 "Cognizant Q1 net income rises 21.4%; maintains full year revenue guidance")
IT services major Cognizant has kept its revenue growth guidance for the full year unchanged at 3.5–6 per cent in constant currency. This outlook is supported by a revival in discretionary spending in the banking, financial services and insurance (BFSI) segment, AI-led transformation across the client ecosystem, and inorganic growth.
The company reported net income of $663 million for the first quarter of calendar year 2025 (Q1 CY25), a 21.4 per cent increase over $546 million in the same quarter of CY2024.
Revenue for Q1 CY25 grew 8.2 per cent in constant currency to $5.1 billion, in line with its guidance. The acquisition of Belcan contributed around 400 basis points to the year-on-year revenue growth for 2025.
"We started the year on a strong note, delivering revenue and adjusted operating margin ahead of our expectations, reflecting our steadfast focus on the execution of our strategy over the last several years," said Chief Executive Officer Ravi Kumar S.
Kumar added: "Today, productivity, cost reduction and resiliency are especially important, and we believe our differentiated AI and platform capabilities are helping clients navigate the near-term uncertainty while embarking on longer-term AI-led transformation."
The company’s total contract value (TCV) for Q1 was down 7 per cent year-on-year. However, the trailing 12-month TCV stood at $26.7 billion.
Growth during the quarter was broad-based across verticals and geographies. Among verticals, health sciences—Cognizant’s largest segment—grew 11.4 per cent year-on-year, financial services rose 6.5 per cent, and products and resources was up 13.6 per cent, all in constant currency.