Cognizant net profit rises 18.6% in fourth quarter of 2025

Cognizant, the Teaneck, New Jersey, headquartered technology services company, which has a large employee presence in India, reported a 18.6% rise in net profit for the fourth quarter of 2025 and remained optimistic on the growth outlook for 2026.

Cognizant, which follows the January to December financial year calendar, reported a net profit of $648 million for the fourth quarter of 2025. In comparison, the number was $546 million in the same period of 2024.

The revenues for the fourth quarter of 2025 stood at $5.3 billio,n which was 4.9% year-on-year. This growth in revenue marginally beat the guidance it had provided.

On the performance of the company, Cognizant CEO Ravi Kumar remarked that its AI builder strategy was put in motion in 2025 and returned to the ‘winner’s circle’ two years ahead of the target.

"We have invested in our talent, strengthened our partnership ecosystem and advanced our AI platforms to help clients scale AI across the enterprise. These investments helped us sign 28 large deals in 2025, with large deal TCV growth of nearly 50% year-over-year. We are confident that the foundation we built over the last three years positions us well to carry this momentum in the years ahead," he said.

For the full year of 2025, Cognizant reported a revenue of $21.1 billion, which is a 7% increase when compared to 2024. The company has provided a revenue growth guidance of 6-6.3% for 2025. Though the net profit growth remained flat.

The operating profit margin touched 16.1%, which was an increase of 140 basis points when compared to 2024.

"In 2025, we outperformed the high end of our guidance ranges, combining top-tier revenue growth with 50 basis points of expanded adjusted operating margin and 11% adjusted EPS growth," said Jatin Dalal, Chief Financial Officer, Cognizant.

For the first quarter of 2026, it has guided for revenue in the range of $5.36 billion to $5.44 billion, implying a growth of 4.8% to 6.3%. For the full year of 2026, it has projected a revenue of $22.14 billion to $22.66 billion, which translates into growth of 4.9% to 7.4%.

“Our initial 2026 guidance reflects sustained momentum, backed by our commitment to advancing our strategic investments aimed at accelerating our AI-led growth strategy," the CFO said.

The employee headcount of Cognizant at the end of 2025 stood at 351,600, which was an increase of 14,800 when compared to 2024. The company said it will hire about 20,000 freshers in India in 2026.