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9 hours ago
- Business
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American Superconductor (NASDAQ:AMSC) Surprises With Strong Q2, Provides Optimistic Revenue Guidance for Next Quarter
Power resiliency solutions provider American Superconductor (NASDAQ:AMSC) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 79.6% year on year to $72.36 million. On top of that, next quarter's revenue guidance ($67.5 million at the midpoint) was surprisingly good and 6% above what analysts were expecting. Its non-GAAP profit of $0.14 per share was 16.7% above analysts' consensus estimates. Is now the time to buy American Superconductor? Find out in our full research report. American Superconductor (AMSC) Q2 CY2025 Highlights: Revenue: $72.36 million vs analyst estimates of $64.97 million (79.6% year-on-year growth, 11.4% beat) Adjusted EPS: $0.14 vs analyst estimates of $0.12 (16.7% beat) Adjusted EBITDA: $6.87 million vs analyst estimates of $3.45 million (9.5% margin, beat) Revenue Guidance for Q3 CY2025 is $67.5 million at the midpoint, above analyst estimates of $63.67 million Adjusted EPS guidance for Q3 CY2025 is $0.14 at the midpoint, above analyst estimates of $0.11 Operating Margin: 7.8%, up from 1.6% in the same quarter last year Free Cash Flow Margin: 4.6%, down from 7.8% in the same quarter last year Market Capitalization: $1.90 billion "We've kicked off fiscal 2025 with accelerated growth, delivering a standout first quarter marked by significant progress and exceptional execution that surpassed our expectations," said Daniel P. McGahn, Chairman, President and CEO, AMSC. Company Overview Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, American Superconductor's 29% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. American Superconductor's annualized revenue growth of 49.8% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. American Superconductor's recent performance shows it's one of the better Renewable Energy businesses as many of its peers faced declining sales because of cyclical headwinds. This quarter, American Superconductor reported magnificent year-on-year revenue growth of 79.6%, and its $72.36 million of revenue beat Wall Street's estimates by 11.4%. Company management is currently guiding for a 23.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.1% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Although American Superconductor was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 9.4% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. On the plus side, American Superconductor's operating margin rose by 29.9 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to show consistent profitability. In Q2, American Superconductor generated an operating margin profit margin of 7.8%, up 6.2 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. American Superconductor's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For American Superconductor, its two-year annual EPS growth of 67.4% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q2, American Superconductor reported adjusted EPS at $0.14, up from $0.08 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects American Superconductor's full-year EPS of $0.69 to shrink by 17.4%. Key Takeaways from American Superconductor's Q2 Results We were impressed by American Superconductor's optimistic EPS guidance for next quarter, which blew past analysts' expectations. We were also excited its EBITDA outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 4.6% to $45.96 immediately following the results. Sure, American Superconductor had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
9 hours ago
- Business
- Yahoo
Cognizant Reports Second Quarter 2025 Results
Revenue of $5.25 billion increased 8.1% year-over-year or 7.2% in constant currency1, above the high end of our guidance range Operating margin of 15.6% increased 100 basis points year-over-year; Adjusted Operating Margin1 of 15.6% increased 40 basis points year-over-year GAAP EPS of $1.31 increased 15% year-over-year; Adjusted EPS1 of $1.31 increased 12% year-over-year Record trailing 12-month bookings of $27.8 billion increased 6% year-over-year; Q2 bookings growth of 18% year-over-year, driven by two mega deals with TCV of over $1 billion each Year-to-date $885 million returned to shareholders through share repurchases and dividends; Planned return increased to $2.0 billion for 2025 versus $1.7 billion previously 2025 constant currency revenue growth guidance is narrowed to 4.0% to 6.0% 2025 Adjusted Operating Margin guidance is unchanged at 15.5% to 15.7%, expansion of 20 to 40 basis points year-over-year TEANECK, N.J., July 30, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its second quarter 2025 financial results. "Our second quarter revenue performance exceeded the high end of our guidance range, underscoring the effectiveness of our strategy to build a resilient and durable portfolio that positions us to win in the AI era," said Ravi Kumar S, Chief Executive Officer. "Our investments in talent, platforms and AI infrastructure drove our fourth-straight quarter of organic year-over-year revenue growth, another quarter of margin expansion and helped us accelerate bookings, including two $1 billion deals. In today's dynamic and competitive environment, we are differentiating ourselves by moving with agility and building IP at the edge, leveraging our interdisciplinary capabilities across domain, technology and operations to address new client growth priorities and deliver agentification at scale." $ in millions, except per share data Q2 2025Q2 2024YTD Q2 2025YTD Q2 2024 Revenue $5,245$4,850$10,360$9,610 Y/Y Change 8.1 %(0.7 %)7.8 %(0.9 %) Y/Y Change CC1 7.2 %(0.5 %)7.7 %(0.9 %) GAAP Operating Margin 15.6 %14.6 %16.1 %14.6 % Adjusted Operating Margin1 15.6 %15.2 %15.5 %15.1 % GAAP Diluted EPS $1.31$1.14$2.65$2.23 Adjusted Diluted EPS1 $1.31$1.17$2.55$2.30 Our recently completed acquisitions contributed approximately 400 basis points to year-over-year revenue growth in each of the Q2 2025 and YTD Q2 2025 periods. "In the first half of 2025, we delivered constant currency revenue growth of 7.7% and adjusted operating margin expansion of 40 basis points while funding investments for growth. This drove adjusted EPS growth of 11%," said Jatin Dalal, Chief Financial Officer. "Our increased revenue guidance midpoint and reaffirmed adjusted operating margin outlook reflect strong execution and momentum year-to-date. We now expect to return approximately $2.0 billion to shareholders this year, reinforcing our commitment to returning excess capital and confidence in our long-term strategy." Bookings On a trailing-twelve-month basis, bookings increased 6% year-over-year to $27.8 billion, which represented a book-to-bill of approximately 1.4x. Bookings in the second quarter increased 18% year-over-year. Second quarter bookings included six large deals, which are deals with total contract value of $100 million or greater. Of these, two deals had total contract value of over $1 billion each. Employee Metrics On a trailing-twelve months basis, Voluntary Attrition - Tech Services was 15.2% in the second quarter of 2025, as compared to 15.8% and 13.6% in the first quarter of 2025 and second quarter of 2024, respectively. Total headcount as of June 30, 2025 was 343,800, an increase of 7,500 from both Q1 2025 and Q2 2024. Return of Capital to Shareholders The Company repurchased 4.5 million shares for $354 million during the second quarter under its share repurchase program. Year-to-date, the company has repurchased 6.8 million shares for $544 million. As of June 30, 2025, there was $2.7 billion remaining under the share repurchase authorization. In July 2025, the Company declared a quarterly cash dividend of $0.31 per share for shareholders of record on August 18, 2025. This dividend will be payable on August 26, 2025. Third Quarter and Full-Year 2025 Guidance2 (all growth rates year-over-year) Third quarter revenue is expected to be $5.27 - $5.35 billion, growth of 4.6% to 6.1%, or 3.5% to 5.0% in constant currency. Full-year 2025 revenue is expected to be $20.7 - $21.1 billion, growth of 4.7% to 6.7%, or 4.0% to 6.0% in constant currency. Full-year 2025 Adjusted Operating Margin3 is expected to be in the range of 15.5% to 15.7%, or 20 to 40 basis points of expansion. Full-year 2025 Adjusted Diluted EPS3 is expected to be in the range of $5.08 to $5.22. __________________________________ 1 Constant currency ("CC") revenue growth, Adjusted Operating Margin, and Adjusted Diluted Earnings Per Share ("Adjusted Diluted EPS" or "Adjusted EPS") are not measures of financial performance prepared in accordance with GAAP. A full reconciliation of Adjusted Operating Margin guidance to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts. See "About Non-GAAP Financial Measures and Performance Metrics" for more information and a partial reconciliation to the most directly comparable GAAP financial measure at the end of this release. 2 Guidance as of July 30, 2025 3 A full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts. See "About Non-GAAP Financial Measures and Performance Metrics" for more information and a partial reconciliation to the most directly comparable GAAP financial measures at the end of this release. Select Company, Client and Partnership Announcements Cognizant is building a portfolio of capabilities combined with deep domain expertise to harness and advance an AI-led future. Cognizant's progress has been accelerated through client agreements, platform enhancements, and partnerships. Recent announcements include: Client Announcements Announced a contract with Lineage, Inc., the world's largest global temperature-controlled warehouse REIT, to advance Lineage's ongoing customer service transformation. The agreement is aimed at delivering enhanced resources, reliable service models, and cutting-edge technologies, such as Agentic AI solutions, to empower the customer care organization that serves Lineage's customers. Renewed engagement with Aker Solutions, a global leader from Norway in the energy industry, through a new multi-year agreement that includes use of the Cognizant Neuro® platform. Using the latest technology and AI platforms, Cognizant aims to modernize Aker Solutions' IT operations and projects, including cloud services, IT infrastructure, application management, networks, and cybersecurity. Announced an agreement with Ipswich City Council, the local government authority for the City of Ipswich, Queensland, together with Workday, Inc. As part of a five-year technology transformation, Cognizant will implement Workday HCM to develop a scalable, data-led technology system, designed to adapt to the community's evolving needs. Entered into an agreement with SmartestEnergy, the energy company helping Britain's businesses navigate the energy transition, to transform its employee support services and enable scalable growth through a seamless omni-channel experience. Cognizant will transform the first and second-line IT support functions of SmartestEnergy's internal helpdesk. Announced a contract with Kramp, Europe's leading technical wholesaler of spare parts and accessories for the agriculture, forest & landscaping and construction industries, to transform Kramp's IT platform. This project aims to implement a new Enterprise Resource Planning (ERP) solution that enhances operational efficiency, boosts customer experience, and drives business growth. Platform Enhancements and Partnerships Launched Cognizant Agent Foundry, an offering designed to help enterprises design, deploy and orchestrate autonomous AI agents at scale. This offering is built to support the full lifecycle of agent deployment across four stages – Discover, Design, Build and Scale – providing enterprises with a structured, repeatable path from strategy to execution. Cognizant Agent Foundry is platform-agnostic, designed to integrate with existing enterprise systems (CRM, ERP, Human Resource Information Systems, cloud) and leading AI platforms. This includes collaboration under Cognizant's partnerships with ServiceNow, Salesforce and WRITER. Open-sourced its Neuro® AI Multi-Agent Accelerator for research and academic use. This open-source software enables domain experts, researchers, and developers to immediately start prototyping and building agent networks across a wide range of use cases. The open-source software is expected to help accelerate AI adoption by promoting collaboration in building and customizing multi-agent systems for adaptive operations and real-time decision-making. Enterprises can leverage Cognizant's Multi-Agent Services Suite to deploy networks of agents in a commercial setting at scale and to efficiently manage them in production, under a commercial license. Partnered with Google Cloud to launch Cognizant® Autonomous Customer Engagement, a new AI-led autonomous contact center solution, built to deliver hyper-personalized customer experiences across every stage of the order journey, across industries. The solution utilizes advanced AI agents to anticipate customer demands as well as address requests in real-time across both voice and digital channels. By employing Google Cloud Voice AI's natural language processing and machine learning, Cognizant Autonomous Customer Engagement is built to accurately understand and respond to user requests in order to provide quicker resolutions, shorter wait times, and reduced operational costs. Expanded its strategic collaboration with Pegasystems Inc., to augment Cognizant's agentic AI services with Pega Blueprint™ and drive rapid, successful cloud transformations for joint clients. By leveraging Cognizant's workbench for AI-driven legacy code rewrite capabilities, business rules and data extraction, Cognizant aims to help customers optimize and reimagine processes and build AI-powered systems on the Pega Infinity platform. Expanded its partnership with Salesforce, introducing a new suite of customer and operations transformation services built for Salesforce's Agentforce. The offerings are designed to help enterprises accelerate their shift to an AI-augmented workforce, combining human expertise with autonomous agents to drive productivity, responsiveness, and scalable impact. Select Company Recognition, Announcements, and Analyst Ratings Announced that Cognizant's AI Lab has been granted two new U.S. patents in the first half of 2025, bringing the AI Lab's U.S. patent total to 59. It also earned a gold award for a research paper on "Realizing Human Expertise through AI" presented in July at GECCO (Genetic and Evolutionary Computation Conference) in Malaga, Spain. Recognized as one of the first organizations to sign the White House's Pledge to America's Youth: Investing in Artificial Intelligence (AI) Education. Cognizant joins more than 60 leading U.S. organizations that have committed to supporting America's youth and investing in AI education through this pledge. The pledges made by these 60+ companies intend to provide resources for youth and teachers over the next four years. Named as one of America's Greatest Workplaces 2025 and one of America's Greatest Workplaces in Tech 2025 by Newsweek and Plant-A Insights Group. This is the third consecutive year Cognizant has made America's Greatest Workplaces list. Announced a major expansion of its India operations with plans to develop a state-of-the-art campus in Visakhapatnam, Andhra Pradesh. The proposed campus will be spread across 22-acres in Kapuluppada, IT Hills, a site allocated by the Government of Andhra Pradesh. The campus will be developed in three phases, creating over 8,000 employment opportunities and further elevating Cognizant's advanced capabilities in AI and digital transformation delivery for clients worldwide. Published 2024 Sustainability and Corporate Citizenship Report detailing Cognizant's progress across key pillars – people and communities, environment and climate action, and corporate governance and AI. Highlights include Cognizant's focus on skilling for the future through its Synapse initiative, which aims to equip one million people with digital and technology skills by 2026; and how the company is advancing responsible AI frameworks and solutions. Additional details are available at Named as Partner of the Year by Pegasystems for advancing AI-powered enterprise transformation. Named Global Data Cloud Services Implementation Partner of the Year by Snowflake. Recognized as a Leader by Everest Group® in: Talent Readiness for Next-generation Application Services PEAK Matrix® Assessment, 2025 Intelligent Process Automation (IPA) PEAK Matrix® Assessment, 2025 Microsoft Modern Work Services PEAK Matrix® Assessment, 2025 Marketing Services PEAK Matrix® Assessment, 2025 Healthcare Data, Analytics, and AI Services PEAK Matrix® Assessment, 2025 Life Sciences Digital Services PEAK Matrix® Assessment, 2025 Life Sciences Enterprise Platform Services PEAK Matrix® Assessment, 2025 Market Leader in HFS Horizons: Insurance Services, 2025 Report Engineering Research and Development Services, 2025 Report Intelligent Retail and CPG Ecosystems, 2025 Report Energy and Utilities Service Providers, 2025 Report A Leader in IDC MarketScape: Worldwide Industrial IoT End-to-End Engineering and Life-Cycle Services 2025 Vendor Assessment, doc # US51812924, June 2025 Leadership in ISG Provider Lens™: Guidewire Services Ecosystem, 2025 ServiceNow Ecosystem Partners, 2025 Digital Engineering Services, 2025 Microsoft AI & Cloud Ecosystem, 2025 SAP Ecosystem Partners, 2025 Duck Creek Services Ecosystem, 2025 Google Cloud Partner Ecosystem 2025 Snowflake Ecosystem Partners, 2025 Leadership in Avasant's RadarView: Applied AI Services, 2025 Veeva Services, 2025 Cybersecurity Services, 2025 Banking Digital Services, 2025 Airlines and Airports Digital Services, 2025 Manufacturing Digital Services, 2025 Retail Digital Services, 2025 Property & Casualty Insurance Digital Services, 2025 Recognized as a Global Leader in Constellation's 2025 ShortList™ Report: Cross-Platform Agentic AI Microsoft End-to-End Service Providers Custom Software Development Services Cybersecurity Services Conference Call Cognizant will host a conference call on July 30, 2025, at 5:00 p.m. (Eastern) to discuss the Company's second quarter 2025 results. To listen to the conference call, please dial (877) 810-9510 (domestic) or +1 (201) 493-6778 (international) and provide the following conference passcode: "Cognizant Call." The conference call will also be available live on the Investor Relations section of the Cognizant website at An earnings supplement will also be available on the Cognizant website at the time of the conference call. For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or +1 (201) 612-7415 (internationally) and enter 13753923 beginning two hours after the end of the call until 11:59 p.m. (Eastern) on Wednesday, August 13, 2025. The replay will also be available at Cognizant's website for 60 days following the call. About Cognizant Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at or @cognizant. Forward-Looking Statements This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, strategic partnerships and collaborations, competitive position and opportunities in the marketplace, investment in and growth of our business, the pace and magnitude of change and client needs related to generative AI, sustainability and corporate citizenship initiatives, the effectiveness of our recruiting and talent efforts and related costs, labor market trends, the anticipated amount of capital to be returned to shareholders and our anticipated financial performance, matters related to the Belcan acquisition and other statements regarding matters that are not historical facts. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, our ability to successfully use AI-based technologies and the impact those technologies may have on the demand and terms for our services, the competitive marketplace for talent and its impact on employee recruitment and retention, risks related to our NextGen program and the ultimate benefits of such program, legal, reputational and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration, trade and taxes, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law. About Non-GAAP Financial Measures and Performance Metrics Non-GAAP Financial MeasuresTo supplement our financial results presented in accordance with GAAP, this press release includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Operating Margin, Adjusted Diluted EPS (or Adjusted EPS), free cash flow, net cash and constant currency revenue growth. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of our non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated. Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations exclude unusual items, such as the gain on sale of property and equipment and NextGen charges. Our non-GAAP financial measure Adjusted Diluted EPS excludes unusual items, such as the gain on sale of property and equipment and NextGen charges, net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments. The income tax impact of each item excluded from Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Free cash flow is defined as cash flows from operating activities plus proceeds from sale of property and equipment, net of purchases of property and equipment. Net cash is defined as cash and cash equivalents and short-term investments less short-term and long-term debt. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period's foreign currency exchange rates measured against the comparative period's reported revenues. Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced transparency into our operating results. For our internal management reporting and budgeting purposes, we use various GAAP and non-GAAP financial measures for financial and operational decision-making, to evaluate period-to-period comparisons, to determine portions of the compensation for our executive officers and for making comparisons of our operating results to those of our competitors. Accordingly, we believe that the presentation of our non-GAAP measures, which exclude certain costs, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations. A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and may exclude costs that are recurring such as our net non-operating foreign currency exchange gains or losses. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from our non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures. Performance MetricsBookings are defined as total contract value (or TCV) of new contracts, including new contract sales as well as renewals and expansions of existing contracts. Bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large contracts. Our book-to-bill ratio is defined as bookings for the trailing twelve months divided by revenue for the same period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. The extent and timing of conversion of bookings to revenues may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and contract modifications, including terminations, over the lifetime of a contract. The majority of our contracts are terminable by the client on short notice often without penalty, and some without notice. We do not update our bookings for subsequent terminations, reductions or foreign currency exchange rate fluctuations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenues. However, management believes that it is a key indicator of potential future revenues and provides a useful indicator of the volume of our business over time. Large deals and mega deals are defined as deals with a total contract value of $100 million or greater and $500 million or greater, respectively. Investor Relations Contact:Media Contact: Tyler ScottJeff DeMarrais VP, Investor RelationsSVP, Corporate Communications +1 551-220-8246 +1 475-223-2298 - tables to follow - COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions, except per share data) Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024 Revenues $ 5,245$ 4,850$ 10,360$ 9,610 Operating expenses: Cost of revenues (exclusive of depreciation and amortization expense shown separately below) 3,4793,2046,8766,350 Selling, general and administrative expenses 8107811,6011,546 Restructuring charges —29—52 Depreciation and amortization expense 139128275259 (Gain) on sale of property and equipment ——(62)— Income from operations 8177081,6701,403 Other income (expense), net: Interest income 23305360 Interest expense (9)(10)(21)(21) Foreign currency exchange gains (losses), net 7197 Other, net 4(1)31 Total other income (expense), net 25204447 Income before provision for income taxes 8427281,7141,450 Provision for income taxes (197)(165)(410)(344) Income (loss) from equity method investment —346 Net income $ 645$ 566$ 1,308$ 1,112 Basic earnings per share $ 1.31$ 1.14$ 2.65$ 2.24 Diluted earnings per share $ 1.31$ 1.14$ 2.65$ 2.23 Weighted average number of common shares outstanding - Basic 492497493497 Dilutive effect of shares issuable under stock-based compensation plans —1—1 Weighted average number of common shares outstanding - Diluted 492498493498 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)(in millions, except par values) June 30,2025December 31,2024 AssetsCurrent assets:Cash and cash equivalents $ 1,796$ 2,231 Short-term investments 1212 Trade accounts receivable, net 4,4024,059 Other current assets 1,3961,202 Total current assets 7,6067,504 Property and equipment, net 976994 Operating lease assets, net 565552 Goodwill 7,1206,953 Intangible assets, net 1,5231,599 Deferred income tax assets, net 1,2561,248 Long-term investments 11090 Other noncurrent assets 1,0081,026 Total assets $ 20,164$ 19,966 Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 279$ 340 Deferred revenue 440450 Short-term debt 3333 Operating lease liabilities 155152 Accrued expenses and other current liabilities 2,2492,610 Total current liabilities 3,1563,585 Deferred revenue, noncurrent 3430 Operating lease liabilities, noncurrent 430420 Deferred income tax liabilities, net 169154 Long-term debt 559875 Other noncurrent liabilities 528494 Total liabilities 4,8765,558 Stockholders' equity:Preferred stock, $0.10 par value, 15 shares authorized, none issued —— Class A common stock, $0.01 par value, 1,000 shares authorized, 489 and 495 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 55 Additional paid-in capital 1413 Retained earnings 15,22614,686 Accumulated other comprehensive income (loss) 43(296) Total stockholders' equity 15,28814,408 Total liabilities and stockholders' equity $ 20,164$ 19,966 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION Reconciliations of Non-GAAP Financial Measures (Unaudited) (dollars in millions, except per share amounts) Three Months EndedJune 30,Six Months EndedJune 30,Guidance 2025202420252024Full Year 2025 (1) GAAP income from operations $ 817$ 708$ 1,670$ 1,403 (Gain) on sale of property and equipment(a) ——(62)— NextGen charges(b) —29—52 Adjusted Income From Operations $ 817$ 737$ 1,608$ 1,455 GAAP operating margin 15.6 %14.6 %16.1 %14.6 % (Gain) on sale of property and equipment ——(0.6)—(0.3) % NextGen charges —0.6—0.5— Adjusted Operating Margin 15.6 %15.2 %15.5 %15.1 %15.5% - 15.7% GAAP diluted earnings per share $ 1.31$ 1.14$ 2.65$ 2.23 Effect of above adjustments, pre-tax —0.06(0.13)0.10$(0.13) Non-operating foreign currency exchange (gains) losses, pre-tax(c) (0.01)—(0.02)(0.01)(c) Tax effect of above adjustments(d) 0.01(0.03)0.05(0.02)(a) (c) One-time income tax expense related to the enactment of the OBBBA(e) ————~0.82 Adjusted Diluted Earnings Per Share $ 1.31$ 1.17$ 2.55$ 2.30$5.08 - $5.22 (1) A full reconciliation of Adjusted Operating Margin and Adjusted Diluted Earnings Per Share guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to unusual items, net non-operating foreign currency exchange gains or losses and the tax effects of these adjustments, and such adjustments may be significant. Notes: (a) During the three months ended March 31, 2025, we realized a gain of $62 million on the sale of an office complex in India, which was reported in "(Gain) on sale of property and equipment" on our unaudited consolidated statement of operations. Our guidance anticipates pre-tax charges of approximately $(0.13) per diluted share for the full year 2025. The tax effect of these charges is expected to be approximately $0.02 per diluted share for the full year 2025. (b) NextGen charges for the three months ended June 30, 2024 include $18 million of employee separation costs and $11 million of facility exit costs. NextGen charges for the six months ended June 30, 2024 include $26 million of employee separation costs, $25 million of facility exit costs and $1 million of third party and other costs. The program concluded on December 31, 2024. The costs related to the NextGen program are reported in "Restructuring charges" in our unaudited consolidated statements of operations. (c) Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in "Foreign currency exchange gains (losses), net" in our unaudited consolidated statements of operations. Non-operating foreign currency exchange gains and losses are subject to high variability and low visibility and therefore cannot be provided on a forward-looking basis without unreasonable efforts. (d) Presented below are the tax impacts of our non-GAAP adjustment to pre-tax income for the: (in millions) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Non-GAAP income tax benefit (expense) related to:Gain on sale of property and equipment $ —$ —$ (9)$ — NextGen charges —8—13 Foreign currency exchange gains and losses (7)1(10)— The effective tax rate related to non-operating foreign currency exchange gains and losses varies depending on the jurisdictions in which such income and expenses are generated and the statutory rates applicable in those jurisdictions. As such, the income tax effect of non-operating foreign currency exchange gains and losses shown in the above table may not appear proportionate to the net pre-tax foreign currency exchange gains and losses reported in our unaudited consolidated statements of operations. (e) In July 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States, which, among other provisions, repealed the requirement to capitalize U.S. research and experimental ("R&E") costs. As a result, we do not believe it is more likely than not that we will realize our deferred tax asset of approximately $400 million related to R&E costs capitalized outside the United States. These amounts would have otherwise been available to offset certain future U.S. taxes on our non-U.S. earnings, which, as a result of this repeal, we no longer project to be applicable to us. Therefore, we anticipate a one-time, non-cash tax expense of approximately $400 million in the third quarter of 2025. Our guidance anticipates approximately $0.82 per diluted share for the full year 2025 related to this charge. Reconciliations of Net Cash (Unaudited)(in millions)June 30, 2025December 31, 2024 Cash and unrestricted cash equivalents$ 1,796$ 2,231 Short-term investments1212 Less: Short-term debt3333 Long-term debt559875 Net cash$ 1,216$ 1,335 The above tables serve to reconcile the Non-GAAP financial measures to the most directly comparable GAAP measures. Refer to the "About Non-GAAP Financial Measures and Performance Metrics" section of our press release for further information on the use of these Non-GAAP measures. COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION Revenue by Business Segment and Geography (Unaudited) (dollars in millions) Three Months Ended June 30, 2025Year over Year$ % of total % ChangeConstantCurrency % Change (a) Revenues by Segment:Health Sciences $ 1,55129.6 %6.2 %5.3 % Financial Services 1,54729.5 %6.9 %6.0 % Products and Resources (b) 1,30624.9 %16.0 %14.7 % Communications, Media and Technology 84116.0 %3.1 %2.2 % Total Revenues (b) $ 5,2458.1 %7.2 % Revenues by Geography:North America (b) $ 3,91274.6 %8.1 %8.1 % United Kingdom 4829.2 %8.6 %3.2 % Continental Europe 5209.9 %10.6 %4.7 % Europe - Total 1,00219.1 %9.6 %4.0 % Rest of World 3316.3 %4.7 %6.0 % Total Revenues (b) $ 5,2458.1 %7.2 %Six Months Ended June 30, 2025Year over Year$ % of total % ChangeConstantCurrency % Change (a) Revenues by Segment:Health Sciences $ 3,12230.1 %8.5 %8.3 % Financial Services 3,00929.0 %6.3 %6.2 % Products and Resources (b) 2,58425.0 %14.4 %14.1 % Communications, Media and Technology 1,64515.9 %0.2 %0.1 % Total Revenues (b) $ 10,3607.8 %7.7 % Revenues by Geography:North America (b) $ 7,76675.0 %8.8 %8.9 % United Kingdom 9399.0 %4.3 %2.1 % Continental Europe 1,0139.8 %6.3 %4.9 % Europe - Total 1,95218.8 %5.3 %3.5 % Rest of World 6426.2 %4.2 %6.5 % Total Revenues (b) $ 10,3607.8 %7.7 % Notes: (a) Constant currency revenue growth is not a measure of financial performance prepared in accordance with GAAP. See "About Non-GAAP Financial Measures and Performance Metrics" section of our press release for further information. (b) For each of the three and six months ended June 30, 2025, our acquisition of Belcan contributed approximately 400 basis points to overall revenue growth, primarily in North America and to a lesser extent in the United Kingdom. Additionally, Belcan contributed approximately 1,600 and 1,550 basis points of growth to our Products and Resources segment for the three and six months ended June 30, 2025, respectively. COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(in millions) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Cash flows from operating activities:Net income $ 645$ 566$ 1,308$ 1,112 Adjustments for non-cash income and expenses 13381297262 Changes in operating assets and liabilities, net of effects of businesses acquired (380)(385)(807)(1,017) Net cash provided by operating activities 398262798357 Cash flows from investing activities:Purchases of property and equipment (67)(79)(144)(158) Proceeds from sale of property and equipment ——70— Net (purchases) maturities of investments (15)—(15)262 Payments for business combinations, net of cash acquired ———(421) Net cash (used in) investing activities (82)(79)(89)(317) Cash flows from financing activities:Issuance of common stock under stock-based compensation plans 14153335 Repurchases of common stock (368)(76)(577)(209) Net change in term loan borrowings and earnout obligations and finance leases (9)(10)(21)(50) Repayment of notes outstanding under the revolving credit facility ——(300)— Dividends paid (153)(150)(308)(301) Net cash (used in) financing activities (516)(221)(1,173)(525) Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents 16—29(39) (Decrease) in cash, cash equivalents and restricted cash and cash equivalents (184)(38)(435)(524) Cash, cash equivalents and restricted cash and cash equivalents, beginning of period 1,9802,2312,2312,717 Cash and cash equivalents, end of period $ 1,796$ 2,193$ 1,796$ 2,193 SUPPLEMENTAL CASH FLOW INFORMATION(in millions) Three Months Ended June 30, Stock Repurchases under Board of Directors' authorized stock repurchase program: 20252024 Number of shares repurchased 4.50.9 Remaining authorized balance as of June 30, 2025 $ 2,693 Reconciliation of Free Cash Flow Non-GAAP Financial Measure (in millions) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Net cash provided by operating activities $ 398$ 262$ 798$ 357 Purchases of property and equipment (67)(79)(144)(158) Proceeds from sale of property and equipment ——70— Free cash flow $ 331$ 183$ 724$ 199 View original content to download multimedia: SOURCE Cognizant Technology Solutions Corporation
Reuters
9 hours ago
- Business
- Reuters
MGM Resorts quarterly revenue rises on sports betting strength
July 30 (Reuters) - Casino operator MGM Resorts International (MGM.N), opens new tab on Wednesday reported a rise in second-quarter revenue, driven by strong performance in its online sports-betting operations as well as its China unit. The company's China unit reported a 9% revenue growth at $1.11 billion as its casinos in the region generated more revenue from participations in main floor and VIP table games. Revenue from its regional operations segment, which encompasses casinos in U.S. markets outside Las Vegas, also rose 4% to $964.6 million. Its digital unit, which offers online gaming product offerings such as iGaming, as well as digital slots, table games, live dealer and online sports betting, recorded a 14% revenue growth to $163.9 million. There has been a surge in demand for online gambling, especially in sports betting, in the last few years, benefiting companies such as MGM Resorts and Caesars Entertainment (CZR.O), opens new tab. Caesars had posted a narrower loss on Tuesday, while BetMGM, MGM's sports-betting joint venture Entain (ENT.L), opens new tab, had also raised its annual forecast due to strong demand in online sports betting and its iGaming division. However, MGM Digital's adjusted operating loss widened, and weighed on the company's overall earnings. MGM Resorts' adjusted per-share profit for the second-quarter came in at 79 cents, compared to 86 cents, a year earlier. Total revenue rose 1.8% to $4.40 billion for the quarter ended June 30, from $4.33 billion a year earlier.
Yahoo
11 hours ago
- Business
- Yahoo
Estithmar Holding Reports Record Half-Year Results for 2025
Net profit nearly doubles to QAR 465 million, a 97% YoY increase Driven by international expansions Saudi Arabia | Maldives | Iraq | Algeria | Libya | Jordan | Kazakhstan DOHA, Qatar, July 30, 2025--(BUSINESS WIRE)--Revealing an exceptional performance across all key financial metrics, Estithmar Holding Q.P.S.C. announced its financial results for the six-month period ended 30 June 2025, following board approval. The company reported revenue of QAR 3.073 billion, an 87% year-on-year increase. Gross profit soared by 134% to QAR 1.054 billion, while EBITDA rose 97% to QAR 732 million compared to H1 2024. Net profit reached QAR 465 million, up 97% year-on-year, while earnings per share (EPS) doubled, reaching QAR 0.130. While Estithmar Holding continues its upward trajectory in its financial and operational indicators across all its financial disclosures, this remarkable leap in results for H1 2025 is mainly attributed to increased revenue through its international expansions across its 4 sectors in Saudi Arabia, Iraq, Algeria, Libya, Maldives, Jordan, and Kazakhstan. The company's enhanced operational performance also underpinned an EBITDA of QR 732 million, an increase of 97%, driven by disciplined financial and operational policies, which improved the profit margin. "Our exceptional first‑half performance demonstrates the strength of our strategy. By focusing on value creation, sector leadership and disciplined capital allocation, we have delivered greater operational efficiency, robust revenue growth and margin expansion" Juan Leon, Group CEO of Estithmar Holding commented, and added, "Sustained and balanced growth across our four clusters remains central to our investment strategy. We continue to drive innovation and adopt advanced operational technologies. With a distinctive blend of capabilities and expertise, Estithmar Holding is well‑placed to deliver exceptional stakeholder value and extend our footprint globally." Read more on Source: AETOSWire View source version on Contacts Nesrine Sign in to access your portfolio
Zawya
16 hours ago
- Business
- Zawya
Ghitha Holding delivers 6.7% increase in revenue to AED2.61bln as strategic acquisitions drive growth in H1 2025
Gross profit rose 23% YoY to AED 599.4 million, supported by pricing discipline, a strategic shift to high-margin segments, and inorganic expansion Initiated implementation of SAP S/4HANA to modernize enterprise systems and enable scalable, digitally integrated operations. Abu Dhabi, UAE: Ghitha Holding PJSC ('Ghitha' or the 'Group'; ADX: Ghitha), a diversified conglomerate spanning agriculture, food production, and distribution, and a subsidiary of IHC, has announced its consolidated financial results for the six-month period ended 30 June 2025, with revenue growth and improved gross profit. Group revenue rose to AED 2.61 billion, up 6.7% compared to H1 last year, largely driven by inorganic growth following recent acquisitions, which expanded scale and reach. Gross profit reached AED 599.4 million, an increase of 23% YoY, reflecting the effectiveness of Ghitha's strategic pivot toward margin-led growth. This performance highlights Ghitha's disciplined execution, combining integrated acquisitions with pricing and channel optimization. Streamlining of operations, cost control together with continued commercial discipline strengthened profitability of the Group. Falal Ameen, Ghitha Holding's CEO, said: 'Our first-half results demonstrate the strength of our strategy, with a clear focus on profitable growth, disciplined portfolio integration, and value-driven execution. Growth was driven by a combination of strategic acquisitions and internal margin expansion. We continue to reshape our customer and channel mix, placing greater emphasis on profitable verticals, pricing discipline, and high-performing segments, a model that has consistently proven to strengthen our profitability and long-term sustainability. We also launched the SAP S/4HANA program during the period, an important step in modernizing our digital backbone to support future scalability and national food security goals.'' As part of its broader strategy to expand across various food segments, Ghitha continued to strengthen key verticals through M&A. In H1 2025, its subsidiary Al Ain Farms acquired Al Jazira Poultry Farm, a leading UAE-based poultry producer. The transaction, along with the successful acquisition of Arabian Farms last year, has further strengthened Ghitha's position in the protein vertical and reflects its long-term commitment to scaling high-demand categories within the national food value chain. Ghitha will build on this momentum by accelerating its operational transformation and advancing integration across its value chain. With the digitalisation program underway and a robust M&A pipeline, the Group is well-positioned to drive scalable growth while reinforcing food system resilience in alignment with national priorities. In July 2025 (Q3), Ghitha Agriculture Holding LLC, a subsidiary of Ghitha Holding PJSC, signed a Sale and Purchase Agreement ('SPA') to sell 100% of its shareholding in 'AGRINV SPV RSC LTD' to NRTC Food Holding LLC, for a consideration of USD 47 million. This transaction forms part of Ghitha's ongoing strategy to optimize its portfolio structure by consolidating businesses under focused, high-performing platforms. Following completion, Ghitha will continue to consolidate AGRINV SPV RSC LTD through NRTC. The completion of the transaction is subject to the satisfaction of customary conditions under the SPA and receipt of all necessary regulatory approvals. About Ghitha Holding: Ghitha Holding PJSC is a private joint stock company incorporated in the Emirate of Abu Dhabi, United Arab Emirates. It operates as a subsidiary of International Holding Company (ADX: IHC). Ghitha emerged as an investment holding company; with its portfolio of subsidiaries and associates consisting of: Al Ain Farms, Marmum Dairy Farm, Al Jazira Poultry Farm, Arabian Farms, Al Ajban Poultry, Alliance Food Company, Zee Stores International, Agrinv (Al Hashemeya), Royal Horizon Holding, Abu Dhabi Vegetable Oil Company, Mirak, NRTC Group, Apex Investment PSC (ADX: APEX), Invictus Investments (ADX: INVICTUS), Anina Culinary, Al Jaraf Fisheries, International Food Industries, and HarvEst Foods. The Group is collectively engaged in dairy, poultry, fish, agriculture, food commodities, edible oils, trading and distribution. About International Holding Company (IHC): Established in 1999, IHC has become the most valuable holding company in the Middle East and one of the world's largest investment firms, with a market capitalization of AED 879.6 billion (USD 239.3 billion). Since then, it has transformed to represent a new generation of investors. IHC's commitment to sustainability, innovation, and economic diversification spans over 1,300 subsidiaries, driving growth across industries like Asset Management, Healthcare, Real Estate, Financial Services, IT, and more. IHC continually looks beyond the stand-alone value of its assets for opportunities, stepping outside of traditional approaches and artificial barriers to unlock opportunities across its portfolio, enabling sector-agnostic Dynamic Value Networks and creating results that are often much greater than the sum of their parts. At IHC, we take our responsibility to shareholders, customers, and employees seriously. Our commitment to responsible investment ensures that we create sustainable value by staying connected to the communities we serve, making a positive difference with every investment.
