Cognizant Technology Solutions will pay out 100% discretionary bonuses for 2025 after achieving a key internal growth milestone ahead of schedule, signalling a stronger competitive position among global IT services peers.
Moneycontrol reported that the decision was communicated to employees by chief executive Ravi Kumar S, who said the company’s 2025 performance reflected disciplined execution, sustained effort and client commitment. The leadership team has authorised full funding of the bonus programme, according to the internal note accessed by the outlet.
Cognizant, which employs more than 350,000 people globally with the majority based in India, uses a benchmark known internally as the “Winner’s Circle” to track its relative standing against major competitors. The metric evaluates performance across revenue growth, margins and execution indicators.
The Teaneck-headquartered firm had previously targeted reaching this top-tier bracket by 2027 but achieved it in calendar year 2025, two years earlier than planned.
Speaking on the company’s post-earnings analyst call, Kumar said entering the Winner’s Circle ahead of schedule underscored the consistency of Cognizant’s execution and progress on both growth and profitability.
The company also exceeded its fourth-quarter revenue guidance, offering early indications that its investments in artificial intelligence are beginning to translate into measurable growth, even as client spending remains cautious and near-term demand visibility stays limited.
Cognizant has not yet detailed how individual bonus payouts will be calculated.
The company’s improved standing followed constant currency revenue growth of 6.4% in 2025, which Moneycontrol described as the strongest among large IT services firms. Comparisons across the sector remain indicative given differing fiscal year reporting cycles, but the outlet noted that Accenture grew 6.25%, HCLTech 4.8%, Infosys 3.15% and Tata Consultancy Services 0.78%, while Wipro posted a decline.
Cognizant said its Winner’s Circle status was determined by how its constant currency revenue growth ranked within a defined peer set in 2025. Internal benchmarking showed the company steadily improving its position, moving from 10th place in 2022 to the top tier in 2025.
The firm also clarified that the milestone reflects relative performance improvement rather than absolute growth alone, marking a narrowing gap with competitors over the past three years.
For Cognizant, the bonus announcement lands at a moment when global IT services firms are under pressure to deliver growth alongside margin discipline, as clients scrutinise technology spending and the industry accelerates its shift towards AI-led delivery models.