Cognizant to roll out pay hikes to 80% of eligible employees after strong Q2 earnings

IT services company Cognizant said on Thursday that about 80% of eligible employees will receive salary increases effective November 1, 2025.

The company, during its second quarter earnings, had said that it plans to award merit-based salary increases for the vast majority of employees during the second half of 2025.

The US-based IT services firm, which had paid its highest bonuses in three years earlier in 2025, said the hikes will apply up to the Senior Associate level.

"These increases will be delivered up to, and including, the Senior Associate levels. The amount of these increases will vary depending on individual performance rating and country," a Cognizant spokesperson said.

In India, consistent top performers will see high single-digit increases.

The announcement came days after Cognizant reported second-quarter revenue of $5.25 billion, up 8.1% year-on-year, beating estimates.

Revenue rose 7.2% in constant currency, above guidance of 5% to 6.5%. Net income climbed 14% to $645 million.

Bookings for the quarter surged 18% year-on-year, including two mega deals worth over $1 billion each.

The company raised its 2025 constant currency revenue growth guidance to 4%-6% from 3.5%-6%, while keeping its adjusted operating margin forecast at 15.5%-15.7%.

Headcount rose by 7,500 in the quarter to 343,800, while attrition fell to 15.2%.

CEO Ravi Kumar S said, “Our second quarter revenue performance exceeded the high end of our guidance range, underscoring the effectiveness of our strategy to build a resilient and durable portfolio that positions us to win in the AI era."

"Headcount grew by 2% sequentially led by the hiring of recent college graduates. We continue prepare our workforce for a AI-led future. We are deepening our talent in emerging technologies…We are setting up a 21-acre learning site in Chennai that is expected to train freshers and experienced hires in advanced AI skills," he added.

For Q3, Cognizant expects revenue of $5.27 billion to $5.35 billion, a growth of 4.6%-6.1% year-on-year.