New Delhi, Oct 29: US-based IT major Cognizant, which has a substantial number of employees in India, on Wednesday reported a better-than-expected growth with its revenue rising 7.3 per cent year-over-year
to USD 5,415 million for the quarter ended September 2025.
Revenue Beats Guidance Range
In the last quarter, the company had guided its third-quarter revenue to be between USD 5.27-5.35 billion. Cognizant - which follows a January-December financial year- had earned a revenue of USD 5,044 million in Q3 2024.
Company Raises Full-Year Revenue Forecast
The Nasdaq-listed IT services firm raised the lower end of its full-year revenue growth forecast, pegging it at USD 21.05-21.10 billion, as against USD 20.7-21.1 billion earlier.
CEO Highlights Strong Deal Momentum
Cognizant CEO Ravi Kumar S said this marks the company's fifth consecutive quarter of year-over-year organic revenue growth, and its strongest sequential organic growth since 2022.
"We maintained our large deal momentum, signing six large deals in the quarter, bringing our year-to-date total to 16, with 40 per cent growth in large deal TCV (Total Contract Value) year-to-date compared to the same period last year.
"We believe our three vector AI builder strategy is gaining traction and we expect our early investments in AI-led platforms and IP on the edge will help power growth in the years ahead," he said.
Large Deals and Employee Growth
Cognizant's third-quarter bookings included six deals of TCV USD 100 million or higher. The company added 6,000 employees during the July-September period, bringing its total headcount to 349,800 at the end of the quarter.
CFO Cites Broad-Based Growth
Jatin Dalal, Chief Financial Officer, said the company observed broad-based growth across segments and geographies, including noteworthy performance in North America.
"We have increased our full-year revenue guidance to 6-6.3 per cent year-over-year constant currency growth, above our prior range and deployed USD 1 billion through share repurchases through Q3, underscoring our confidence in our growth strategy," he said.
Share Repurchases and Dividend Declaration
The company repurchased 6.3 million shares for USD 450 million during the third quarter under its share repurchase program. As of September 30, 2025, there was USD 2.2 billion remaining under the share repurchase authorisation.
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In October 2025, the company declared a quarterly cash dividend of USD 0.31 per share for shareholders of record on November 18, 2025. This dividend will be payable on November 26, 2025.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
