Cognizant’s Profit Up by 14% in June Quarter

New Delhi, July 31 – Cognizant delivered a strong performance in the June 2025 quarter, posting a 14% year-on-year rise in net income to USD 645 million. This growth was fueled by consistent deal momentum -effective execution across key verticals, and increasing enterprise demand for AI-driven solutions, the company said

. The company also benefited from operational efficiencies and disciplined cost management, supporting improved margins. With a growing pipeline of digital transformation and generative AI projects; Cognizant reaffirmed its commitment to innovation and strategic investments, positioning itself for continued momentum in the second half of FY25. The full-year 2025 revenue is expected to be USD 20.7-21.1 billion, growth of 4.7-6.7 per cent (4-6 per cent in constant currency).

Q2 2025 Highlights

Cognizant delivered a standout performance in Q2 2025 (quarter ended June 30), reporting quarterly revenue of USD 5.25 billion, an 8.1% YoY increase (7.2% in constant currency), surpassing the high end of its guidance range. Net income rose 13.9% YoY to USD 645 million, delivering diluted earnings per share (EPS) of USD 1.31, both performance and EPS beating street expectations of USD 1.26.

Management highlighted strong momentum from large contracts-including two mega-deals with total contract value exceeding USD 1 billion each—driving trailing 12‑month bookings to USD 27.8 billion, up 6% YoY. Adjusted operating margin expanded to 15.6%, up 40 basis points YoY, supported by improved delivery discipline and AI‑enabled productivity gains.

Cognizant has raised its full-year FY25 revenue guidance to USD 20.7-21.1 billion, reflecting a constant currency growth projection of 4.0-6.0%, while maintaining adjusted operating margin guidance of 15.5-15.7%, implying further expansion of 20-40 bps. For Q3 FY25 (ending September), the company expects revenue of USD 5.27-5.35 billion, up 4.6–6.1% YoY (or 3.5-5.0% in constant currency).

This strong financial beat reflects Cognizant’s strategic acceleration in AI-led digital services, large-deal momentum, and disciplined cost management-positioning the company well amid improving enterprise IT spend and macro volatility.

Full-Year FY25 Outlook Raised

Building on a strong first-half performance and substantial deal momentum, Cognizant has revised its full-year FY25 revenue guidance upward. The company now expects revenue in the range of USD 20.7-21.1 billion, reflecting 4.7-6.7% growth year-on-year (or 4-6% in constant currency). For Q3 FY25 (ending September), Cognizant forecasts revenue between USD 5.27-5.35 billion, representing 4.6-6.1% YoY growth (or 3.5-5% in constant currency). The raised outlook signals growing confidence in execution, backed by strong demand and improved client spending trends, particularly in digital transformation and AI-powered services.

Mega Deals and Strategic Momentum

Cognizant’s Q2 FY25 success was anchored by six large deal wins, each exceeding USD 100 million in total contract value. Impressively, two of these crossed the USD 1 billion mark, representing some of the largest contracts in the company’s history. CEO Ravi Kumar S attributed this momentum to Cognizant’s sharpened strategic focus, stating, “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.” These wins highlight Cognizant’s growing relevance in helping enterprises modernize tech stacks and unlock long-term value from generative AI, cloud, and platform engineering.

Capital Return and Margin Outlook

CFO Jatin Dalal reaffirmed the adjusted operating margin outlook and noted, “We now expect to return approximately USD 2 billion to shareholders this year, reinforcing our commitment to returning excess capital and confidence in our long-term strategy.”

Headcount and Attrition Trends

Total headcount as of June 30, 2025, reached 343,800, an increase of 7,500 employees over both Q1 2025 and Q2 2024 and the voluntary attrition in tech services stood at 15.2 percent, compared to 15.8 percent in Q1 2025 and 13.6 percent in Q2 2024. Cognizant’s strong Q2 showing and upward revision of guidance underscore its growing momentum in high-value digital transformation projects, including AI and agentic solutions, that are unlocking fresh IT spending across global clients.

About Company

Cognizant is a leading global IT services and consulting company headquartered in Teaneck, New Jersey. Listed on the Nasdaq, the company provides digital transformation, technology, consulting, and operations services to clients across industries such as healthcare, financial services, manufacturing, and communications. With a strong focus on innovation, Cognizant helps enterprises modernize their technology ecosystems, adopt AI-driven solutions, and improve operational agility. Operating on a January–December fiscal year, the company maintains a significant global presence with delivery centers in North America, India, and other key regions.

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