Have you assessed how the international operations of Cognizant (CTSH Quick QuoteCTSH - Free Report) performed in the quarter ended September 2025? For this information technology consulting and outsourcing firm, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Our review of CTSH's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The recent quarter saw the company's total revenue reaching $5.42 billion, marking an improvement of 7.4% from the prior-year quarter. Next, we'll examine the breakdown of CTSH's revenue from abroad to comprehend the significance of its international presence.

A Dive into CTSH's International Revenue Trends

During the quarter, Rest of World contributed $345 million in revenue, making up 6.4% of the total revenue. When compared to the consensus estimate of $499.54 million, this meant a surprise of -30.94%. Looking back, Rest of World contributed $331 million, or 6.3%, in the previous quarter, and $342 million, or 6.8%, in the same quarter of the previous year.

Of the total revenue, $503 million came from United Kingdom during the last fiscal quarter, accounting for 9.3%. This represented a surprise of +1.32% as analysts had expected the region to contribute $496.46 million to the total revenue. In comparison, the region contributed $482 million, or 9.2%, and $482 million, or 9.6%, to total revenue in the previous and year-ago quarters, respectively.

Continental Europe accounted for 10% of the company's total revenue during the quarter, translating to $539 million. Revenues from this region represented a surprise of +7.9%, with Wall Street analysts collectively expecting $499.55 million. When compared to the preceding quarter and the same quarter in the previous year, Continental Europe contributed $520 million (9.9%) and $485 million (9.6%) to the total revenue, respectively.

Projected Revenues in Foreign Markets

Wall Street analysts expect Cognizant to report a total revenue of $5.3 billion in the current fiscal quarter, which suggests an increase of 4.3% from the prior-year quarter. Revenue shares from Rest of World, United Kingdom and Continental Europe are predicted to be 7.3%, 8.7%, and 9.6%, corresponding to amounts of $386.29 million, $458.35 million, and $508.82 million, respectively.

For the entire year, the company's total revenue is forecasted to be $21.04 billion, which is an improvement of 6.6% from the previous year. The revenue contributions from different regions are expected as follows: Rest of World will contribute 7.3% ($1.53 billion), United Kingdom 9% ($1.89 billion) and Continental Europe 9.6% ($2.02 billion) to the total revenue.

Final Thoughts

Relying on global markets for revenues presents both prospects and challenges for Cognizant. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

At present, Cognizant holds a Zacks Rank #2 (Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Reviewing Cognizant's Recent Stock Price Trends

The stock has increased by 7.7% over the past month compared to the 2.4% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Cognizant,has increased 6.6% during this time frame. Over the past three months, the company's shares have experienced a gain of 4.7% relative to the S&P 500's 8.2% increase. Throughout this period, the sector overall has witnessed a 16.5% increase.