Cognizant Q2 Profit Up 14%, Lifts Annual Guidance
Cognizant reported a 14% rise in net profit for the second quarter of 2025, reaching $645 million, or $1.31 per share, surpassing market expectations. Revenue stood at $5.25 billion, showing an 8.1% increase year-on-year, driven by steady demand across key sectors and geographies.
Full-Year Outlook Raised
Buoyed by better-than-expected results, Cognizant revised its full-year revenue growth forecast to a range of 4% to 6%, up from the earlier guidance of 3.5% to 6%. The company expects an adjusted operating margin between 15.5% and 15.7% for the year.
Mega Deals and AI Demand Drive Growth
Cognizant secured multiple high-value contracts, including two deals valued at over $1 billion each. In total, the company closed six contracts exceeding $100 million in Q2. The rise in bookings, which hit $27.8 billion with a 1.4x book-to-bill ratio, was attributed to increasing demand for artificial intelligence solutions and digital transformation services.
Workforce and Operational Efficiency
Cognizant’s headcount rose to 343,800 by the end of June, an increase of 7,500 from the previous quarter. The company also reported a drop in voluntary attrition in its tech services segment to 15.2%, indicating improved employee retention.
Shareholder Returns and Future Plans
In 2025, Cognizant plans to return approximately $2 billion to shareholders through a combination of dividends and share buybacks. For Q3, the company expects revenue between $5.27 billion and $5.35 billion, reflecting continued confidence in its strategic direction and AI-driven growth initiatives.
