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Cognizant Lifts 2025 Outlook After Q3 Revenue Beat as One-Time Tax Charge Cuts Profit

AI-led wins are driving momentum.

Overview

  • Third-quarter revenue rose 7.3% year over year to $5.415 billion, topping guidance and Wall Street estimates.
  • Cognizant raised its full-year adjusted EPS outlook to $5.22–$5.26 and lifted the lower end of its revenue forecast to $21.05 billion.
  • The company guided fourth-quarter revenue to $5.27–$5.33 billion.
  • Reported net income fell 53% to $274 million due to a non-cash $390 million tax expense tied to the OBBBA repeal’s impact on deferred tax assets.
  • Bookings declined 5% but included six deals of at least $100 million in total value; Cognizant repurchased $450 million of stock, declared a $0.31 dividend, and flagged a proposed $100,000 H‑1B visa fee as an external risk it is working to mitigate.