Cognizant posts better than expected Q4 results; to grow revenue at 3.5-6% in 2025

Bengaluru, 6 February: Nasdaq-listed IT services firm, Cognizant reported better than expected fourth quarter performance, raising hopes of demand revival in the global IT industry.

The IT firm also raised its revenue guidance for 2025 as compared to last year.

The company posted a net profit of $558 million, an increase of 2.1 per cent over the same period last year when profit stood at $546 million.

The IT firm’s revenue during October-December period was at $5.1 billion, up 6.7 per cent year-on-year. The US-headquartered company, which has more than 70 per cent of its staffers operating in India, managed to meet the higher end its revenue guidance during the fourth quarter. Cognizant follows January-December financial year cycle.

“I am deeply grateful to our employees for their commitment to our strategic priorities and rigorous execution, which drove fourth quarter revenue growth to the high end of our guidance range. We exited the year with momentum — closing a record 29 large deals during the year — highlighting the effectiveness of our strategy,” said Ravi Kumar S, CEO of Cognizant.

For the last fiscal year (FY24), revenue grew 1.9 per cent YoY in constant currency (CC) terms to $19.7 billion, which included around 200 basis points of growth from subsidiaries Thirdera and Belcan.

The company expects better revenue growth prospects in the 2025 fiscal year. It has projected its revenue to grow in the range of 3.5 per cent to 6 per cent in constant currency terms this year.

“We expect that our improved cost structure, achieved through the successful completion of our NextGen program, will help us sustain our pace of strategic investments in support of profitable growth. Our initial 2025 guidance calls for 3.5% to 6.0% constant currency revenue growth and 20 to 40 basis points of full-year Adjusted Operating Margin expansion,” Jatin Dalal, Chief Financial Officer of Cognizant said.