Cognizant's Strong Q1 2025 Performance: Navigating Uncertainty with AI-Powered Growth

Cognizant reported a 7.45% revenue growth to USD 5.1 billion for Q1 2025, surpassing expectations. CEO Ravi Kumar S highlighted the impact of AI and platform capabilities on productivity and transformation. The company raised its revenue guidance and expanded its operating margin, despite a slight decline in employee count and bookings.

Cognizant, a leading IT company, has announced a remarkable 7.45% increase in revenue for the first quarter of 2025, totaling USD 5.1 billion. This significant growth exceeds analysts' expectations and illustrates the company's robust performance amid ongoing market challenges.

CEO Ravi Kumar S emphasized Cognizant's strategic position, attributing success to a diverse portfolio and AI-led platforms that enhance client productivity and cost-efficiency. Although workforce numbers witnessed a minor decline with a reduction of 500 employees, the organization remains optimistic about future growth prospects.

The company adjusted its full-year revenue guidance, now anticipating earnings of USD 20.5-21 billion in 2025. Despite a dip in first-quarter bookings, the adjusted operating margin improved, and Cognizant plans to return USD 1.7 billion to shareholders through buybacks and dividends, sustaining its investment flexibility.

(With inputs from agencies.)