Cognizant Mulls Listing on Indian Stock Exchanges, Reports Strong Q3 Results

Cognizant Technology Solutions, currently listed on Nasdaq, is evaluating the complex and long-term prospect of listing its shares on Indian stock exchanges. Management has engaged with stakeholders in both India and the U.S. to assess the implications of a potential public offering. Chief Financial Officer Jatin Dalal stated that while no decision has been made, the company is committed to acting in its shareholders' best interest.

In terms of financial performance, Cognizant reported third-quarter 2025 revenues of $5.42 billion, marking a 6.5% growth year-on-year on a constant currency basis. The operating margin stood at 16%, an improvement of 1.4 percentage points from the previous year. For the fourth quarter, the company anticipates revenues to be between $5.27 billion and $5.33 billion, reflecting a constant currency growth of 2.5% to 3.5%.

The company has also revised its full-year revenue growth guidance upwards to a range of 6% to 6.3% in constant currency. This optimism is fueled by securing significant deals, including 16 large contracts with a Total Contract Value (TCV) of $100 million or more year-to-date, and a strong focus on converting value from Artificial Intelligence (AI) engagements. CEO Ravi Kumar Singisetti noted a comeback in discretionary spending for smaller deals, largely driven by AI innovation, and expressed confidence that infrastructure spending will translate into increased services demand.

Cognizant also indicated that recent changes in U.S. visa policies are not expected to materially impact its operations or finances, as the company has reduced its reliance on H-1B visas by increasing local hiring and nearshore capacities.

Impact This news could significantly boost investor confidence in the Indian IT sector, particularly if Cognizant proceeds with a listing, which would bring another major global IT player to Indian bourses. The strong earnings and raised guidance also signal resilience and growth potential within the sector. The potential listing could increase market liquidity and offer Indian investors greater access to a global IT giant. The impact rating on the Indian stock market, specifically the IT sector, is 7/10.

Difficult Terms: Constant Currency: A method of reporting financial results that excludes the effects of foreign exchange rate fluctuations, allowing for a clearer comparison of performance over different periods. Operating Margin: A profitability ratio that measures how much profit is generated from a company's core business operations for every dollar of revenue. It is calculated as Operating Income divided by Revenue. TCV (Total Contract Value): The total value of a contract over its entire term, encompassing all expected revenue from recurring fees, one-time charges, and professional services. Inorganic Contribution: Growth in revenue that results from acquisitions or mergers, rather than from the expansion of the company's existing business operations. Basis Points (bps): A unit of measure used in finance equal to 1/100th of a percentage point. For example, 250 basis points is equal to 2.5%. Nearshore Capacities: Refers to business operations or service delivery centers located in countries geographically close to the company's primary market, facilitating easier communication and collaboration. H-1B Visas: A non-immigrant visa classification that allows U.S. employers to temporarily employ foreign workers in specialty occupations requiring theoretical or technical expertise.