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Cognizant Technology Solutions on Wednesday beat its own revenue guidance, with a 6.5 per cent Constant Currency (CC) revenue growth at $5.42 billion for the quarter ended September 2025 (Q3). On a sequential basis revenue went up 2.8 per cent (CC). The net profit of the US-based IT services company, which has a major presence in Chennai, was down 53 per cent drop at $274 million due to a one-time non-cash income tax expense of $390 million. In its exchange filing, Cognizant attributed the US Government’s One Big Beautiful Bill Act, which repealed the requirement to capitalise US research and experimental costs. Owing to this, the company no longer expects to use its $390 million deferred tax asset tied to R&E costs done outside the US, Cognizant said. The IT major saw a 70-basis points year-on-year (y-o-y) increase in its adjusted operating margins of 16 per cent. For the full year 2025, the company has upped the lower end of its guidance and expects revenue growth of 6.0 to 6.3 per cent in constant currency terms. For the fourth quarter, revenue growth is expected to be in the 2.5 to 3.5 per cent range in constant currency. Cognizant’s recently completed acquisitions contributed approximately 250 basis points to year-over-year revenue growth and approximately 350 basis points to the year-to-date revenue growth for Q3 2025 and YTD Q3 2025 periods respectively. “The third quarter represents our fifth consecutive quarter of year-over-year organic revenue growth and our 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 year-to-date compared to the same period last year. I am proud of our year-to-date top-tier revenue growth, which is a testament to our differentiated capabilities at the intersection of technology and industry,“ said Ravi Kumar S, CEO, Cognizant. Kumar added that the company’s three vector AI builder strategy is gaining traction and mentioned that it expects early investments in AI-led platforms and IP on the edge to power growth in the coming years. Cognizant reported a headcount of 349,800 as of September 30, 2025, an increase by 9,700 on a year-on-year basis and 6,000 on sequential basis. Voluntary attrition (on a trailing 12-month basis) was 14.5 per cent, compared to 14.6 per cent in the year ago quarter. On a trailing-twelve-month basis, the company’s bookings increased 5 per cent year-on-year to $27.5 billion, representing a book-to-bill ratio of approximately 1.3x. The company’s bookings for the quarter included six large deals (over $100 million). Geographically, North America showed the highest growth at 7.8 per cent y-o-y. The Products & Resources was the highest growth vertical, growing revenue at 11.4 per cent y-o-y. Both America and Products vertical were however partly aided by Cognizant’s recent acquisition of Belcan. Published on October 29, 2025
