Cognizant, one of the world’s leading professional services companies, yesterday announced its first quarter 2025 financial results.
Headcounts
Cognizant, one of the world’s leading professional services firms, reported a total headcount of 336,300 as of March 31, 2025, marking a reduction of 500 employees compared to the previous quarter.
This follows a trend observed in Q4 FY24, when headcount dropped to 336,800, down 10,700 year-over-year and 3,300 sequentially from Q3 FY24’s 340,100.
The company appears to be carefully managing its workforce amidst an evolving business environment, with a focus on aligning talent to high-demand service areas.
Attrition
Cognizant’s Voluntary attrition on a trailing twelve-month basis stood at 15.8% in Q1 FY25. This is slightly down from 15.9% in Q4 FY24 but remains higher than the 13.1% reported in Q1 FY24.
While attrition has moderated slightly, the figure indicates a continued competitive market for tech talent.
Cognizant has made ongoing efforts to improve employee engagement, internal career mobility, and retention as it looks to stabilize its delivery and talent base.
Financial Results
Cognizant beat Wall Street estimates in the first quarter of FY25, reporting revenue of $5.12 billion, just above the analyst consensus of $5.11 billion.
Adjusted earnings per share came in at $1.23, exceeding the estimate of $1.20. The company has raised its full-year revenue guidance to a range of $20.5 billion to $21.0 billion, up from a prior midpoint range of $20.30 billion to $20.80 billion.
Analysts had projected $20.68 billion for 2025.
CEO Ravi Kumar S. attributed the positive outlook to growing demand for AI-powered IT services, including generative AI solutions, as enterprises accelerate cloud adoption and automation.
For Q2 FY25, Cognizant expects revenue between $5.14 billion and $5.21 billion, with the midpoint of $5.175 billion surpassing the LSEG average estimate of $5.12 billion.
The company believes its differentiated platform and AI capabilities are well-positioned to help clients navigate uncertainty while driving long-term transformation.
Takeaways
- Revenue: $5.1 billion in Q1 FY25, up 7.5% year-over-year (or 8.2% in constant currency), exceeding the high end of guidance.
- Operating Margin: Reported margin at 16.7%, up 210 basis points YoY; Adjusted Operating Margin at 15.5%, a 40 basis point YoY increase.
- Headcount: Total workforce stood at 336,300 as of March 31, 2025.
- Attrition: Voluntary attrition (Tech Services, trailing twelve months) at 15.8% in Q1 FY25.
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