Cognizant's Stellar Year: AI-Driven Growth and Strategic Investments

Cognizant reports an 18.7% net income increase in the December quarter, driven by AI efficiencies and strategic M&A. The company's revenues rose 7% in 2025, with 28 significant deals and increased contract value. Cognizant plans to expand its workforce strategically while increasing revenue per employee.

Cognizant, a major US-based IT firm with extensive operations in India, reported an 18.7% increase in net income, reaching USD 648 million in the December quarter. The company's revenue aligned with estimates at USD 5,333 million, marking a 4.9% year-on-year rise.

The growth was propelled by AI-driven efficiencies and robust performance in the financial services sector. Cognizant secured a remarkable USD 1 billion 'mega deal' as part of its 2025 achievements. The firm anticipates first-quarter 2026 revenues between USD 5.36 billion and USD 5.44 billion.

Cognizant's CEO, Ravi Kumar S, highlighted the impact of AI platforms and investments in talent. The company aims to hire 24,000 to 25,000 fresh employees in 2026, expanding its workforce strategically. Tax incentives are expected to enhance India's position as a global hub for AI and services.

(With inputs from agencies.)