New Delhi, May 1 (NationPress) The prominent global IT firm Cognizant has revealed a 7% year-on-year (YoY) decrease in bookings for the first quarter of the calendar year (Q1 CY25).

Nevertheless, bookings over the trailing 12 months increased by 3% YoY to reach $26.7 billion, driven by four significant contracts, each exceeding $100 million.

The company reported a revenue figure of $5.1 billion for Q1 2025, marking a 7.5% rise compared to the same quarter last year (Q1 CY24).

CEO Ravi Kumar S stated, “Our portfolio strength and industry expertise are positioning us well amid global uncertainty,” emphasizing that the firm’s AI-driven solutions are aiding businesses in reducing costs and enhancing productivity.

When adjusted for constant currency, revenue saw an increase of 8.2%. The company’s GAAP operating margin improved to 16.7%, a rise of 210 basis points YoY.

This figure was positively affected by a one-time gain of $62 million from the sale of an office property in India. Adjusted for this, the operating margin was at 15.5%, which is 40 basis points higher than Q1 of 2024.

GAAP stands for a set of accounting principles and standards utilized in the U.S. to ensure financial reporting consistency and transparency.

Cognizant’s GAAP earnings per share (EPS) were reported at $1.34, reflecting a 22% increase from the previous year’s quarter, with adjusted EPS at $1.23, indicating a 10% growth.

The company attributes this performance to its disciplined execution, robust operational efficiency, and strategic investments made in recent years.

CFO Jatin Dalal noted that despite external challenges, Cognizant managed to exceed revenue expectations and enhance margins.

“We aim to return $1.7 billion to our shareholders in 2025 via buybacks and dividends,” Dalal added.

As of March 31, Cognizant employed 336,300 individuals and plans to recruit 20,000 new graduates this year to strengthen its capabilities in managed services and AI-driven software development.

In other developments, Cognizant is currently engaged in legal disputes with Indian IT giant Infosys. The conflict escalated last month, with Infosys filing new charges in a U.S. district court in Dallas, Texas.

Infosys has accused Cognizant of misusing its monopoly power in the healthcare software sector through its TriZetto platform to suppress competition.

In response, Cognizant has requested the court to dismiss Infosys’ antitrust counterclaims, asserting that Infosys has not provided substantial evidence to back its accusations of monopolistic behavior.