Cognizant Q3 Revenue at $5.42 Billion; Large Deal Value Up 40%

Cognizant reported third quarter 2025 revenue of $5.42 billion, a 7.4% year-over-year increase, or 6.5% in constant currency, surpassing the high end of its guidance range. 

Sequentially, revenue rose 3.2%, or 2.8% in constant currency, driven by growth in North America and organic expansion across all segments. The company’s operating margin stood at 16.0%, up 140 basis points from the same period last year. 

The company raised its full-year constant currency guidance to a range of 6.0% to 6.3%, above its previous projection, and now expects an adjusted operating margin of approximately 15.7%, a 40 basis-point improvement from 2024 and at the high end of its prior guidance.

CEO Ravi Kumar S said that third quarter revenue grew 6.5% YoY and 2.8% sequentially in constant currency, representing our fifth consecutive quarter of year-over-year organic revenue growth and our strongest sequential organic growth since 2022. 

“We maintained our large deal momentum, signing six large deals in the quarter, bringing our year-to-date total to 16, with 40% growth in large deal total contract value compared to the same period last year,” he said. 

The company observed that differentiated capabilities at the intersection of technology and industry are driving this performance. Kumar said that the company believes its three-vector AI builder strategy and investments in AI-led platforms and IP on the edge will continue to power growth in the years ahead.

In this quarter, Cognizant held the biggest Vibe Coding hackathon, creating over 30,600 working prototypes with 53,000 participants across 40 countries in ten days. The company also launched the Cognizant Enterprise Vibe Coding Blueprint, a suite to help Global 2000 firms deploy AI-assisted coding securely at scale and drive innovation-led culture change.

CFO Jatin Dalal said that the third quarter revenue was well above the guidance range with broad-based growth across segments and geographies, including noteworthy performance in North America. 

Cognizant’s bookings rose 5% year-over-year to $27.5 billion, representing a book-to-bill ratio of approximately 1.3x, meaning the company booked about $1.30 in new business for every $1 of revenue recognised. 

While this indicates a strong overall deal pipeline and continued growth momentum, bookings for the third quarter itself declined 5% compared to the same period last year. 

The quarter included six large deals, each with a total contract value of $100 million or more, underscoring sustained traction in high-value engagements despite the slight quarterly dip.

On a trailing-twelve months basis, the company said its voluntary attrition (tech services) was 14.5% for the period ended September 30, 2025, as compared to 15.2% and 14.6% for the periods ended June 30, 2025 and September 30, 2024, respectively. 

Total headcount as of September 30, 2025 was 349,800, an increase of 6,000 from June 30, 2025 and 9,700 from September 30, 2024.

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