quick things here. Look, we are broadening the pyramid. We have a thesis that the value is actually going to be more at the bottom with higher productivity. Last year, we added more school graduates than the previous year. This year, we're going to add more school graduates than the previous year. So that's going to give a tailwind to it. Our productivity sharing with our clients and how much we are going to keep back, which is, you know, the 5% revenue per person and 8% revenue margin per person, that's going to help. And, you know, good discipline, operating discipline has also helped. So there is tailwind on it, and we are not worried about keeping our expansive margins for 2026 and beyond.
Ravi Kumar: I just want to add two quick things here. Look, we are broadening the pyramid. We have a thesis that the value is actually going to be more at the bottom with higher productivity. Last year, we added more school graduates than the previous year. This year, we're going to add more school graduates than the previous year. So that's going to give a tailwind to it. Our productivity sharing with our clients and how much we are going to keep back, which is, you know, the 5% revenue per person and 8% revenue margin per person, that's going to help. And, you know, good discipline, operating discipline has also helped. So there is tailwind on it, and we are not worried about keeping our expansive margins for 2026 and beyond.
That's 1 reason and the second reason is really the higher bonus payout, which I think is is a good thing for our employees. So I I know we have protected and and sustained the margin in 25. Uh, we will work towards, of course, improving them in future. I just want to add 2 quick things here. Look, we are broadening the pyramid. We have, we have a thesis that the value is actually going to be more on more at the bottom with higher productivity. Last year, we added more school graduates than the previous year this year. We're going to add more school graduates in the previous year. So that's going to give a Tailwind to it. Our productivity sharing with our clients and how much we are going to keep back, which is, you know, the 5% Revenue per person and 8% Revenue margin per person that's going to help.
Yeah, the structurally more on-site Centric, work and and therefore, it is not about lower profitability, but since you add a business, which is more on-site Centric, it is, it is bound to have a lower gross margin as you know, so it is, it is not, uh, it is just a portfolio, uh, which has which has a particular characteristics which have got added to the larger portfolio. That's 1 reason and the second reason is really the higher bonus payout which I think is is a good thing for our employees. So I I know we have protected and and sustained the margin in 205. Uh, we will work towards, of course, improving them in future. I just want to add 2 quick things here. Look, we are broadening the pyramid. We have, we have a thesis that the value is actually going to be more on more at the bottom with higher productivity. Last year, we added more school graduates than the previous year this year. We're going to add more school graduates in the previous year. So that's going to give a Tailwind to it. Our productivity sharing with our clients and how much we are going to keep back, which is, you know, the 5% Revenue per person and 8%.
Margin per person, that's going to help.
And you know, good, you know, good, uh, discipline, operating discipline has also helped, so I there is Tailwind on it. And, uh, we are not, um, worried about keeping our expensive margins for 2026 and and Beyond.
Thank you.
Thank you. Our next question comes from the line of Brian Bergin with TD Cowen. Please proceed with your question.
And you know, good, you know, good, uh, discipline—operating discipline—has also helped. So, there is tailwind on it. And, uh, we are not, um, worried about keeping our expense margins for 2026 and beyond.
Jim Schneider: Thank you.
Jim Schneider: Thank you.
Thank you.
Operator: Thank you. Our next question comes from the line of Brian Bergen with TD Cowen. Please proceed with your question.
Operator: Thank you. Our next question comes from the line of Brian Bergen with TD Cowen. Please proceed with your question.
Thank you. Our next question comes from the line of Brian Bergin with TD Cowen. Please proceed with your question.
Brian Bergen: Hi, guys. Good morning. Thank you. Wanted to start with just kind of a bookings to growth question. So can you help bridge the ACV growth performance in 25 to your 26 growth guide? I'm just curious how you're factoring things like pipeline diversion and, at really, at the midpoint of the range, as well as things like short-term work. Can you detail that first? And then I'll ask my follow-up here. On the margin front, just SG&A, you've driven meaningful savings here in 25. You've actually held the dollar level flat for, like, three years. Understanding it wasn't optimized before, I'm just thinking, how much more meaningful room do you have in that SG&A line to continue to help you?
Bryan Bergin: Hi, guys. Good morning. Thank you. Wanted to start with just kind of a bookings to growth question. So can you help bridge the ACV growth performance in 25 to your 26 growth guide? I'm just curious how you're factoring things like pipeline diversion and, at really, at the midpoint of the range, as well as things like short-term work. Can you detail that first? And then I'll ask my follow-up here. On the margin front, just SG&A, you've driven meaningful savings here in 25. You've actually held the dollar level flat for, like, three years. Understanding it wasn't optimized before, I'm just thinking, how much more meaningful room do you have in that SG&A line to continue to help you?
Hi guys. Good morning, thank you. Uh, wanted to start with just kind of a bookings to growth question. So can you help bridge the? The ACV growth performance in 25 to your 26, growth guide, just curious how your factoring things, like pipeline conversion. And um, at really the midpoint of the range as well as things like short term work, uh, give me detail that first and then I'll ask my follow-up.
Here on the margin front, just that's Q&A, you've driven meaningful savings here in in 25. Uh, you've actually held the dollar level flat for like 3 years. Understanding it was an optimized before. I'm just thinking how much more meaningful room do you have in that sgna line to continue to help you?
Ravi Kumar: Yeah. So on ACV, definitely, we saw some amount of softness in Q4, but I would also characterize that with the bundling of smaller deals being given out as consolidated contracts, and therefore you see a significant increase in TCV of large deals, which corresponds to that shrinkage for the smaller deals. There's a sort of industry dynamic that we see in times like this. So while that is definitely a data point, but it is not something that is a challenge from a growth standpoint. On your... Sorry, can you just repeat your second question?
Ravi Kumar: Yeah. So on ACV, definitely, we saw some amount of softness in Q4, but I would also characterize that with the bundling of smaller deals being given out as consolidated contracts, and therefore you see a significant increase in TCV of large deals, which corresponds to that shrinkage for the smaller deals. There's a sort of industry dynamic that we see in times like this. So while that is definitely a data point, but it is not something that is a challenge from a growth standpoint. On your... Sorry, can you just repeat your second question?
Optimized before. I'm just thinking, how much more meaningful room do you have in that SG&A line to continue to help you?
Yeah. So, so on, on, on.
PC we uh, definitely we we
Yeah. So, so on on, on ACV? Uh, definitely, we, we saw some amount of softness in quarter 4, but I would, I would also characterize that with the bundling of, of smaller deals being, uh, given out as Consolidated, uh, contracts. And therefore, you see, uh, a significant increase in TCB of large deals, which corresponds to that shrinkage at for the smaller deals that I that's a, there's a sort of a industry Dynamic that we see in times like this. So, while while that is definitely a data point, but it is not something that that, uh, that is a, that is a challenge from the growth standpoint, um, on your uh, sorry, can you just repeat a second question?
Yeah, just on sgna. So you you've done a great job there, right? For a couple of years. I'm just curious how much more room you have to optimize That Base to continue to help if gross margin isn't going to stabilize sooner.
Brian Bergen: Yeah, just on SG&A. So you, you've done a great job there, right, for a couple of years. I'm just curious how much more room you have to optimize that base to continue to help if gross margin isn't gonna stabilize sooner.
Bryan Bergin: Yeah, just on SG&A. So you, you've done a great job there, right, for a couple of years. I'm just curious how much more room you have to optimize that base to continue to help if gross margin isn't gonna stabilize sooner.
Sum amount of softness in quarter 4, but I would, I would also characterize that with the bundling of, of smaller deals being, uh, given out as Consolidated, uh, contracts. And therefore, you see, uh, a significant increase in TCB of large deals, which corresponds to that finger at for the smaller deals and I that's a, there's a sort of a industry Dynamic that we see in times like this. So, while while that is definitely a data point, but it is not something that that, uh, that is a, that is a challenge from the growth standpoint, um, on your uh, sorry, can you just repeat your second question?
Ravi Kumar: SG&A continues to be an area of focus for us. So while we have done a good job in 2025 and 2024, so two years in a row, but that's that has now additional opportunity in form of the deployment of AI in the corporate work that we do. So certainly, we will continue to push that in 2026, too.
Ravi Kumar: SG&A continues to be an area of focus for us. So while we have done a good job in 2025 and 2024, so two years in a row, but that's that has now additional opportunity in form of the deployment of AI in the corporate work that we do. So certainly, we will continue to push that in 2026, too.
Yeah, just don't sgna. So you've done a great job there, right, for a couple of years. I'm just curious how much more room you have to optimize that base to continue to help if gross margin isn't going to stabilize sooner.
Sgna continues to be an area of focus for us. So while we have done a good job in 25 and 24, so 2 years in a row but but that's uh, that has now additional, uh, opportunity in form of the, the deployment of AI in in the in the corporate world that we do. So certainly, we will continue to push that in 2026 too.
All right. Thank you.
Thank you. Our next question, comes from line of James faucet with Morgan Stanley. Please proceed with your question.
Is sgma continues to be an area of focus for us. So while we have done a good job in 25 and 24 so 2 years in a row but but that's uh, that has now additional, uh, opportunity in form of the, the deployment of AI in in the in the corporate world that we do. So certainly, we will continue to push that in 2026 too.
Brian Bergen: All right. Thank you.
Bryan Bergin: All right. Thank you.
All right. Thank you.
Operator: Thank you. Our next question comes from the line of James Faucette with Morgan Stanley. Please proceed with your question.
Operator: Thank you. Our next question comes from the line of James Faucette with Morgan Stanley. Please proceed with your question.
Thank you so much. Just want to ask a couple of quick, follow-up questions on near-term.
James Faucette: Thank you so much. Just wanted to ask a couple of quick follow-up questions. On near-term activity and sales engagement, I think you've mentioned a little bit of softness there, at least in the fourth quarter. Can you just give a little more color there? Where were you seeing that? Is it just in near-term bookings? And how are you feeling about the potential for discretionary work to come back? I know that that's been something that everybody's been looking forward to coming back a little bit more aggressively, and clearly, you're doing well in kind of the larger deals, but just wondering about kind of more of this faster term business.
James Faucette: Thank you so much. Just wanted to ask a couple of quick follow-up questions. On near-term activity and sales engagement, I think you've mentioned a little bit of softness there, at least in the fourth quarter. Can you just give a little more color there? Where were you seeing that? Is it just in near-term bookings? And how are you feeling about the potential for discretionary work to come back? I know that that's been something that everybody's been looking forward to coming back a little bit more aggressively, and clearly, you're doing well in kind of the larger deals, but just wondering about kind of more of this faster term business.
Thank you. Our next question, comes from line of James faucet with Morgan Stanley. Please proceed with your question.
Engagement. I think you've mentioned a little bit of of um softness or at least in the fourth quarter, can you?
Thank you so much. Just wanted to ask a couple of quick, follow-up questions.
On near-term.
Activity and sales engagement, and I think you've mentioned a little bit of softness, or at least in the fourth quarter. Can you just
Just give a little more color there. Where were you seeing that? Is it just in near-term? Bookings. And and how are you feeling about, um, the potential for discretionary work, uh, to to come back? I, I know that that's been something that has been, everybody's been looking forward to to coming back a little bit more aggressively and clearly you're doing well in in kind of the larger deals. But just wondering about kind of more of the, this faster term business.
Yeah. So, you know
We'll continue to.
I mean, if you want to share productivity with clients,
Ravi Kumar: Yeah. So, you know, look, we continue to see more large deal momentum. I mean, if you want to share productivity with clients, and win and use the process of consolidation, wallet share swap, that's a phenomenal opportunity. Innovation levers are trying to kick in now. That's going to help us on smaller deals and discretionary. Look at financial services. We did 9%+ Q4, and we did 7%+ for the full year. Financial services is a lot of discretionary. And it's our largest vertical. And financial services performance in 2025 is the best we have had since 2018. So it is actually a good tailwind. I think there's gonna be... As the pivot for AI shifts significantly from productivity to innovation, we're gonna see more discretionary flowing in.
Ravi Kumar: Yeah. So, you know, look, we continue to see more large deal momentum. I mean, if you want to share productivity with clients, and win and use the process of consolidation, wallet share swap, that's a phenomenal opportunity. Innovation levers are trying to kick in now. That's going to help us on smaller deals and discretionary. Look at financial services. We did 9%+ Q4, and we did 7%+ for the full year. Financial services is a lot of discretionary. And it's our largest vertical. And financial services performance in 2025 is the best we have had since 2018. So it is actually a good tailwind. I think there's gonna be... As the pivot for AI shifts significantly from productivity to innovation, we're gonna see more discretionary flowing in.
Give a little more color there. Where were you seeing that? Is it just in near-term? Bookings. And and how are you feeling about, um, the potential for discretionary work, uh, to to come back? I, I know that that's been something that has been everybody's been looking forward to to coming back a little bit more aggressively and clearly you're doing well in in kind of the larger deals. But just wondering about kind of more of the, this faster term business.
Yeah. So, you know
We'll continue to see.
if you want to share productivity with clients,
Uh, and when and use the process of consolidation, wallet ships, swap, that's a phenomenal opportunity. Uh, Innovation, levers are trying to kick in now, that's going to help us on smaller deals and discretionary, look at Financial Services, we did 9 plus percent quarter 4 and uh, we did 7 plus percent for the full year. Financial Services is a lot of discretionary. Uh, so. So and it's our largest vertical and financial services performance in 2025 is the best we have had since 2018.
Uh, and when and use the process of consolidation, wallet ships, swap, that's a phenomenal opportunity. Uh, Innovation, levers are trying to kick in now, that's going to help us on smaller deals and discretionary, look at Financial Services, we did 9 plus percent quarter 4 and uh, we did 7 plus percent for the full year Financial
This is a lot of discretionary.
Uh, so so and it's our largest vertical and financial services performance in 2025 is the best we have had since 2018.
Ravi Kumar: There is a talk of physical AI, which is now starting to hit manufacturing and automotive and, aerospace and industries of that kind. That will also, that will also create, opportunity. As the AI, AI, experiments will start to go into, you know, production, you're gonna see discretionary new value pools opening up. So overall, I think financial services is a positive news, and, it's, it's, it's one of our most cutting-edge industries and the highest exposure, so, the others will follow. So I do see the unlock. Of course, there are. The macro has to support for the acceleration, and, you know, for discretionary, macro has to support. What I'm not worried about is, you know...
Ravi Kumar: There is a talk of physical AI, which is now starting to hit manufacturing and automotive and, aerospace and industries of that kind. That will also, that will also create, opportunity. As the AI, AI, experiments will start to go into, you know, production, you're gonna see discretionary new value pools opening up. So overall, I think financial services is a positive news, and, it's, it's, it's one of our most cutting-edge industries and the highest exposure, so, the others will follow. So I do see the unlock. Of course, there are. The macro has to support for the acceleration, and, you know, for discretionary, macro has to support. What I'm not worried about is, you know...
So it is actually a good Tailwind. I think there's going to be as as, as the pivot for AI shifts significantly from productivity to Innovation. We're going to see more discretionary flowing in. There is a talk of physical AI, which is now starting to hit manufacturing and automotive and uh, Aerospace and industries of that kind. That will also that will also create the opportunity as the ai ai. Uh, experiments will start to go into uh, you know uh production you're going to see discretionary new value, pools, opening up. Um so overall I think Financial Services is a positive news and uh it's it's it's 1 of our most Cutting Edge Industries and the highest exposure. So uh the others will follow. So I do see the unlock. Of course, there are the macro has to support for the acceleration. Uh, you know, for discretionary macro has to
So it is actually a good Tailwind. I think there's going to be as as, as the pivot for AI shifts significantly from productivity to Innovation. We're going to see more discretionary flowing in. There is a talk of physical AI, which is now starting to hit manufacturing and automotive and uh, Aerospace and industries of that kind. That will also that will also create the opportunity as the ai ai. Uh, experiments will start to go into uh, you know uh production you're going to see discretionary new value, pools, opening up. Um so overall I think Financial Services is a positive news and uh it's it's it's 1 of our most Cutting Edge Industries and the highest exposure. So uh the others will follow. So I do see the unlock. Of course, there are the macro has to support for the acceleration. Uh, you know, for discretionary macro has to
Ravi Kumar: Actually, I would say if the AI advances have to trickle drift to the businesses, I would actually believe that, that is actually going to support the discretionary to come back. It's going to be a catalyst. It's going to trigger a CapEx cycle on enterprises to drift that value, and it will flow through to us. So that's, that's how I'm seeing it. So financial services is a starting point, which has already happened. The others will follow.
Ravi Kumar: Actually, I would say if the AI advances have to trickle drift to the businesses, I would actually believe that, that is actually going to support the discretionary to come back. It's going to be a catalyst. It's going to trigger a CapEx cycle on enterprises to drift that value, and it will flow through to us. So that's, that's how I'm seeing it. So financial services is a starting point, which has already happened. The others will follow.
Support what I'm not worried about is. Um, you know, actually I would say if the AI advances have to trickle drift to the businesses, I would actually believe that, uh, that is actually going to support the discretionary to come back. It's going to be a catalyst. It's going to trigger a capex cycle on on, uh, uh on uh, Enterprises to drift that value and uh, it will flow through to us. So that's, that's how I'm seeing
So Financial Services is a starting point which has already happened, the others will follow.
James Faucette: Yeah. Thanks for pointing out financial services. That, that stood out to us as well. And then just quickly, I know you gave a quick summary of the work that you're doing exploring the India listing. Can you just give us a rough idea of what you're thinking about in terms of timeframe or when at least we should be able to put together a calendar and timeframe list? I know that's a key concern or at least thought for a lot of investors.
James Faucette: Yeah. Thanks for pointing out financial services. That, that stood out to us as well. And then just quickly, I know you gave a quick summary of the work that you're doing exploring the India listing. Can you just give us a rough idea of what you're thinking about in terms of timeframe or when at least we should be able to put together a calendar and timeframe list? I know that's a key concern or at least thought for a lot of investors.
Support what I'm not worried about is. Um, you know, actually I would say if the AI advances have to trickle drift to the businesses, I would actually believe that, uh, that is actually going to support the discretionary to come back. It's going to be a catalyst. It's going to trigger a capex cycle on on, uh, uh, on uh, Enterprises to drift that value and, uh, it will flow through to us. So that's, that's how I'm seeing it. So Financial Services is the starting point, which is already happened. The others will follow.
Yeah. Thanks for pointing out financial services that that stood out to us, as well. And then just quickly. I, I know you gave a a quick summary of the work that you're doing, um, exploring the India listing. Can you just give us a rough idea of what you're thinking about in terms of time, frame? Or or when at least we, we should be able to put together a a
A, a calendar and, and time frame list. Um, I know that's a, a key concern or, or at least thought for a lot of investors,
You're thinking about in terms of timeframe, or when at least we should be able to put together a— a...
Ravi Kumar: Yeah. So as I mentioned in the opening remarks, we continue to make progress. We are engaged with our advisors. At this juncture, we are still thinking through the decision, the regulatory framework, and therefore, the decision around the imminent secondary, sorry, primary offering and secondary listing. At some point, we should be able to come back and tell you more about this, but at this juncture, I think it's a continued progress, would be what I would suggest as an update from previous quarter to this quarter. And we have had constructive discussions with the regulators.
Ravi Kumar: Yeah. So as I mentioned in the opening remarks, we continue to make progress. We are engaged with our advisors. At this juncture, we are still thinking through the decision, the regulatory framework, and therefore, the decision around the imminent secondary, sorry, primary offering and secondary listing. At some point, we should be able to come back and tell you more about this, but at this juncture, I think it's a continued progress, would be what I would suggest as an update from previous quarter to this quarter. And we have had constructive discussions with the regulators.
Calendar, and, and time frame list. Um, I know that's a key concern or, or at least thought for a lot of investors,
Yeah. So, as I mentioned, in the opening remarks, we we continue to make progress. Uh, we are engaged with with our advisors, uh, at at this juncture, we are still thinking through the decision, uh, the regulatory framework, and therefore the decision around the, uh, around the, the imminent, uh, um, a secondary, uh, sorry, primary offering and secondary listing. And uh,
At some point, we should be able to come back and tell you more about this. But at this juncture I think, uh, it's it's a it's a continued progress would be what I would suggest as as uh, as an update from previous quarter to this quarter and the and the uh
Yeah. So, as I mentioned, in the opening remarks, we we continue to make progress. Uh, we are engaged with with our advisors, uh, at at this juncture, we are still thinking through the decision, uh, the regulatory framework, and therefore the decision around the, uh, around the, the imminent, um, a secondary, uh, sorry, primary offering and secondary listing. And uh,
And we have had constructive uh um discussions with The Regulators. Uh uh we're continuing to do what is right for our shareholders and continue to look for. More investors to be a part of our uh Growth Store.
At some point, we should be able to come back and tell you more about this. But at this juncture I think, uh, it's it's a it's a continued progress would be what I would suggest as as uh, as an update from previous quarter to this quarter and the and the uh
Ravi Kumar: So, we're continuing to do what is right for our shareholders and continue to look for more investors to be a part of our growth story. So, we'll keep you updated on that. Maybe we'll take one more.
Ravi Kumar: So, we're continuing to do what is right for our shareholders and continue to look for more investors to be a part of our growth story. So, we'll keep you updated on that. Maybe we'll take one more.
So um, so we'll keep you updated on that. Maybe we'll take 1
And we have had constructive uh uh discussions with The Regulators. Uh uh we're continuing to do what is right for our shareholders and continue to look for. More investors to be a part of our uh growth story.
Thank you. Our final question. Today comes from the line of Rod Baja with deep dive equity research, please. Proceed with your question.
So um, so we'll keep you updated on that. Maybe we'll take 1
Operator: Thank you. Our final question today comes from the line of Rod Bourgeois with Deep Dive Equity Research. Please proceed with your question.
Operator: Thank you. Our final question today comes from the line of Rod Bourgeois with Deep Dive Equity Research. Please proceed with your question.
Rod Bourgeois: Okay, great. I'll just ask one, given the time here. Hey, you already addressed the question about AI being applied to ERP implementation. There's also new Claude plugins geared towards workflow automation. So I wanted to ask to what extent you see such workflow automation abilities impacting your market opportunity, and to what extent you already have a partnership also in that area. Thank you, Ravi.
Rod Bourgeois: Okay, great. I'll just ask one, given the time here. Hey, you already addressed the question about AI being applied to ERP implementation. There's also new Claude plugins geared towards workflow automation. So I wanted to ask to what extent you see such workflow automation abilities impacting your market opportunity, and to what extent you already have a partnership also in that area. Thank you, Ravi.
Thank you. Our final question. Today comes from the line of Rod Baja with deep dive equity research, please. Proceed with your question.
Such workflow automation abilities, impacting your Market opportunity and and to to what extent you already have a partnership also in that area. Thank you Robbie.
Thank you Rod. Look, uh, we announced a partnership with anthropic um, uh, last year late last year.
The more AI can do.
The more is the opportunity for us.
Ravi Kumar: Thank you, Rod. Look, we announced a partnership with Anthropic, last year, late last year. The more AI can do, the more is the opportunity for us. It's very simple. I mean, let's talk about the plug, the plugin to legal. How much software has been implemented in legal? There is so much paralegal work happening. In fact, we work for a professional services and a legal services company, where we are agentifying all their paralegal work. That never existed before. Now, there's a lot of labor around classical software, and all that labor needs more productivity. If you want to drive that value to higher productivity to the workers in every function of a company, AI can be that catalyst.
Ravi Kumar: Thank you, Rod. Look, we announced a partnership with Anthropic, last year, late last year. The more AI can do, the more is the opportunity for us. It's very simple. I mean, let's talk about the plug, the plugin to legal. How much software has been implemented in legal? There is so much paralegal work happening. In fact, we work for a professional services and a legal services company, where we are agentifying all their paralegal work. That never existed before. Now, there's a lot of labor around classical software, and all that labor needs more productivity. If you want to drive that value to higher productivity to the workers in every function of a company, AI can be that catalyst.
Okay, great, and I'll just ask one, given the time here. Hey, you already addressed the question about AI being applied to ERP implementation. There's also new Claude plugins geared towards workflow automation. So I wanted to ask, to what extent you see such workflow automation abilities impacting your market opportunity, and to what extent you already have a partnership also in that area. Thank you, Ravi.
It's very simple. I mean, let's take about the the plug-in to Legal
Thank you, Rod. Look, uh, we announced a partnership with Anthropic, uh, uh, last year—late last year.
The more AI can do.
The more is the opportunity for us.
how much software has been implemented in legal? There is so much, paralle, legal work happening. In fact, we work for the for a professional services and the legal legal services company where we are, identifying all the parallel work that never existed before.
It's very simple. I mean, let's talk about the plug, the plug into Legal.
Now.
There's a lot of Labor around classical software and all that labor.
Needs more productivity.
How much software that has been implemented in legal? There is so much, paralle legal work happening. In fact, we work for a for a professional services and a legal legal services company where we are, identifying all the parallel work that never existed before.
Now.
If you want to drift that value to a higher productivity to the workers, in every function of a company, AI can be that catalyst.
And that are, that is net new spend area for us.
There's a lot of Labor around classical software and all that labor needs more productivity.
And that is what we're looking for. Those net new spend areas. This is a totally new addressable spend
Ravi Kumar: That is net new spend area for us, and that is what we're looking for, those net new spend areas. This is a totally new addressable spend. And if you're embedding technology, you are able to integrate this technology to the systems of record written in SaaS software, and you're able to build those workflows, build those flows where humans and digital labor can work together and amplify the productivity. If you're able to reinvent those processes for higher throughput, higher velocity, using this tool as a catalyst, we're able to bump up the productivity of enterprises and bump up the productivity of workers, and we're gonna be the bridge to do that. So I see this as a unique new opportunity. The more it comes in. I mean, remember, this technology is smart enough already.
Ravi Kumar: That is net new spend area for us, and that is what we're looking for, those net new spend areas. This is a totally new addressable spend. And if you're embedding technology, you are able to integrate this technology to the systems of record written in SaaS software, and you're able to build those workflows, build those flows where humans and digital labor can work together and amplify the productivity. If you're able to reinvent those processes for higher throughput, higher velocity, using this tool as a catalyst, we're able to bump up the productivity of enterprises and bump up the productivity of workers, and we're gonna be the bridge to do that. So I see this as a unique new opportunity. The more it comes in. I mean, remember, this technology is smart enough already.
If you want to drift that value to higher productivity to the workers, in every function of a company, AI can be that catalyst.
And that are, that is net new spend area for us.
And that is what we're looking for—those net new spend areas. This is a totally new addressable spend.
And if you are embedding technology, you are able to integrate this technology to the systems of record, written and SAS software and you're able to build those workflows. Build those flows, where humans and digital labor can work together and amplify the productivity. If you're able to reinvent those processes for higher throughput higher velocity. Uh, using this tool as a catalyst, we are going to bump up the productivity of Enterprises and bump up the productivity of workers. And uh, we're going to be the bridge to do that. So I see this as a unique new opportunity, the more comes in. I mean, remember remember this technology is smart enough already.
Ravi Kumar: I've mentioned in our remarks that, you know, $4.5 trillion of labor is already exposed to AI, and it can, you can create higher productivity. The reality is none of that has drifted to enterprises. None of that has drifted to enterprises. You need that bridge, and that bridge is all about context engineering. It is about reinventing the process. It's about redesigning these flows in a company, integrating it into the SaaS layers so that there is interplay between deterministic and probabilistic layers. And it is also about integrating it into the physical and the operational layers of the company so that you can get that value. So that is the way forward. And we don't...
Ravi Kumar: I've mentioned in our remarks that, you know, $4.5 trillion of labor is already exposed to AI, and it can, you can create higher productivity. The reality is none of that has drifted to enterprises. None of that has drifted to enterprises. You need that bridge, and that bridge is all about context engineering. It is about reinventing the process. It's about redesigning these flows in a company, integrating it into the SaaS layers so that there is interplay between deterministic and probabilistic layers. And it is also about integrating it into the physical and the operational layers of the company so that you can get that value. So that is the way forward. And we don't...
And if you are embedding technology, you are able to integrate this technology to the systems of record, written and SAS software and you're able to build those workflows. Build those flows, where humans and digital labor can work together and amplify the productivity. If you're able to reinvent those processes for higher throughput higher velocity. Uh, using this tool as a catalyst, we are going to bump up the productivity of Enterprises and bump up the productivity of workers. And uh, we're going to be the bridge to do that. So I see this as a unique new opportunity, the more comes in. I mean, remember remember this technology is smart enough already.
I've mentioned in our um in our remarks that um you know, 4.52% they they have reality is none of that is gifted to Enterprises. None of that is gifted to Enterprises. You need that bridge.
I've mentioned in our, um, in our remarks that, uh, you know, $4.5 trillion of labor can already— is already exposed to AI, and it can, it can, you can create higher productivity. The reality is none of that has drifted to enterprises. None of that has drifted to enterprises. You need that bridge.
And that bridge is all about contextual engineering. It is about uh Reinventing. The process is about red redesigning. These flows in a, in a, in a company, integrating it into the SAS layer. So that there is interplay between deterministic and probabilistic layers, and it is also about
And the bridge is all about contextual engineering. It is about, uh, reinventing. The process is about redesigning these flows in a, in a, in a company, integrating it into the SaaS layers so that there is interplay between deterministic and probabilistic layers, and it is also about
Ravi Kumar: I mean, at this point of time, it is not about getting the smarter technologies. We already have smarter technologies. At this point of time, how do you drift that value to businesses? And there is an urgency because, you know, there's $400 to 500 billion, which has been spent on infrastructure in the last two years, and you have to get that value here, and there's trillions of dollars of value, and the shelf life of this technology is short. So I see this as a net positive for more work, more surface area, more addressable spend for companies like ours, and we call it the AI Builder because we have this unique opportunity to be the bridge.
Ravi Kumar: I mean, at this point of time, it is not about getting the smarter technologies. We already have smarter technologies. At this point of time, how do you drift that value to businesses? And there is an urgency because, you know, there's $400 to 500 billion, which has been spent on infrastructure in the last two years, and you have to get that value here, and there's trillions of dollars of value, and the shelf life of this technology is short. So I see this as a net positive for more work, more surface area, more addressable spend for companies like ours, and we call it the AI Builder because we have this unique opportunity to be the bridge.
Uh, integrating it into the physical, and the operational layers of the of the companies so that you can, you can get that value. So that is the way forward. And uh, we don't, I mean at this point of time it is not about getting the smarter Technologies. We already have smarter Technologies at this point of Time. How do you drift that value to businesses? And uh there is an urgency because you know, there's 400 500 billion dollars which has been spent on infrastructure in the last 2 years.
and uh,
You have to get that value here and there's trillions of dollars of value and the the shelf life of this technology is short. So I see this as a net positive.
Uh, integrating it into the physical, and the operational layers of the of the companies so that you can, you can get that value. So that is the way forward. And uh, we don't, I mean at this point of time it is not about getting the smarter Technologies. We already have smarter Technologies at this point of Time. How do you drift that value to businesses? And uh there is an urgency because you know, there's 400 500 billion dollars which has been spent on infrastructure in the last 2 years.
and um,
For more work, more surface area, more addressable, spend for companies like ours, and we call it the AI Builder because we have this unique opportunity to be the bridge.
Thank you.
You have to get that value here and there's trillions of dollars of value and the the shelf life of this technology is short. So I see this as a net positive.
Rod Bourgeois: Thank you.
Rod Bourgeois: Thank you.
More surface area, more addressable spend for companies like ours. And we call it the AI Builder because we have this unique opportunity to be the bridge.
Thank you.
Ravi Kumar: So thank you so much for joining the call. Thank you for your continued support. We've had an exciting 2025. You know, we have outpaced our own expectations on revenue, margin, EPS. EPS growth has been higher than revenue growth, expansive margins. This is what we said in the Investor Day, and we are continuing to keep our trajectory, accelerating our trajectory. We are on the top of our charts on our relative growth in comparison to our peers. We hope to keep the winner's circle performance in 2026, expansive margins and EPS higher than revenue growth, and revenue growth at the middle of our range is actually higher than what we presented last year.
Ravi Kumar: So thank you so much for joining the call. Thank you for your continued support. We've had an exciting 2025. You know, we have outpaced our own expectations on revenue, margin, EPS. EPS growth has been higher than revenue growth, expansive margins. This is what we said in the Investor Day, and we are continuing to keep our trajectory, accelerating our trajectory. We are on the top of our charts on our relative growth in comparison to our peers. We hope to keep the winner's circle performance in 2026, expansive margins and EPS higher than revenue growth, and revenue growth at the middle of our range is actually higher than what we presented last year.
So, thank you so much for joining the call. Um, uh, thank you for your continued, uh, support. Um, we've had an exciting 2025, uh, you know, we have uh, we have outpaced our own expectations, on Revenue margin EPS, EPS growth has been higher than uh Revenue growth expensive margins. Uh, this is what we said in the investor day.
And we, we, we are continuing to keep our trajectory, uh, accelerating our trajectory. We are on the top of our charts, on on, on our relative growth in comparison to our peers.
So, thank you so much for joining the call. Um, uh, thank you for your continued, uh, support. Um, we've had an exciting 2025, um, you know, we have uh, we have outpaced our own expectations, on Revenue margin EPS, EPS growth has been higher than uh Revenue growth expansive margins. Uh, this is what we said in the investor day.
And we are, we—we are continuing to keep our trajectory, uh, accelerating our trajectory. We are on the top of our charts, on, on, on our relative growth in comparison to our peers.
And uh, we hope to keep uh, keep the Winners Circle performance in 20126, expansive, margins, and EPS, higher than Revenue growth, and revenue growth, at the middle of our range is actually higher than what we presented last year. And uh, we we uh, we we are in a, we are in a solid foundation. And I think the boldest, uh, chapters are, um, are going to be in 2627 as we go forward.
Ravi Kumar: We are in a solid foundation, and I think the boldest chapters are gonna be in 2026, 2027 as we go forward.
Thank you.
Ravi Kumar: We are in a solid foundation, and I think the boldest chapters are gonna be in 2026, 2027 as we go forward.
this concludes today's Cognizant Technology Solutions year end, fourth quarter,
2025 earnings conference call. You may now disconnect your lines. Thank you for your participation.
And uh we hope to keep keep the winner, circle performance in 2026, expansive margins, and EPS, higher than Revenue growth, and revenue growth, at the middle of our range is actually higher than what we presented last year. And uh, we we uh, we we are in a, we are in a solid foundation. And I think the boldest, uh, chapters are, um, are going to be in 2627 as we go forward.
Operator: Thank you. This concludes today's Cognizant Technology Solutions year-end Q4 2025 earnings conference call. You may now disconnect your lines. Thank you for your participation.
Operator: Thank you. This concludes today's Cognizant Technology Solutions year-end Q4 2025 earnings conference call. You may now disconnect your lines. Thank you for your participation.
