Cognizant, a major IT services provider, has maintained its full-year revenue growth guidance of 3.5-6 percent in constant currency. The banking, financial services, and insurance (BFSI) industry's recovery in discretionary spending, AI-driven client ecosystem transformation, and inorganic growth all lend credence to this prediction.
Cognizant reported a net profit of $663 million for the first quarter of 2025, up 21.4% from $546 million for the same period in CY24.
First-quarter sales for CY25 reached $5.1 billion at the 8.2% constant currency growth level approximately as forecasted. Belcan's acquisition provided the company with 400 basis points of increased revenue throughout 2025.
The company functions under a January-December calendar year while most Indian IT service providers use an April-March financial year.
Chief Executive Ravi Kumar S. reported that the company launched its year with impressive performance due to concentrated execution of its several-year strategy.
According to Kumar the present focus on enhancing productivity and reducing costs and building resilience becomes vital since our platform capabilities helps clients drive both near-term stability and long-term AI transformation.
The business recorded a 7% decrease in total contract value (TCV) between the first quarter of this year compared to first quarter of last year. TCV data from the past year shows an amount of $26.7 billion.
Vertical expansion and geographical market expansion were spread across various business zones throughout the quarter. Her health sciences segment recorded the largest growth at 11.4 percent while financial services rose 6.5 percent and products and resources experienced 13.6 percent growth during this period when measured in constant currency terms.
The company achieved 9.7% revenue growth in the United States and 3% growth in Europe as well as 7.1% growth in the rest of the world when measured in constant currency.
"Our first-quarter performance reflects strong operational rigour during a period of high uncertainty. Revenue exceeded our high-end guidance, and adjusted operating margin increased by 40 basis points year on year. This resulted in adjusted EPS growth of 10% year on year, outpacing revenue growth," said Chief Financial Officer Jatin Dalal.
Dalal went on to say that by 2025, Cognizant expects to return approximately $1.7 billion to shareholders through buybacks and dividends, while maintaining the flexibility to invest in growth.
The company will recruit 20000 new staff members during calendar year 2025. Cognizant reduced its staff numbers by 500 over quarter one to reach a total workforce of 336,300.
The company expects second-quarter revenue in constant currency to grow 5% to 6.5% which represents a -1% to 5% sequence of growth.
Kumar declared that the company remained unaffected by tariff wars which prevented project ramp-downs. "Our company has received no responses from any of our business clients until this point. Federal contracts remain a new territory for our organization. Belcan has obtained limited projects although they remain small."
