Microsoft Chairperson and CEO Satya Nadella addressing an audience of developers and AI experts as part of his AI India tour, at Whitefield in Bengaluru, on December 11, 2025.

U.S. based IT major Cognizant, which has a substantial number of employees in India, on Wednesday (October 29, 2025) reported a 53% drop in net income for Q3 2025 to $274 million, hit by a one-time, non-cash income tax expense of $390 million.

Cognizant – which follows a January-December financial year– had posted a net income of $582 million in Q3 2024.

The company’s revenues, however, rose 7.3% year-over-year to $5,415 million for the quarter ended September 2025, driven by gains coming in from its investments into AI, and it has raised the lower end of the revenue growth forecast for the full fiscal year.

Cognizant had earned a revenue of $5,044 million in the year-ago period.

The Nasdaq-listed IT services firm raised the lower end of its full-year revenue growth forecast, pegging it at $21.05-21.10 billion, as against $20.7-21.1 billion earlier.

For the fourth quarter, Cognizant expects revenues to be in the range of $5.27-5.33 billion.

Cognizant CEO Ravi Kumar S said Q3 2025 marks the company’s fifth consecutive quarter of year-over-year organic revenue growth, and its strongest sequential organic growth since 2022.

Kumar informed that Cognizant, over the last 2.5 years, has been investing in transitioning from a traditional system integrator to an AI builder.

“AI builder is a company which is looking at enterprise journeys on AI productivity, personalising AI and actually identifying an enterprise…We invested in capability…intellectual property platforms…that is starting to come together for all the numbers,” he said, highlighting gains that accrued to the company from the strategy.

Revenue per person, trailing for 12 months, has gone up by 8%, while the margin per person is up by 10%.

“…[this] is indicative of the fact that we are starting to see the embrace of AI in enterprise, and we are starting to win market share. With this performance, we are literally at the top of the winner’s circle amongst our peer group, and are very, very excited about sustaining that momentum for the future,” he asserted.

Cognizant’s three-vector AI builder strategy is gaining ground, and early investments in AI-led platforms and IP on the edge will help power growth in the years ahead, Kumar noted.

As much as 30% of the company’s code is written by machines now, translating into greater productivity.

Elaborating on the one-time hit, the company in its results statement said that in July 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the United States, which, among others, repealed the requirement to capitalise US research and experimental costs.

“As a result, we do not believe it is more likely than not that we will realise our deferred tax asset of $390 million related to R&E costs capitalised outside the U.S. These amounts would have otherwise been available to offset certain future U.S. taxes on our non-U.S. earnings, which, as a result of this repeal, we no longer project to be applicable to us,” it said, explaining the one-time, non-cash income tax expense of $390 million recorded in Q3.

Cognizant’s third-quarter bookings declined 5% year-over-year, but included six large deals(those with a total contract value of $100 million or greater).

The company added 6,000 employees, mostly freshers, during the July-September period, bringing its total headcount to 349,800 at the end of the quarter.

Cognizant management said the firm is on track to hire 15,000-20,000 freshers this year.

Jatin Dalal, Chief Financial Officer, said the company observed broad-based growth across segments and geographies, including noteworthy performance in North America.

“We have increased our full-year revenue guidance to 6.0-6.3% year-over-year constant currency growth, above our prior range and deployed $1 billion through share repurchases through Q3, underscoring our confidence in our growth strategy,” he said.

He added that the company has implemented hikes for 80% of its employees, effective November 1.

Cognizant’s top management said the company has significantly reduced its dependency on H1B and increased local hiring, alongside stepping up investments in automation, and does not see any material impact of the increased H1B fees on its finances and operations.

The company repurchased 6.3 million shares for $450 million during the third quarter under its share repurchase program. As of September 30, 2025, there was $2.2 billion remaining under the share repurchase authorisation. In October 2025, the company declared a quarterly cash dividend of $0.31 per share for shareholders of record on November 18, 2025. This dividend will be payable on November 26, 2025.

Published – October 29, 2025 10:31 pm IST

Tata Consultancy Services (TCS), Cognizant and eight other major corporations have been questioned by U.S. Senators for filing thousands of H-1B skilled labour visa petitions after conducting “mass layoffs” of American employees.

Senate Judiciary Committee Chairman Charles Grassley and ranking member Richard Durbin have also questioned Amazon, Apple, Deloitte, Google, JPMorgan Chase, Meta, Microsoft, and Walmart, asking them for details on their hiring and recruitment practices as well as any variation in salary and benefits between H-1B visa holders and American employees.

The Senators said their “inquiry” comes at a time when the unemployment rate in America’s tech sector is “well above” the overall jobless rate. According to the Federal Reserve, recent American graduates with STEM degrees now face higher unemployment rates than the general population, they stated.

It is pertinent to mention that Senator Grassley and Senator Durbin have been vocal critics of the H-1B visa programme and have consistently contended that these visas are being abused by many to replace U.S. workers with cheaper labour from overseas.

In fact, just a few days after their missive to the ten companies, the Senators said they are reintroducing bipartisan legislation to “reform and close loopholes” in the H-1B and L-1 visa programs.

The H-1B and L-1 Visa Reform Act targets fraud and abuse in U.S. immigration system, provides protection for American workers and visa holders and enhances transparency in the foreign worker recruitment process, the two argued.

“In evaluating the high unemployment rate for American tech workers, we cannot ignore the massive, ongoing layoffs ordered by you and your peers in Big Tech C-suites over the past few years…At the same time you have been laying off your employees, you have been filing H-1B visa petitions for (thousands of) foreign workers,” the Senators wrote in letters to 10 major employers in the U.S. on September 25, 2025.

They added: “With all of the homegrown American talent relegated to the sidelines, we find it hard to believe that (you) cannot find qualified American tech workers to fill these positions.”

On TCS, the statement noted that the company recently announced plans to lay off over 12,000 employees, including American staff.

“In fiscal year 2025, TCS applied for and received approval to hire 5,505 foreign H1-1B employees. TCS is currently under investigation by the Equal Employment Opportunity Commission for allegedly firing older American employees in favour of newly hired foreign H-1B visa holders,” it said.

It further said Cognizant Technology Solutions laid off thousands of workers, including employees in the US.

“In fiscal year 2025, Cognizant applied for and received approval to hire 2,493 foreign H-1B employees. In 2024, a federal jury concluded Cognizant favoured South Asian H1-B visa holders over American employees, which warranted punitive damages,” it added.

E-mails sent to TCS and Cognizant for comments by PTI did not elicit a response.

The statement by Grassley and Durbin noted that Amazon laid off tens-of-thousands of employees in recent years, blaming the adoption of generative AI tools. In fiscal year 2025, Amazon applied for and received approval to hire 10,044 foreign H-1B employees.

Google, it said, laid off tens-of-thousands of employees in recent years, including hundreds of workers in its platform and device unit, and 35% of its small team managers “despite enjoying records profits”.

In fiscal year 2025, Google applied for and received approval to hire 4,181 foreign H-1B employees, the statement observed.

According to it, Meta laid off a quarter of its workforce between 2022 and 2023 and labelled it a “year of efficiency”.

“In 2025, Meta laid off 3,600 employees, overshooting its stated goal of laying off another five per cent of its workforce. In fiscal year 2025, Meta applied for and received approval to hire 5,123 foreign H-1B employees,” it said.

Microsoft applied for and received approval to hire 5,189 foreign H-1B employees in fiscal year 2025, as per the statement.

Microsoft laid off 16,000 employees this year alone, despite record revenue and profits, it said adding amid criticism for mass-layoffs, Microsoft characterised its actions as an “enigma of success”.

Published – October 03, 2025 10:49 pm IST

Cognizant has accused Infosys of illegally accessing data from TriZetto’s software and using it to develop and market a competing product. File
| Photo Credit: Jothi Ramalingam B

IT major Cognizant’s subsidiary TriZetto has slapped a lawsuit on Infosys in a U.S. federal court, accusing the Bengaluru-headquartered company of stealing trade secrets and information related to healthcare insurance software.

Infosys, in a statement, denied all allegations. The company asserted it is aware of the lawsuit and will defend its position in the court.

Cognizant in a lawsuit filed in Texas federal court has accused Infosys of illegally accessing data from TriZetto’s software – Facets and QNXT – and using the same to develop and market a competing product.

Cognizant offerings include TriZetto’s Facets and QNXT, which healthcare insurance firms use to automate tasks. Teaneck, New Jersey-based Cognizant has the bulk of its employees in India.

Cognizant has reportedly alleged that Infosys misused TriZetto’s software to create “Test Cases for Facets,” which repackaged its data into an Infosys product.

Further, it has reportedly alleged that Infosys created software to extract data from QNXT, that contained confidential TriZetto information.

It is interesting to note that just this week, Cognizant named former Infosys executive Rajesh Varrier as global head of operations and India Chairman and Managing Director, following the resignation of Rajesh Nambiar, who is set to take over as Nasscom president.

Moreover, Cognizant’s Chief Executive Officer Ravi Kumar S. is also an Infosys veteran, whose 20-year career at the Bengaluru-based firm saw him holding various leadership roles, including as President from January 2016 through October 2022.

Rajesh Nambiar stepped down from Cognizant as its India Chairman and Managing Director on August 21. He has been appointed as the president-designate of the Nasscom.
| Photo Credit: S. Siva Saravanan

Cognizant on Wednesday (August 21, 2024) announced the appointment of Rajesh Varrier as Global Head of Operations, effective September 2, 2024.

Additionally, he will be appointed as Chairman & Managing Director, India, assuming the role October 1, 2024, as Rajesh Nambiar leaves Cognizant to become president of Nasscom.

Mr. Varrier will be an Executive Vice President of Cognizant, reporting to Ravi Kumar S., Cognizant’s Chief Executive Officer. Mr. Varrier will be based in Bangalore.

According to a Cognizant statement, as Global Head of Operations and Chairman & Managing Director, India, Mr. Varrier’s responsibilities will include operations, Delivery Excellence, workforce planning, India Leadership Council, expansion in India and other key responsibilities. He would also provide regional leadership for Cognizant’s India-based employees with a strong emphasis on driving company transformation programs, and representing the company as it executes its growth plan across India.

Cognizant:

Facing social media backlash over the Rs 2.52 lakh annual salary offer for freshers, IT giant Cognizant on Sunday said it offers Rs 4-12 lakh salary to fresh engineering graduates, and the salary being quoted on social media is for non-engineering undergraduate degree holders.

The firm also faced social media ridicule for doling out annual salary hikes of as low as 1 per cent, but what is being quoted is the lower band of the 1-5 per cent annual increments that the firm has dished out based on individual performance.

Cognizant annually hires fresh engineers and non-engineering/IT graduates for varied roles.

With the two recruitments running almost parallel, hiring for three-year non-engineering/information technology undergraduate degree holders picked up and was widely shared as Cognizant’s salary package for freshers.

“Our recent job posting for talent from non-engineering backgrounds, with a 3-year undergraduate degree has been grossly misrepresented. This job posting, with compensation of Rs 2.52 lakhs annually, was only for candidates with a 3-year undergraduate degree and not for engineering graduates.

“Our annual compensation for fresh engineering graduates ranges from Rs 4 lakhs to Rs 12 lakhs annually, depending on the category of hiring, skill set, and advanced industry accredited certifications,” said Surya Gummadi, EVP and President, Cognizant Americas.

Cognizant hires non-engineering undergraduate degree holders for administrative and other roles and invests substantial time and money in upgrading their skills and IT training, after which they get absorbed in various roles.

“The compensation we offer for engineering graduates is highly competitive within the IT services peer group,” he said.

Cognizant’s salary package for engineering graduates matches the best in the industry, and at some levels, it is even higher than peers.

“We have been recruiting and upskilling freshers from engineering institutions as well as colleges offering degrees in science, arts, and commerce. Today, as AI increasingly powers modern businesses, we are creating new pathways for talent to thrive in India’s technology industry,” Gummadi said.

Gummadi — who joined Cognizant as a fresher two-and-half-decades back and rose through ranks to now head geography, which forms three-fourths of Cognizant’s revenues — said the firm has a robust training programme that has benefited freshers across the board.

“When we hire for entry-level roles, we invest approximately Rs 2 to 3 lakhs per associate in the initial years to train, mentor and upskill in advanced technologies. This is for both engineering and non-engineering associates. Hundreds of our associates, who joined us with a 3-year undergraduate degree, today hold key positions from manager to assistant vice president across the company,” he said.

On the annual increments, Cognizant said it works diligently to be competitive in its compensation strategy.

“The merit increases for this cycle are tied to both individual performance and macro industry dynamics. This year, we are one of the few IT companies in India that have delivered increments and bonuses for employees. This recent pay hike is the 4th that most Cognizant’s associates have received in the past 3 years. Moreover, these hikes are just one component of the comprehensive total rewards,” it said.

Gummadi said Cognizant is a people-first company.

“India is the heart of Cognizant and its largest talent hub – with over 70 per cent of its over 3,36,000 global workforce – based in major metros and Tier-2 cities, across the country,” he added.

“To bring our offices closer to where our associates live, we have recently opened new centres in Bhubaneshwar and Indore and expanded operations in Hyderabad. Everything we do hinges on the quality, dedication and scale of our talent.” Over the past decades, the firm continued to unlock the full potential of the rich talent pool in India.

“We continuously invest in training and upskilling our associates in advanced digital technologies, sponsor higher education and leadership development programmes with top institutions so that our people are empowered to be at the forefront of innovation, learn the latest technologies, work with global clients and accelerate their career growth,” he noted.

He said Cognizant has been recruiting and upskilling freshers from engineering institutions as well as colleges offering degrees in science, arts, and commerce.

“Today, as AI increasingly powers modern businesses, we are creating new pathways for talent to thrive in India’s technology industry.” 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)