Cognizant Q1 CY25 Results: Net profit up 21%, revenue grows 8.2%; guidance unchanged

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.

Full-year revenue guidance unchanged

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.

Sectoral performance: Health sciences leads

• 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

Geography-wise revenue

Margins, hiring and payouts

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.

Q2 outlook cautious

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.