Cognizant reported a 21% year-over-year enhance in web revenue for the primary quarter ended March 31, 2025, reaching $663 million, up from $546 million in the identical quarter final 12 months.
The corporate’s income rose 7.5% to $5.1 billion through the quarter YoY, however stayed flat quarter on quarter, assembly the expectations set over the past quarter.
CEO S Ravi Kumar attributed the efficiency to rising demand for AI-driven IT providers. “We began the 12 months on a powerful notice, delivering income and adjusted working margin forward of our expectations, reflecting our steadfast concentrate on the execution of our technique over the past a number of years,” mentioned Kumar in an organization launch.
In the course of the earnings name, Kumar mentioned that the corporate is actively scaling its work in generative AI, reporting roughly 1,400 early-stage GenAI engagements, up from 1,200 within the earlier quarter. Cognizant has developed over 20 agentic options utilizing Google’s LLMs, significantly targeted on healthcare, addressing points corresponding to prior authorizations, fraud, and member expertise.
Kumar identified that “AI-written code elevated to greater than 20% for us,” calling it a pioneering second for developer productiveness.
Cognizant can also be constructing out a complicated framework for industrialising AI, working with hyperscalers like Microsoft, AWS, and Google, in addition to deepening its collaboration with NVIDIA to develop enterprise AI brokers, industry-specific giant language fashions, and AI infrastructure.
A notable inside breakthrough features a patent-pending methodology for managing LLM hallucinations by setting uncertainty thresholds, permitting fallback to rule-based techniques when confidence is low.
On the GCC entrance, Cognizant is increasing aggressively, most not too long ago asserting a brand new GCC with Residents Monetary in Hyderabad. This centre will concentrate on enhancing enterprise expertise, knowledge, and analytics for the shopper, utilizing Cognizant’s Neuro and Flowsource AI platforms.
Kumar sees GCCs as a strategic development lever, including, “We’re enterprise extra engagements to assist shoppers on the GCC journey, equipping them with strategic AI tooling and platforms wanted to drive operational power.” Earlier, Cognizant in its 2024 annual report identified that there’s potential menace from GCC in the case of buying expertise.
Whereas verticals like well being sciences, monetary providers, and merchandise and assets contributed to the income increase, the Communications, Media, and Know-how segments skilled a decline. The quarter additionally included a $62 million achieve from the sale of an workplace advanced in India.
Bookings on a trailing twelve-month foundation elevated 3% year-over-year to $26.7 billion, representing a book-to-bill ratio of roughly 1.3X. Nevertheless, bookings within the first quarter alone declined 7% from the earlier 12 months. The quarter included 4 giant offers, every valued at $100 million or extra.
Worker metrics confirmed that voluntary attrition within the tech providers phase stood at 15.8% on a trailing twelve-month foundation, in comparison with 15.9% in This autumn 2024 and 13.1% in Q1 2024. Complete headcount on the finish of March 2025 was 336,300, marking a discount of 500 workers from the prior quarter.
Wanting forward, Cognizant projected second quarter income to vary between $5.14 billion and $5.21 billion, and full-year 2025 income between $20.5 billion and $21.0 billion.
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