Cognizant's Q4 Profit Jumps 18.7% to $648M, Revenue Climbs 5%; Strong AI-Driven Growth

• Cognizant reported an 18.7% increase in net income to $648 million in the December quarter, up from $546 million in the year-ago period.
• Q4 2025 revenue reached $5,333 million, a 4.9% year-on-year increase, driven by strong large deal momentum and a 9% growth in the financial services sector.
• The company signed a $1 billion "mega deal" in Q4, one of five such deals in 2025, and saw a 50% surge in Total Contract Value (TCV) for large deals.
• Cognizant plans to hire 24,000-25,000 freshers in 2026, focusing on a "broader pyramid" strategy and leveraging AI to decouple revenue growth from headcount growth.
• The company expects to return $1.6 billion to shareholders in 2026 through share repurchases and dividends, including $1 billion in share repurchases.