CEO S Ravi Kumar highlighted robust demand for AI-powered IT services as a growth driver.
| Photo Credit:
Jeff Weiner
Cognizant Technology Solutions, a US-based technology company with a large presence in India, reported a 21 per cent increase in net profit to $663 million for the first quarter ended March 31, 2025, compared to $546 million in the same period last year. Revenue of $5.1 billion increased 7.5 per cent year over year.
The improved performance was due to growth across key verticals, such as health sciences, financial services, and products and services. However, the Communications, Media, and Technology verticals saw a decline.
In the first quarter, the company realised a gain of $62 million on the sale of an office complex in India, says the company’s financial statement.
“We started the year on a strong note, delivering revenue and adjusted operating margin ahead of our expectations, reflecting our steadfast focus on the execution of our strategy over the last several years,” S Ravi Kumar, CEO, Cognizant, in a release.
The company expects increased demand for Artificial Intelligence-powered information technology services. “We believe our differentiated AI and platform capabilities are helping clients navigate the near-term uncertainty while embarking on longer-term AI-led transformation,” said Kumar in the release.
Bookings
On a trailing twelve-month basis, bookings increased 3 per cent year-over-year to $26.7 billion, which represented a book-to-bill of approximately 1.3X. Bookings in the first quarter declined 7 per cent year-over-year. First quarter bookings included four large deals, which are deals with total contract value of $100 million or greater, the release said.
Employee Metrics
On a trailing twelve-month basis, Voluntary Attrition—Tech Services was 15.8 per cent in the first quarter of 2025, as compared to 15.9 per cent and 13.1 per cent in the fourth and first quarters of 2024, respectively. Total headcount as of March 31, 2025, was 336,300, down by 500 employees from the previous quarter, the release said.
Guidance
The company said that the second quarter revenue is expected to be $5.14 – $5.21 billion and full-year 2025 revenue is expected to be $20.5 – $21.0 billion, the release said.
Published on May 1, 2025
