Cognizant beats revenue estimates in Q1, rises 7.5%

US-BASED IT SERVICES firm Cognizant Technology Solutions beat revenue estimates for the first quarter of 2025 on the back of large deal realisations in health sciences and financial services.

- PADMINI DHRUVARAJ

Revenue was $5.1 billion, up 7.5% year-on-year, exceeding the high end of its guidance and analyst estimates of $5.07 billion. Net profit rose 21% to $663 million for the quarter ended March. The operating margin rose 210 basis points y-o-y to 16.7%. The firm follows the calendar year.

"We started the year on a strong note, delivering revenue and adjusted operating margin ahead of our expectations," said chief executive officer Ravi Kumar S. "Recently won large deals more than offset discreetly spending pressures," he said.