The IT industry faces a puzzling situation. At the same time, companies report record-breaking profits, and employees continue to request their annual salary increases. Cognizant Technology Solutions is the perfect example of this contradiction, earning massive revenues while keeping compensation on hold.
A Strong Financial Performance Masks Employees’ Concerns
Cognizant has delivered impressive financial results in the second quarter of 2025. The company reported a remarkable net profit, reaching $645 million. This translates to approximately ₹5400 crore in just three months, showcasing the company’s robust business performance.
Revenue numbers tell an equally positive story. Cognizant recorded $5.25 billion in quarterly revenue, representing an 8.1% increase from the previous year. The figures exceeded analyst expectations, providing the company with a strong market position despite global economic uncertainties.
The revenue growth came primarily from large-scale deals in two sectors — health sciences and financial services. These sectors continue to drive demand for Cognizant’s technology services, creating a solid foundation for future growth.
Cognizant Puts Salary Hike On Hold
Despite these encouraging financial metrics, Cognizant’s employees face disappointment regarding their compensation. The company has officially announced the postponement of the salary hike for 2025, citing ongoing macroeconomic uncertainty as the primary reason.
Chief Financial Officer Jatin Dalal confirmed this decision during a recent communication. He stated that no fixed timeline has been established for employee increments. This announcement breaks from Cognizant’s traditional approach of beginning annual salary increases on August 1.
For most Cognizant employees, the wait extends beyond the usual schedule. The company indicates that a salary adjustment may happen later in 2025, but provides no concrete commitment. Some employees might not receive any increment at all this year.
Raised Revenue Guidance
Despite postponing salary hikes, Cognizant displays confidence in its business outlook. The company raised its full-year revenue guidance to 4-6%, up from the previous range of 3.5-6%.
This upward revision signals management’s belief in sustained demand for their services. Large deals continue flowing in, particularly from health sciences and financial service sectors, supporting optimistic revenue projections.
The Balancing Act
The current approach that the company has taken represents a careful balancing act between financial prudence and future preparedness. While employee compensation faces challenges, the company maintains investment in people and technology platforms.
This strategy aims to position Cognizant for long-term success in a volatile market environment. Management believes that cutting down immediate costs while building future capabilities offers the best path forward.
What will happen in the coming months? We are all curious to know whether this strategy succeeds in balancing shareholder expectations with employee satisfaction in an increasingly competitive talent market.
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