Shares of major Indian IT companies such as TCS, Infosys, Wipro, and HCL Technologies surged on May 2 after Cognizant Technology Solutions reported stronger-than-expected first-quarter results and raised its annual revenue forecast, fueled by increased demand for AI-driven IT services. These gains outpaced the 1% rise in the Nifty IT index.<\/p>\n
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Indian IT stocks, including TCS and Infosys, surged following Cognizant’s impressive Q1 results and its upbeat outlook for the year.<\/p>\n
Despite a challenging start to the year, with the Nifty IT index down nearly 17.5% so far in 2025, the sector has seen a notable rebound of around 11% since April 9. This recovery coincided with US President Donald Trump\u2019s decision to pause reciprocal tariffs for 90 days, providing some relief to the IT sector.<\/p>\n
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The Nifty IT index has rebounded by 11% since April 9, with Cognizant’s results boosting investor sentiment.<\/p>\n
Cognizant’s first-quarter performance exceeded both its own guidance and Wall Street estimates. The company reported Q1 revenue of $5.1 billion, reflecting a 7.5% year-over-year increase (8.2% in constant currency), surpassing its forecasted $5.07 billion. Net profit surged by 21%, reaching $663 million for the quarter ended March 31, 2025.<\/p>\n
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Cognizant’s revenue grew by 7.5% year-over-year, surpassing expectations, with a notable 21% increase in net profit.<\/p>\n
Cognizant maintained its full-year constant currency revenue growth forecast at 3.5\u20136%, though it issued a more cautious projection for Q2, expecting sequential growth of 5\u20136.5%. Despite the slightly weaker Q2 forecast, the company reported no significant macroeconomic disruptions or client cancellations during Q1, with resilient demand from the financial services sector.<\/p>\n
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Cognizant raised its full-year revenue forecast but projected slower growth in Q2 due to a cautious outlook.<\/p>\n
Cognizant\u2019s bookings rose by 3% year-over-year to $26.7 billion, with a healthy book-to-bill ratio of 1.3x. However, Q1 bookings were 7% lower than the same period last year. The company signed four large deals, each valued at over $100 million, down from ten in the previous quarter.<\/p>\n
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Bookings grew 3% year-over-year, but Q1 bookings fell by 7%, with four large deals signed during the quarter.<\/p>\n
Analysts from CLSA noted that the rebound in healthcare and BFSI (Banking, Financial Services, and Insurance) sectors, particularly after a two-year slump in BFSI, represents a significant shift for IT firms with high exposure to these sectors. This change could benefit companies like Cognizant and other IT players heavily involved in these industries.<\/p>\n
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The recovery in healthcare and BFSI sectors signals a positive shift for IT firms with substantial exposure to these markets.<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares of major Indian IT companies such as TCS, Infosys, Wipro, and HCL Technologies surged on May 2 after Cognizant Technology Solutions reported stronger-than-expected first-quarter results and raised its annual revenue forecast, fueled by increased demand for AI-driven IT services. These gains outpaced the 1% rise in the Nifty IT index. Highlight:Indian IT stocks, including […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-8014","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=8014"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8014\/revisions"}],"predecessor-version":[{"id":8016,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8014\/revisions\/8016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/8015"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=8014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=8014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=8014"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=8014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}