Cognizant beats Q2 estimates with 8.1% revenue growth, raises full-year guidance

Nasdaq-listed IT services firm Cognizant posted stronger-than-expected results for the second quarter of calendar year 2025, with revenue rising 8.1% year-on-year to $5.25 billion.Cognizant’s performance was fueled by solid deal wins across geographies and sectors, marking the fourth consecutive quarter of annual revenue growth.
In constant currency terms, revenue increased 7.2%, which was well above the company’s projected range of 5% to 6.5% for the quarter.
Net income rose 14% year-on-year to $645 million, up from $566 million in the same period last year. The profit increase was supported by lower restructuring charges, favorable currency movements, and higher other income. However, compared to the previous quarter, net profit declined 2.7% due to a one-time gain recorded in Q1.Cognizant has revised its constant currency revenue growth forecast for 2025, tightening the range to 4%-6%, from its earlier projection of 3.5%-6%. The company maintained its adjusted operating margin guidance at 15.5%-15.7%, representing a year-over-year improvement of 20 to 40 basis points.
“Our Q2 performance surpassed the upper end of guidance, reflecting the strength of our strategic pivot toward building a future-ready, AI-enabled service portfolio,” said CEO Ravi Kumar S. He highlighted the company’s focus on agility, IP creation, and blending domain expertise with tech and operations to support clients’ evolving needs.During the earnings call, Kumar said that the growth was primarily driven by strong traction in the financial services and healthcare verticals, while technology services faced a sequential decline.

Cognizant reported record bookings of $27.8 billion on a trailing-twelve-month basis, up 6% year-on-year, with a book-to-bill ratio of 1.4. For the second quarter alone, bookings rose 18% year-on-year, boosted by two mega deals, each valued at over $1 billion.

The company also secured six other large contracts worth $100 million or more.

For the third quarter, Cognizant guided for revenue between $5.27 billion and $5.35 billion, in line with market expectations.

Earnings per share stood at $1.31 for the quarter ended June 30, up from $1.14 in the same quarter last year.

The IT major added 7,500 employees during the June quarter, mostly fresh graduates, bringing its total workforce to 343,800. It aims to onboard between 15,000 and 20,000 freshers in 2025.