Cognizant reported a strong set of financial results for the fourth quarter and full year ended December 31, 2025, beating its own guidance across revenue, margins and earnings, driven by improved deal momentum and increased focus on AI-led services. The company recorded fourth-quarter revenue of $5.3 billion, marking a 4.9 per cent year-on-year increase, while full-year revenue rose 7 per cent to $21.1 billion. Operating margin for the year improved to 16.1 per cent, up 140 basis points from the previous year. Adjusted earnings per share increased 11 per cent year-on-year to $5.28, despite a one-time non-cash tax charge impacting GAAP earnings.
Cognizant’s trailing twelve-month bookings stood at $28.4 billion, up 5 per cent, supported by 28 large deals signed during 2025, including two mega deals in the fourth quarter alone. The company also announced plans to return $1.6 billion to shareholders in 2026 through dividends and share buybacks, while raising its quarterly dividend by 6.5 per cent. For 2026, Cognizant guided for constant-currency revenue growth of 4 to 6.5 per cent and further margin expansion.
Cognizant’s strong global performance is encouraging for the Kolkata IT and services market, where delivery centres continue to support global banking, healthcare and retail clients. Stable deal flow and sustained AI investments are expected to help maintain employment levels and support gradual growth in the region despite broader industry caution.
