TCS, LTIMindtree, Infosys: IT stocks in the spotlight on Thursday, Feb 5, a day after NIFTY IT tanks 6%; here is why

The NIFTY IT index ended around 6% lower on Wednesday, with heavyweights such as Infosys tumbling over 8%.

However, on Thursday, the stocks are expected to take centre stage on the back of a positive development.

Shares will be in focus as US-based IT major Cognizant, which has a substantial number of employees in India, on Wednesday reported about an 18.7% increase in net income to $648 million in the December quarter.

Cognizant, which follows a January-December financial year, reported a net income of $546 million in the same period last year.

The management attributed the margin strength to AI-driven efficiencies in both delivery and support functions and said the firm expanded its EPS (earnings per share) faster than its revenue.

Cognizant December quarter numbers: Key details

While the company signed 28 large deals, a figure similar to the previous year, the total contract value (TCV) of these deals surged about 50%. Growth was also supported by strategic M&A, for which the company said it has set aside close to a billion dollars that will fructify during the course of 2026.

Giving its guidance for the full year of 2026, Cognizant said it expects revenues of $22.14-22.66 billion, a growth of 4.9%-7.4% (4-6.5% in constant currency).

The company exuded confidence that the foundation built over the last three years positions it well to carry the momentum in the coming years.

"I am deeply grateful to our over 350,000 employees who helped make 2025 a defining year for Cognizant in which we put our AI builder strategy in motion and returned to the 'winner's circle' two years ahead of the target we set at our Investor Day. We have invested in our talent, strengthened our partnership ecosystem, and advanced our AI platforms to help clients scale AI across the enterprise," Cognizant CEO Ravi Kumar S said.

Cognizant to hire about 25,000 freshers in 2026

IT services major Cognizant on Wednesday said it aims to hire about 24,000-25,000 freshers in 2026 as part of its strategy to expand the "bottom of the pyramid" workforce.

The hiring target represents an increase of approximately 20% over its 2025 intake, where the company onboarded close to 20,000 graduates.

During the company's Q4 2025 earnings call, Cognizant CEO Ravi Kumar S said the company is focused on a "broader pyramid" strategy, shifting high-value tech expertise to entry-level employees through the use of Artificial Intelligence (AI).

The CEO noted the non-linearity of revenue and margins and said the company is decoupling revenue growth from headcount growth. For 2025, revenues grew by 6.4% (in constant currency), while the workforce only increased by 4%, resulting in a 5% increase in revenue per person.

"We are hiring more school graduates. In 2025, we hired more school graduates than in 2024, and in 2026, we are planning to hire more school graduates than in 2025. The idea is to hand this expertise on the fingertips of people at the bottom and drive that value down to actually create not only significant non-linearity but also a broader pyramid of early careers in our journey," Kumar said.