MNC 500: Cognizant is back in the winner’s circle. Here’s how it got there

IN JANUARY 2023, Cognizant Technology Solutions was a company yearning for stability. The American multinational lagged peers in growth rates, and by mid-2021, the attrition rate was north of 30% — the highest in the IT industry. It was then that Infosys veteran Ravi Kumar S. took over as Cognizant CEO. He was expected to head a company that was facing the consequences of a leader at odds with the company’s culture. What’s more, his was one of the rare industry appointments wherein he got an opportunity to head a company whose total revenue was larger than that of his previous firm.

Cut to 2026. Cognizant, which follows the January-December fiscal calendar, delivered a stellar 6.4% growth in constant currency terms with total revenue of $21.1 billion in 2025. The full-year operating margins rose 140 basis points YoY to 16.1%. In 2026, Cognizant expects its revenue growth to be in the 4.0-6.5% range in constant currency terms. In contrast, among its large peers that have provided annual guidance, HCLTech expects its overall FY26 revenue growth to be in the range of 4.0-4.5% YoY. It expects services to grow much better at 4.75-5.25% YoY. Infosys, on the other hand, has a revenue growth guidance of 3-3.5% in constant currency terms for the current fiscal.