Cognizant reported a strong third quarter for 2025, with revenue rising 7.4 percent year-over-year to $5.42 billion, supported by growth in North America and continued momentum in large deals. Sequentially, revenue grew 3.2 percent, marking Cognizant’s fifth consecutive quarter of year-over-year organic revenue growth.
The IT service provider said its financial performance was led by the Health Sciences and Financial Services segments, which contributed 29.6 percent and 29.2 percent of total revenue, respectively. Health Sciences revenue grew 5.9 percent, while Financial Services increased 6.2 percent from the prior year. The Products and Resources segment delivered the strongest growth at 12.6 percent, reflecting robust demand from manufacturing, retail, and logistics clients. Communications, Media, and Technology revenue rose 4.2 percent, showing steady improvement amid a challenging tech services environment.
Cognizant CEO Ravi Kumar S said: “We maintained our large deal momentum, signing six large deals in the quarter, bringing our year-to-date total to 16 with 40 percent growth in large deal TCV year-to-date. Our differentiated capabilities at the intersection of technology and industry are powering consistent growth.”
Segment and Regional Performance
Cognizant’s growth was led by its North American market, which continues to be the largest contributor to revenue. Regionally, North America remained the dominant market, accounting for 74.4 percent of total revenue and growing 7.8 percent, while the United Kingdom saw 4.4 percent increase. Continental Europe posted strong growth of 11.1 percent, and the Rest of World region grew 8.8 percent.
Cognizant’s strength in large-deal execution and traction in AI-driven digital transformation solutions helped sustain broad-based growth across key verticals such as healthcare, financial services, and technology.
The company’s three-vector AI builder strategy — focusing on AI-led platforms, IP on the edge, and intelligent automation — is gaining traction among enterprise clients looking to modernize operations and enhance productivity. Cognizant said it expects these early investments in AI-driven capabilities to fuel sustained growth in the coming years.
Bookings and Large Deal Momentum
Cognizant recorded trailing twelve-month bookings of $27.5 billion, up 5 percent year-over-year, with a book-to-bill ratio of 1.3x. During the third quarter, bookings dipped 5 percent from the prior year, but included six large deals, each exceeding $100 million in total contract value.
This consistent large-deal momentum underscores Cognizant’s positioning as a trusted digital transformation partner for global enterprises.
Workforce and Talent Metrics
Cognizant ended the quarter with 349,800 employees, up by 6,000 from the previous quarter and 9,700 year-over-year. Voluntary attrition in Tech Services dropped to 14.5 percent, an improvement from 15.2 percent in Q2 2025, reflecting higher employee stability and engagement.
Outlook
For the fourth quarter of 2025, Cognizant expects revenue between $5.27 billion and $5.33 billion, representing growth of 3.8 percent to 4.8 percent.
Full-year 2025 revenue is projected in the range of $21.05 billion to $21.10 billion, up 6.6 percent to 6.9 percent year-over-year.
Strategic Focus
Cognizant’s growth strategy remains centered on:
Scaling AI and automation to enhance productivity and value delivery.
Investing in digital platforms that address client needs in cloud, data, and industry modernization.
Expanding large-deal participation and deepening client partnerships across key sectors.
With a disciplined execution approach and a clear AI-driven roadmap, Cognizant continues to position itself as a leading technology services company delivering sustainable, innovation-led growth.
Rajani Baburajan
