Cognizant Q2 Results: Firm reports 14% jump in profit, beats estimates; annual revenue growth forecast now at 4-6%

Cognizant on Thursday, July 31, reported a net income of $645 million for the first quarter of the current fiscal year (Q1 FY26), up 14% year-over-year (YoY), beating market expectations. The IT services firm raised the lower end of its full-year revenue growth forecast, which now stands between 4% and 6%. 

The Nasdaq-listed firm’s revenue for the June quarter was at $5.25 billion, up 8.1% YoY (7.2% in constant currency terms), as per the company’s earnings release. Cognizant follows the January-December fiscal year cycle, making this the second quarter for the company. 

With winning two mega deals and outperforming in the first half of the year, along with new spends unlocked on the back of agentic solutions and AI, the company managed to raise the lower end of the guidance band, its top management 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," Cognizant CEO Ravi Kumar S said.

The revenue for the third quarter (July-September) is expected to be in the range of $5.27-5.35 billion with a growth of 4.6% to 6.1% (or 3.5-5% in constant currency terms). Further, its revenue for the full year 2025 is seen between $20.7-21.1 billion with a growth rate falling between 4.7% and 6.7% (4-6% in constant currency terms). 

Jatin Dalal, Chief Financial Officer (CFO) of the company, said the increased revenue guidance midpoint and the reaffirmed adjusted operating margin outlook reflect strong execution and momentum year-to-date.

"We now expect to return approximately $2 billion to shareholders this year, reinforcing our commitment to returning excess capital and confidence in our long-term strategy," he added.

Cognizant’s bookings in the reporting quarter included six major deals with a total contract value of $100 million or above, and two of these deals had a total contract value of over $1 billion each.  

The IT major’s total headcount was 343,800 at the end of the second quarter (as of June 30, 2025), up 7,500 from both Q1 2025 and Q1 2024.

"On a trailing-twelve-months basis, Voluntary Attrition - Tech Services was 15.2% in the second quarter of 2025, as compared to 15.8% and 13.6% in the first quarter of 2025 and second quarter of 2024, respectively," the release said.