Cognizant Tops TCS & Infosys with 8.1% Revenue Growth, Q2 Profit Up 14%

Cognizant Technology Solutions has emerged as the standout performer among major IT services companies in Q2 2025, ending June 30, delivering superior revenue growth and profitability compared to Indian rivals TCS and Infosys. 

The Nasdaq-listed company's strong performance was driven by mega deals, AI solutions, and solid growth across key verticals, including healthcare and banking.

Cognizant Achieves 8.1% Revenue Growth Against Weak TCS Performance

Cognizant reported revenue of $5.25 billion for Q2 2025, representing an 8.1% year-on-year increase or 7.2% in constant currency terms. This performance significantly outpaced TCS, which saw revenue decline 3.1% on a constant currency basis during the same period. The contrast highlights Cognizant's successful strategy in navigating challenging market conditions while TCS struggled with headwinds.

TCS reported Q2 revenue of ₹64,259 crore with 7.6% year-on-year growth in reported terms but only 5.5% in constant currency. However, this represents TCS's fiscal Q2 ending September 2024, while Cognizant's numbers are for calendar Q2 2025 ending June 30.

Superior Performance Versus Infosys Revenue Growth

Cognizant's 7.2% constant currency revenue growth substantially exceeded Infosys's 3.3% year-on-year growth in constant currency terms. Infosys reported Q2 revenue of ₹40,986 crore with 5% year-on-year growth in reported terms, demonstrating Cognizant's competitive advantage in revenue expansion during the quarter.

While Infosys maintained stable operating margins at 21.1% and showed sequential growth of 3.1% quarter on quarter, Cognizant's overall revenue performance and growth trajectory proved more robust.

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14% Profit Surge Demonstrates Operational Excellence

Cognizant's net income rose 14% year on year to $645 million for Q2 2025, supported by lower restructuring charges, favourable currency movements, and higher other income. The company's operating margin improved to 15.6%, up 100 basis points year on year, while adjusted operating margin increased 40 basis points year on year.

This profit performance compares favourably to TCS, which reported net profit growth of 5% year on year to ₹11,909 crore in its Q2, and Infosys with 5% net profit growth to ₹6,506 crore.

Mega Deals and AI Solutions Drive Growth Momentum

Cognizant secured two mega deals with total contract value exceeding $1 billion each during Q2, contributing to record trailing 12-month bookings of $27.8 billion, up 6% year on year. The company's total Q2 bookings grew 18% year on year, driven by these significant contract wins across various sectors.

CEO Ravi Kumar S emphasised that the quarter's performance exceeded the high end of guidance range, underscoring the effectiveness of the company's strategy to build a resilient portfolio positioned for the AI era.

Raised Full Year Revenue Guidance Reflects Confidence

Based on strong Q2 performance, Cognizant narrowed its full-year 2025 constant currency revenue growth guidance to 4-6%, up from the previous 3.5-6% range. The company expects full-year revenue between $20.7-21.1 billion, representing growth of 4.7-6.7%.

For Q3 2025, Cognizant guided revenue between $5.27-5.35 billion, indicating continued growth momentum of 4.6-6.1% year on year.

Capital Returns and Shareholder Value Enhancement

Cognizant increased its planned shareholder returns to $2.0 billion for 2025 versus $1.7 billion previously, reinforcing management's confidence in long-term strategy. Year to date, the company returned $885 million to shareholders through share repurchases and dividends.

Conclusion

Cognizant's Q2 2025 performance, with 8.1% revenue growth and 14% profit increase to $645 million, clearly outperformed TCS's negative 3.1% constant currency growth and Infosys's 3.3% expansion. The company's success was driven by mega deals exceeding $1 billion each, AI solutions momentum, and operational excellence, prompting raised FY25 guidance to 4-6% growth and increased shareholder returns to $2.0 billion.

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