Unicaus NEWS
Cognizant – which follows a January-December monetary yr– had posted a internet revenue of $582 million in Q3 2024.
The firm’s revenues, nonetheless, rose 7.3% year-over-year to $5,415 million for the quarter ended September 2025, pushed by positive factors coming in from its investments into AI, and it has raised the decrease finish of the income progress forecast for the complete fiscal yr.
Cognizant had earned a income of $5,044 million within the year-ago interval.
The Nasdaq-listed IT companies agency raised the decrease finish of its full-year income progress forecast, pegging it at $21.05-21.10 billion, as towards $20.7-21.1 billion earlier.
For the fourth quarter, Cognizant expects revenues to be within the vary of $5.27-5.33 billion.
Cognizant CEO Ravi Kumar S stated Q3 2025 marks the corporate’s fifth consecutive quarter of year-over-year natural income progress, and its strongest sequential natural progress since 2022.
Kumar knowledgeable that Cognizant, over the past 2.5 years, has been investing in transitioning from a conventional system integrator to an AI builder.
“AI builder is a company which is looking at enterprise journeys on AI productivity, personalising AI and actually identifying an enterprise…We invested in capability…intellectual property platforms…that is starting to come together for all the numbers,” he stated, highlighting positive factors that accrued to the corporate from the technique.
Revenue per particular person, trailing for 12 months, has gone up by 8%, whereas the margin per particular person is up by 10%.
“…[this] is indicative of the truth that we’re beginning to see the embrace of AI in enterprise, and we’re beginning to win market share. With this efficiency, we are actually on the prime of the winner’s circle amongst our peer group, and are very, very enthusiastic about sustaining that momentum for the long run,” he asserted.
Cognizant’s three-vector AI builder technique is gaining floor, and early investments in AI-led platforms and IP on the sting will assist energy progress within the years forward, Kumar famous.
As a lot as 30% of the corporate’s code is written by machines now, translating into better productiveness.
Elaborating on the one-time hit, the corporate in its outcomes assertion stated that in July 2025, the One Big Beautiful Bill Act (OBBBA) was enacted within the United States, which, amongst others, repealed the requirement to capitalise US analysis and experimental prices.
“As a result, we do not believe it is more likely than not that we will realise our deferred tax asset of $390 million related to R&E costs capitalised outside the U.S. These amounts would have otherwise been available to offset certain future U.S. taxes on our non-U.S. earnings, which, as a result of this repeal, we no longer project to be applicable to us,” it stated, explaining the one-time, non-cash revenue tax expense of $390 million recorded in Q3.
Cognizant’s third-quarter bookings declined 5% year-over-year, however included six massive offers(these with a complete contract worth of $100 million or better).
The firm added 6,000 staff, principally freshers, through the July-September interval, bringing its whole headcount to 349,800 on the finish of the quarter.
Cognizant administration stated the agency is on observe to rent 15,000-20,000 freshers this yr.
Jatin Dalal, Chief Financial Officer, stated the corporate noticed broad-based progress throughout segments and geographies, together with noteworthy efficiency in North America.
“We have elevated our full-year income steering to six.0-6.3% year-over-year fixed foreign money progress, above our prior vary and deployed $1 billion via share repurchases via Q3, underscoring our confidence in our progress technique,” he stated.
He added that the corporate has carried out hikes for 80% of its staff, efficient November 1.
Cognizant’s prime administration stated the corporate has considerably diminished its dependency on H1B and elevated native hiring, alongside stepping up investments in automation, and doesn’t see any materials influence of the elevated H1B charges on its funds and operations.
The firm repurchased 6.3 million shares for $450 million through the third quarter underneath its share repurchase program. As of September 30, 2025, there was $2.2 billion remaining underneath the share repurchase authorisation. In October 2025, the corporate declared a quarterly money dividend of $0.31 per share for shareholders of report on November 18, 2025. This dividend will probably be payable on November 26, 2025.
