DBT Bureau
Bengaluru, 6 February 2025
US-headquartered IT services firm Cognizant sees better revenue growth prospects in 2025 as compared to last year on the back of improving demand environment.
The company, which reported its fourth quarter results on Wednesday, has projected its revenue to grow in the range of 3.5% to 6% in constant currency terms during 2025. The company posted a revenue growth of 1.9% in constant currency in 2024.
Cognizant, which follows January-December financial year cycle, also posted better than expected fourth quarter results. The company’s net income grew 2.1% to $558 million, compared to $546 million posted a year ago.
The IT firm’s revenue during October-December period came in at $5.1 billion, up 6.7% year-on-year. The company managed to meet the higher end its guidance during the quarter.
“I am deeply grateful to our employees for their commitment to our strategic priorities and rigorous execution, which drove fourth quarter revenue growth to the high end of our guidance range. 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, Chief Executive Officer of Cognizant.
The company said its bookings increased 3.1% YoY to $27.1 billion on a trailing twelve-month basis. During the quarter, the company signed 10 deals each with a total contract value (TCV) of $100 million or more.
For 2024, revenue grew 1.9% YoY in constant currency (CC) terms to $19.7 billion, which included around 200 basis points of growth from subsidiaries Thirdera and Belcan.
“We expect that our improved cost structure, achieved through the successful completion of our NextGen program, will help us sustain our pace of strategic investments in support of profitable growth. Our initial 2025 guidance calls for 3.5% to 6.0% constant currency revenue growth and 20 to 40 basis points of full-year Adjusted Operating Margin expansion,” Jatin Dalal, Chief Financial Officer of Cognizant said.
However, headcount of Cognizant dropped by 3,300 to 336,800 by the end of the December quarter. Notably, the company also reported a decrease of 6,500 in its headcount during the third quarter.
