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Cognizant beats estimates in Q2 as net profit rises 14%

The revenue of Cognizant, which follows a January to December fiscal, in the June quarter was up 8.1% year-on-year.

Express News Service

BENGALURU: Nasdaq-listed Cognizant has posted a 14% y-o-y increase in its net profit to $645 million for the quarter ended June 30, 2025 compared to $566 million it reported a year ago. The revenue of Cognizant, which follows a January to December fiscal, in the June quarter was up 8.1% y-o-y at $5.25 billion.

Its 2025 constant currency revenue growth guidance narrowed to 4-6%, while the 2025 adjusted operating margin guidance is unchanged at 15.5-15.7%. The company's operating margin stood at 15.6%.

"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," said Ravi Kumar S, Chief Executive Officer.

"Our investments in talent, platforms and AI infrastructure drove our fourth-straight quarter of organic year-over-year revenue growth, another quarter of margin expansion and helped us accelerate bookings, including two $1 billion deals," he added.

On a trailing-twelve-month basis, its bookings increased 6% y-o-y to $27.8 billion. Bookings in the second quarter increased 18% y-o-y. Its second quarter bookings included six large deals, with total contract value of $100 million or more. Of these, two deals had a total contract value of over $1 billion each, the company said in a statement.

Jatin Dalal, Chief Financial Officer, during an earnings conference call, said they have not yet taken a decision on salary increase. "Our endeavour is to cover a vast majority of our employees during the second half of this year as and when we decide," he added.

On a trailing-twelve-month basis, its voluntary attrition was 15.2% in the second quarter of 2025, as compared to 15.8% and 13.6% in the first quarter of 2025 and second quarter of 2024, respectively. Its total headcount as of June 30, 2025 was 343,800, an increase of 7,500 from both Q1 2025 and Q2 2024. The IT firm plans to hire 15,000-20,000 freshers in 2025.

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