Cognizant Surpasses Revenue Expectations with Strong AI Growth Strategy

Cognizant, a US-based IT giant, reported a year-over-year revenue growth of 7.3% in Q3 2025, reaching $5.415 billion. The company experienced robust performance across geographies, fueled by its AI initiatives and large deal momentum. Cognizant also increased its full-year revenue guidance and engaged in significant share repurchases.

US-based IT leader Cognizant, recognized for its substantial workforce in India, has reported an impressive 7.3% year-over-year revenue growth for the quarter ended September 2025, with earnings totaling $5.415 billion. This performance exceeded earlier projections set at $5.27-5.35 billion.

Cognizant's strategy pivots on embracing AI and securing large-scale deals, as evidenced by signing six major agreements in the quarter, which contributed to a total of 16 deals this year. The firm's robust approach is reflected in a 40% boost in large deal Total Contract Value compared to the previous year.

In response to its expanding business operations and employee base—adding 6,000 new roles this quarter—Cognizant has raised its full-year revenue outlook and executed strategic financial maneuvers, including share repurchases worth $450 million as part of a $2.2 billion authorisation. A quarterly cash dividend has been declared, underlining the company's commitment to shareholder returns.

(With inputs from agencies.)