Cognizant Q4 profit rises 18%, revenue tops guidance, Nomura highlights deal wins

Cognizant reported a better-than-expected performance for the fourth quarter, with revenue beating its guidance and profit rising sharply. However, the company said demand conditions remain cautious amid global macro uncertainty.

Q4 results

Revenue for the quarter came in at $5.333 billion, higher than the guided $5.082 billion. This marked a 5 per cent year-on-year increase.

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Profit after tax rose 18 per cent to $648 million, compared with $546 million in the same period last year. Improved execution and margin recovery supported earnings.

Guidance and outlook

For the next quarter, Cognizant guided revenue in the range of $5.36 billion to $5.44 billion.

For 2026, the company expects constant currency revenue growth of 4 per cent to 6.5 per cent. Management said clients remain cautious in their spending decisions due to ongoing macro and geopolitical uncertainties.

Brokerage outlook

Nomura said Cognizant delivered a clear beat in the fourth quarter of FY25. The brokerage highlighted strong deal wins, which should aid growth in FY26.

Nomura added that the company is firmly establishing itself in the winner’s circle among large IT services firms. It also noted that margin recovery under the NextGen initiative continues, while the FY26 guidance appears reasonable in the current macro environment.