7 months ago
3
U.S. based IT large Cognizant, which has a important fig of employees successful India, connected Wednesday (October 29, 2025) reported a 53% driblet successful nett income for Q3 2025 to $274 million, deed by a one-time, non-cash income taxation disbursal of $390 million.
Cognizant – which follows a January-December fiscal year– had posted a nett income of $582 cardinal successful Q3 2024.
The company's revenues, however, roseate 7.3% year-over-year to $5,415 cardinal for the 4th ended September 2025, driven by gains coming successful from its investments into AI, and it has raised the little extremity of the gross maturation forecast for the afloat fiscal year.
Cognizant had earned a gross of $5,044 cardinal successful the year-ago period.
The Nasdaq-listed IT services steadfast raised the little extremity of its full-year gross maturation forecast, pegging it astatine $21.05-21.10 billion, arsenic against $20.7-21.1 cardinal earlier.
For the 4th quarter, Cognizant expects revenues to beryllium successful the scope of $5.27-5.33 billion.
Cognizant CEO Ravi Kumar S said Q3 2025 marks the company’s 5th consecutive 4th of year-over-year integrated gross growth, and its strongest sequential integrated maturation since 2022.
Kumar informed that Cognizant, implicit the past 2.5 years, has been investing successful transitioning from a accepted strategy integrator to an AI builder.
"AI builder is simply a institution which is looking astatine endeavor journeys connected AI productivity, personalising AI and really identifying an enterprise…We invested successful capability…intellectual spot platforms...that is starting to travel unneurotic for each the numbers," helium said, highlighting gains that accrued to the institution from the strategy.
Revenue per person, trailing for 12 months, has gone up by 8%, portion the borderline per idiosyncratic is up by 10%.
"...[this] is indicative of the information that we are starting to spot the clasp of AI successful enterprise, and we are starting to triumph marketplace share. With this performance, we are virtually astatine the apical of the winner's ellipse amongst our adjacent group, and are very, precise excited astir sustaining that momentum for the future,” helium asserted.
Cognizant’s three-vector AI builder strategy is gaining ground, and aboriginal investments successful AI-led platforms and IP connected the borderline volition assistance powerfulness maturation successful the years ahead, Kumar noted.
As overmuch arsenic 30% of the company’s codification is written by machines now, translating into greater productivity.
Elaborating connected the one-time hit, the institution successful its results connection said that successful July 2025, the One Big Beautiful Bill Act (OBBBA) was enacted successful the United States, which, among others, repealed the request to capitalise US probe and experimental costs.
"As a result, we bash not judge it is much apt than not that we volition realise our deferred taxation plus of $390 cardinal related to R&E costs capitalised extracurricular the U.S. These amounts would person different been disposable to offset definite aboriginal U.S. taxes connected our non-U.S. earnings, which, arsenic a effect of this repeal, we nary longer task to beryllium applicable to us," it said, explaining the one-time, non-cash income taxation disbursal of $390 cardinal recorded successful Q3.
Cognizant’s third-quarter bookings declined 5% year-over-year, but included six ample deals(those with a full declaration worth of $100 cardinal oregon greater).
The institution added 6,000 employees, mostly freshers, during the July-September period, bringing its full headcount to 349,800 astatine the extremity of the quarter.
Cognizant absorption said the steadfast is connected way to prosecute 15,000-20,000 freshers this year.
Jatin Dalal, Chief Financial Officer, said the institution observed broad-based maturation crossed segments and geographies, including noteworthy show successful North America.
“We person accrued our full-year gross guidance to 6.0-6.3% year-over-year changeless currency growth, supra our anterior scope and deployed $1 cardinal done stock repurchases done Q3, underscoring our assurance successful our maturation strategy,” helium said.
He added that the institution has implemented hikes for 80% of its employees, effectual November 1.
Cognizant’s apical absorption said the institution has importantly reduced its dependency connected H1B and accrued section hiring, alongside stepping up investments successful automation, and does not spot immoderate worldly interaction of the accrued H1B fees connected its finances and operations.
The institution repurchased 6.3 cardinal shares for $450 cardinal during the 3rd 4th nether its stock repurchase program. As of September 30, 2025, determination was $2.2 cardinal remaining nether the stock repurchase authorisation. In October 2025, the institution declared a quarterly currency dividend of $0.31 per stock for shareholders of grounds connected November 18, 2025. This dividend volition beryllium payable connected November 26, 2025.
