Information-technology (IT) services major Cognizant has kept its full-year guidance on revenue growth unchanged at 3.5-6 per cent in constant currency even as the industry is becoming cautious about macro conditions because of tariff wars.

Photograph: Chris Helgren/Reuters

The Nasdaq-listed firm has said it is confident on growth because of revival in discretionary expenditure in banking, financial services, and insurance, an artificial intelligence-led transformation among clients, and inorganic growth drivers.

The company, however, has guided for second-quarter revenue growth of 5-6.5 per cent in constant currency, representing a sequential growth rate of minus 1 per cent to 5 per cent.

Cognizant reported its first-quarter (of CY2025) net income at $663 million, an increase of 21.4 per cent from $546 million in the same period a year earlier.

Revenue in the first quarter grew 8.2 per cent in constant currency to $5.1 billion over the same quarter last year.

The company met its revenue guidance of $5.1 billion.

The acquisition of Belcan contributed about 400 basis points to year-on-year revenue growth.

Unlike other Indian IT services companies, Cognizant follows a January-December calendar.

We started the year on a strong note, delivering revenue and adjusted operating margins ahead of our expectations, reflecting our steadfast focus on the execution of our strategy over the last several years, said Ravi Kumar S, chief executive officer.

During the quarter the company won four large deals and one mega deal (a mega deal is in the $500 million range).

Today productivity, cost reduction, and resilience are especially important, and we believe our differentiated artificial intelligence (AI) and platform capabilities are helping clients navigate the near-term uncertainty while embarking on longer-term AI-led transformation.

The company s total contract value (TCV) for the first quarter was down 7 per cent year-on-year (Y-o-Y) but the trailing 12-month TCV came in at $26.7 billion.

Growth for the quarter was driven across verticals and geographies.

Among verticals, health sciences, the largest for Cognizant, grew 11.4 per cent Y-o-Y, financial services 6.5 per cent, and product and resources 13.6 per cent in constant currency.

The United States grew 9.7 per cent in constant currency Y-o-Y, Europe up 3 per cent and the rest of the world 7.1 per cent.

Our first-quarter performance reflects strong operational rigour in a period of elevated uncertainties.

The deal wins reflect across-the-board growth, and the mega deal is a demonstration of our ability of a large-scale technology transformation for our customer,  said Jatin Dalal, chief financial officer.

Dalal added that in 2025,  we expect to return about $1.7 billion to shareholders through buybacks and dividends, while preserving flexibility to invest for growth.

For 2025 the company plans to hire 20,000 freshers. For Q1 of the year the company had a dip of 500 in the headcount, which touched 336,300.

On tariff wars, Kumar said: So far we have not heard anything from our clients.

We do not have much exposure to federal contracts.

Belcan does have some work but it is very small.

Kumar also said Cognizant s journey of being in the  Winner s circle  had begun.

Over the last few quarters and during the investor day, we spoke about our ambition to be in the winner s circle.

What we define as a winner’s circle is we have a peer group of 11 or 12 companies and we want to be in the top quartile growth.

And we want to achieve that by 2027.