Have you looked into how Cognizant (CTSH Quick QuoteCTSH - Free Report) performed internationally during the quarter ending June 2025? Considering the widespread global presence of this information technology consulting and outsourcing firm, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

While analyzing CTSH's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $5.25 billion, marking an increase of 8.1% from the year-ago quarter. We will next turn our attention to dissecting CTSH's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Dive into CTSH's International Revenue Trends

Of the total revenue, $482 million came from United Kingdom during the last fiscal quarter, accounting for 9.2%. This represented a surprise of +5.4% as analysts had expected the region to contribute $457.32 million to the total revenue. In comparison, the region contributed $457 million, or 8.9%, and $444 million, or 9.2%, to total revenue in the previous and year-ago quarters, respectively.

Continental Europe generated $520 million in revenues for the company in the last quarter, constituting 9.9% of the total. This represented a surprise of +7.42% compared to the $484.1 million projected by Wall Street analysts. Comparatively, in the previous quarter, Continental Europe accounted for $493 million (9.6%), and in the year-ago quarter, it contributed $470 million (9.7%) to the total revenue.

Rest of World accounted for 6.3% of the company's total revenue during the quarter, translating to $331 million. Revenues from this region represented a surprise of -36.2%, with Wall Street analysts collectively expecting $518.81 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of World contributed $311 million (6.1%) and $316 million (6.5%) to the total revenue, respectively.

Prospective Revenues in International Markets

The current fiscal quarter's total revenue for Cognizant, as projected by Wall Street analysts, is expected to reach $5.33 billion, reflecting an increase of 5.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: United Kingdom is anticipated to contribute 9.3% or $496.46 million, Continental Europe 9.4% or $499.55 million and Rest of World 7.2% or $381.18 million.

Analysts expect the company to report a total annual revenue of $20.9 billion for the full year, marking an increase of 5.9% compared to last year. The expected revenue contributions from United Kingdom, Continental Europe and Rest of World are projected to be 8.9% ($1.87 billion), 9.5% ($1.99 billion) and 7.6% ($1.58 billion) of the total revenue, in that order.

The Bottom Line

The dependency of Cognizant on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

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.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Cognizant currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Reviewing Cognizant's Recent Stock Price Trends

Over the past month, the stock has lost 12.8% versus the Zacks S&P 500 composite's 0.6% increase. The Zacks Computer and Technology sector, of which Cognizant is a part, has risen 3.4% over the same period. The company's shares have declined 10.8% over the past three months compared to the S&P 500's 11.7% increase. Over the same period, the sector has risen 20.2%