Cognizant Q1 revenue up 7.4% to $5.1 billion

New Delhi: US-based IT major Cognizant, which has a substantial chunk of employees in India, has reported 7.45 per cent year-on-year growth in revenue to $5.1 billion for March quarter of 2025.

It had earned a revenue of $4.7 billion in Q1 2024. Cognizant follows January-December financial year. The company has raised its full-year growth guidance to 3.9-6.4 per cent, from 2.6-5.1 per cent earlier. It now expects a full-year (2025) revenue between $20.5-21 billion. Cognizant CEO Ravi Kumar S said the firm has started the year on a strong note, delivering revenue and adjusted operating margin ahead of expectations.

"The breadth and depth of our portfolio, combined with our deep industry and domain expertise, position us well as a strategic partner for clients in an increasingly complex macroeconomic environment. "Today, productivity, cost reduction and resiliency are especially important, and we believe our differentiated AI and platform capabilities are helping clients navigate the near-term uncertainty while embarking on longer-term AI-led transformation," he said in a statement.

Revenue in Q1 was contributed by Health Sciences ($1.6 billion), Financial Services ($1.4 billion), Products and Resources ($1.3 billion), and Communications, Media & Technology ($0.8 billion). Cognizant's total employee count fell by 500, reaching 3,36,300 at the end of Q1. On a trailing twelve-month basis, bookings increased 3 per cent year-over-year to $26.7 billion. However, bookings in the first quarter declined 7 per cent year-over-year. Q1 2025 bookings included four large deals (deals with a total contract value of $100 million or greater). "Our first quarter performance reflects strong operational rigour in a period of elevated uncertainty. We delivered revenue above the high end of our guidance and expanded the adjusted operating margin by 40 basis points year-over-year.