Cognizant to Roll Out Salary Hikes for 80% of Eligible Employees from November 1, 2025

IT services giant Cognizant has confirmed that salary increments will be rolled out for almost 80% of eligible employees starting November 1, 2025, according to a report by a news agency.

Cognizant Confirms Salary Increases for Majority of Workforce

The decision follows the company’s earlier announcement during its Q2 2025 earnings call that the majority of employees would receive merit-based salary hikes in the second half of the year.

Who Will Receive the Hike?

• The increments will apply to employees up to and including the Senior Associate level.

• The exact percentage of increase will vary based on performance ratings and geographical location.

• In India, high performers can expect high single-digit hikes, while others will receive smaller adjustments.

Reasons Behind the Delay

Cognizant traditionally implements salary hikes from August 1, but this year’s cycle was postponed due to global economic headwinds. Among the challenges cited were U.S. tariffs, which had an impact on client budgets.

Bonuses Already Rewarded in 2025

Earlier in the year, most associates at Cognizant received their highest bonuses in three years, reflecting the company’s commitment to rewarding strong performance despite market uncertainties.

Cognizant Strong Financial Performance in Q2 2025

The decision to implement salary hikes comes after a robust second-quarter performance:

• Revenue: $5.25 billion, up 8.1% year-on-year

• Net income: $645 million, up 14%

• Bookings: Up 18%, including two large deals worth over $1 billion each

• Revenue growth forecast for 2025: Raised to 4–6% from the earlier 3.5–6%

• Operating margin guidance: Maintained at 15.5–15.7%

Cognizant Workforce Growth and Reduced Attrition

• Headcount: Increased by 7,500 employees in Q2, taking the total to 343,800.

• Attrition: Dropped to 15.2%, reflecting improved employee retention.

• Hiring growth was driven largely by India, with a significant focus on fresh talent.

Cognizant AI Upskilling Initiative

In addition to salary hikes, Cognizant announced plans to upskill employees in artificial intelligence through a new learning facility in Chennai. This aligns with the company’s strategy to prepare its workforce for the next generation of technology solutions.

About Cognizant company

Cognizant is an American multinational information technology (IT) services and consulting company. Originally founded in Chennai, India, in 1994, it is now headquartered in Teaneck, New Jersey. The company provides a wide range of services, including digital transformation, cloud solutions, and business process outsourcing, to clients across various industries.

Cognizant History and Overview

Cognizant was established as an in-house technology unit for Dun & Bradstreet, named Dun & Bradstreet Satyam Software (DBSS). After a series of corporate restructurings, it was spun off as an independent company and had its initial public offering in 1998. The company rapidly expanded its portfolio from application development into a broader set of services, growing into one of the world's largest professional services companies.

As of the second quarter of 2025, Cognizant has a global workforce of approximately 343,800 employees. Its revenue for the second quarter of 2025 was $5.25 billion, a year-over-year increase of over 8%. The company's focus on digital services, including AI, cloud, and IoT, has been a key driver of its recent growth.

Key Services and Offerings of Cognizant

Cognizant's services are designed to help clients modernize their businesses for the digital era. Its offerings are organized across several key areas:

• Digital Business & Technology: This includes a focus on modernizing core enterprise platforms, digital engineering, and cloud services.

• Data and AI: The company is making significant investments in artificial intelligence, with its Neuro® AI platform and new AI training services aimed at helping enterprises build and scale AI models.

• Consulting and Business Process Services: Cognizant provides strategic consulting to help clients with digital transformation and also offers business process outsourcing (BPO) solutions.

• Industry-Specific Solutions: The company has deep expertise in a wide range of industries, including healthcare, banking, retail, and manufacturing, allowing it to provide tailored solutions that address specific industry challenges.

Cognizant Recent Developments

In 2025, Cognizant has made several strategic moves to strengthen its position in the market:

• AI Focus: The company has launched new AI-related products and services, such as the TriZetto AI Gateway to power AI in healthcare and an AI training data service to accelerate model development.

• Partnerships and Acquisitions: Cognizant has formed key partnerships to scale AI-driven transformations and recently completed the acquisition of Belcan, an engineering research and development firm, to expand its capabilities in aerospace and defense.