Cognizant’s Q2 profit rises 14%, updates revenue guidance

Cognizant Technology Solutions, the US-headquartered IT services giant, has reported 14% year-over-year increase in its net profit at $645 million, up from $566 million in the same period last year.

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For the first half of 2025, the company’s net profit increased to $1.31 billion, compared to $1.11 billion during the same period in 2024, as stated in its latest filing.

Quarterly revenue rose 8.1% year-over-year (7.2% in constant currency) to $5.25 billion, surpassing the high end of its guidance range.

“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 CEO Ravi Kumar S.

He credited the company’s continued investment in talent, platforms, and AI infrastructure for delivering a fourth consecutive quarter of organic revenue growth and margin expansion.

Bookings in the second quarter rose 18% year-over-year and included six large deals, two of which had total contract values exceeding $1 billion. On a trailing twelve-month basis, bookings reached $27.8 billion, reflecting a 6% increase and a book-to-bill ratio of approximately 1.4x.

Segment-wise, the Health Sciences division led with $1.55 billion in revenue (up 6.2% Y/Y), followed closely by Financial Services at $1.55 billion (up 6.9%). Products & Resources recorded the strongest growth at 16%, reaching $1.31 billion, while Communications, Media & Technology brought in $841 million, up 3.1% Y/Y.

CFO Jatin Dalal noted that in the first half of 2025, Cognizant achieved 7.7% constant currency revenue growth and a 40-basis-point improvement in adjusted operating margin, resulting in an 11% increase in adjusted EPS. “We now expect to return approximately $2.0 billion to shareholders this year, reinforcing our commitment to returning excess capital and our confidence in our long-term strategy,” Dalal added.

Geographically, North America remained the largest market, generating $3.91 billion in revenue (up 8.1% Y/Y), followed by Europe with $1.00 billion (up 9.6%) and the Rest of World region contributing $331 million (up 4.7%).

The company ended the quarter with a global workforce of 343,800 employees, reflecting a net addition of 7,500 over both Q1 2025 and Q2 2024.

Cognizant expects revenue for the September 2025 quarter to range between $5.27 billion and $5.35 billion, representing a year-over-year growth of 4.6% to 6.1%.

Full-year revenue guidance stands at $20.7 billion to $21.1 billion, projecting annual growth of 4.7% to 6.7%.

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