News

IT major Cognizant kicked off calendar year 2025 on a strong note, with net income rising 21.4 per cent year-on-year to $663 million for the first quarter (Q1 CY25). The company’s revenue grew 8.2 per cent in constant currency to $5.1 billion, aided by robust demand across verticals and a boost from its Belcan acquisition, which contributed 400 basis points to year-on-year growth.

Unlike its Indian peers that follow an April–March fiscal, Cognizant follows a January–December calendar year, making this the company’s Q1 result for 2025.

Cognizant maintained its full-year revenue growth forecast at 3.5–6 per cent in constant currency, banking on AI-led transformation, BFSI recovery, and inorganic growth. “We delivered revenue and margins ahead of expectations,” said CEO Ravi Kumar S, adding that AI and productivity-linked transformation are driving client engagement.

Health sciences, Cognizant’s biggest segment, grew 11.4 per cent

Financial services rose 6.5 per cent

Products and resources saw a 13.6 per cent jump, all in constant currency

US: Up 9.7 per cent

Europe: Up 3 per cent

Rest of the world: Up 7.1 per cent

Adjusted operating margin improved by 40 basis points, driving a 10 per cent rise in adjusted EPS, said CFO Jatin Dalal. Cognizant plans to return $1.7 billion to shareholders in 2025 via dividends and buybacks.

On the hiring front, the firm will onboard 20,000 freshers this year, but Q1 headcount fell by 500, taking total employee strength to 336,300.

For Q2, the company guided for 5 - 6.5 per cent revenue growth, with sequential performance ranging from -1 per cent to +5 per cent. Despite global uncertainty, Cognizant said it hasn’t seen project ramp-downs linked to tariff wars.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

LATEST NEWS