Cognizant reported a solid financial performance for the third quarter of 2025, posting revenue of $5.42 billion, up 7.4% year-over-year and 3.2% sequentially, surpassing its earlier guidance. The company’s operating margin improved to 16%, reflecting stronger operational efficiency and disciplined cost management. On the back of sustained momentum, Cognizant raised its full-year revenue growth outlook to 6.0–6.3%, with an adjusted operating margin projected at approximately 15.7%.
CEO Ravi Kumar S emphasized that this marks the company’s fifth consecutive quarter of organic growth, underscoring its renewed strategic focus and execution strength. He noted that the quarter’s success was powered by six large deal wins and a 40% increase in total contract value, driven by the company’s expanding AI-driven services portfolio. According to Kumar, the results validate Cognizant’s AI Builder strategy, which is helping clients accelerate transformation through automation, intelligent workflows, and AI-assisted software development.
Cognizant also showcased its commitment to innovation and developer enablement by hosting its largest-ever Vibe Coding hackathon, which saw 53,000 participants across 40 countries. Alongside this, the company introduced the Enterprise Vibe Coding Blueprint, a new framework designed to scale AI-assisted coding and enhance enterprise productivity across software engineering teams.
Bookings for the quarter climbed 5% year-over-year to $27.5 billion, representing a 1.3x book-to-bill ratio, a sign of robust demand and healthy deal conversion. Meanwhile, attrition fell to 14.5%, its lowest level in several quarters, reflecting improving employee engagement and retention. Headcount expanded to 349,800, as the company continues to invest in digital talent and AI capabilities to meet growing client demand.
Cognizant’s third-quarter results reaffirm its steady recovery trajectory under Kumar’s leadership, marked by consistent organic growth, operational improvement, and a sharper focus on innovation-led services. With an expanding deal pipeline, rising adoption of its AI platforms, and a strengthened delivery ecosystem, the company is well positioned to sustain its growth momentum and deepen its footprint in digital and AI transformation services globally.
