Cognizant Q1 2025 revenue surges 7.5% on AI momentum and acquisitions
NEW JERSEY, UNITED STATES — Cognizant posted stronger-than-expected Q1 2025 results, with revenue hitting $5.1 billion for 2025, signaling confidence in its growth playbook despite macroeconomic headwinds.
AI and acquisitions fuel growth beyond expectations
Cognizant’s revenue surged 7.5% year-over-year to $5.1 billion, surpassing guidance, with recent deals adding 400 basis points to growth.
Chief executive officer (CEO) Ravi Kumar S credited the outperformance to AI-driven solutions, like its NVIDIA-powered Neuro platform, and expanded partnerships with firms like Boehringer Ingelheim and Docusign.
“We started the year on a strong note, delivering revenue and adjusted operating margin ahead of our expectations, reflecting our steadfast focus on the execution of our strategy over the last several years,” Kumar notes.
Cognizant is doubling down on AI-led transformations, from smart manufacturing with OMRON to dispute resolution for banks via ServiceNow.
Shareholder returns climb amid strategic investments
Cognizant returned $364 million to shareholders in Q1 via buybacks and dividends, with plans to deliver $1.7 billion for the full year.
CFO Jatin Dalal emphasized balancing capital returns with growth investments, including a 190 million share repurchase and a 0.31 per share dividend.
Despite a 7% yearly drop in Q1 bookings, the firm secured four large deals, each over $100 million. Its cash flexibility stems partly from a $62 million gain from selling an Indian office asset, boosting generally accepted accounting principles (GAAP) margins to 16.7%.
Headcount held steady at 336,300, with voluntary attrition ticking down to 15.8%.
Industry recognition and global expansion underpin confidence
Cognizant’s AI and automation prowess earned it spots on Fortune’s “America’s Most Innovative Companies 2025” list and Ethisphere’s “2025 World’s Most Ethical Companies” ranking. It also launched a 14-acre immersive learning center in Chennai to train 100,000 annually, addressing tech talent gaps.
The company expanded geographically, opening a Belcan aerospace office in Toulouse and partnering with Saudi Arabia’s Upsource for GenAI solutions.
Analysts reinforced the company’s leadership in more than 10 sectors, ranging from pharmacovigilance to IoT, while projecting a yearly revenue growth of 3.5%–6% and margin expansion.
Cognizant recently ranked #7 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
