Cognizant Forecasts Annual Revenue Growth of 3.5-6% in 2025 During the December quarter, Cognizant signed 10 large deals with a total contract value of USD 100 million or higher
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Nasdaq-listed IT services major Cognizant Technology Solutions has forecast an annual revenue growth of 3.5 per cent to 6 per cent in constant currency for 2025 as the management believes the company is transitioning from its stabilization phase to a growth phase.
The net profit for the fourth quarter ended December declined 2 per cent to USD 546 million from USD 558 million in the year ago period. Its revenue increased 6.7 per cent in constant currency to USD 5.1 billion, at the high end of its own guidance range.
The company follows a January to December accounting year.
In comparison, for the December quarter, Tata Consultancy Services' (TCS's) dollar revenue grew 4.5 per cent in constant currency from a year earlier to USD 7.5 billion, while that of Infosys grew 6.1 per cent in constant currency to USD 4.94 billion.
In a bid to strengthen its engineering services portfolio, last year Cognizant acquired Belcan for USD 1.3-billion. It also completed the acquisition of ServiceNow partner Thirdera for USD 430 million in January last year. Both these acquisitions contributed around 200 basis points to its annual revenue growth.
"We exited the year with momentum – closing a record 29 large deals during the year – highlighting the effectiveness of our strategy," said Ravi Kumar S, CEO, Cognizant. "In 2024, we accelerated investments in our AI-led platforms and added new capabilities with the acquisitions of Thirdera and Belcan, further strengthening and diversifying our portfolio. Our focus on client centricity, agility, and innovation is helping clients unlock the next wave of hyper productivity and enterprise-grade generative AI adoption."
Bookings in the fourth quarter increased 11 per cent YoY. On a trailing-twelve-month basis, bookings increased 3 per cent YoY to USD 27.1 billion, which represented a book-to-bill of approximately 1.4 times. During the December quarter, Cognizant signed 10 large deals with a total contract value of USD 100 million or higher.
Cognizant's headcount dropped by 10,900 employees during the December quarter compared to the year-ago period. The total headcount as of year ended December 2024 stood at 336,800. The voluntary attrition rate on a trailing 12-month basis increases to 15.9 per cent in the fourth quarter from 13.8 per cent in the same period last year.
