Q3 2025: Cognizant's Revenue Up 6.5% This is our fifth consecutive quarter of year-over-year organic revenue growth, says Ravi Kumar S, CEO, Cognizant
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Cognizant Technology Solutions, US-based IT services, recorded a third quarter revenue (Q3 2025) that grew 6.5 per cent year-over-year (YoY) and 2.8 per cent sequentially in constant currency. In the third quarter of 2025, revenue from the recently completed acquisition of Belcan contributed approximately 2.5 percentage points to year-over-year revenue growth.
"This is our fifth consecutive quarter of year-over-year organic revenue growth and our strongest sequential organic growth since 2022," said Ravi Kumar S, CEO, Cognizant.
The products and resources segment reported the highest revenue growth at 12.6 per cent YoY, followed by financial services, health science, and media, communication & technology.
Large deal momentum was one of the key pillars of growth. The company signed six large deals in the quarter, bringing the year-to-date total to 16 with 40 per cent growth in large deal TCV, compared to the same period last year.
The quarter revenue was well above the company's guidance range with broad-based growth across segments and geographies, including noteworthy performance in North America. North America's revenue stood at $4,028 million, a 7.8 per cent YoY growth, follwed by Europe, a 7.8 per cent growth at $1,042 milion, and rest of the world at $345 million.
The CEO believes the three vector AI builder strategy is gaining traction, "We expect our early investments in AI-led platforms and IP on the edge will help power growth in the years ahead," Kumar added.
The fourth quarter revenue is expected to be $5.27 - $5.33 billion, growth of 3.8 per cent to 4.8 per cent, or 2.5 per cent to 3.5 per cent in constant currency.
Full-year 2025 revenue is expected to be $21.05 to $21.10 billion, growth of 6.6 per cent to 6.9 per cent, or 6.0 to 6.3 per cent in constant currency.
Cognizant reported a headcount of 349,800 as of September 30, 2025, an increase by 9,700 on a year-on-year basis and 6,000 on sequential basis.
"Strong execution and cost discipline drove 70 basis points of year-over-year, adjusted operating margin expansion, robust cash flow and year-to-date adjusted EPS growth of 11 per cent," said Jatin Dalal, CFO.
"We have increased our full-year revenue guidance to 6.0 to 6.3 per cent year-over-year constant currency growth, above our prior range and deployed $1 billion through share repurchases through Q3, underscoring our confidence in our growth strategy," the CFO added.
