Cognizant has officially postponed salary hikes for 2025citing ongoing macroeconomic uncertainty. Chief Financial Officer Jatin Dalal confirmed that no fixed timeline has been set for employee increments. Traditionally, the IT major begins its annual hike cycle on August 1but in 2025, most employees may have to wait until later in the year, if at all.

This move comes as no surprise in the current environment, as TCS, Wipro, and HCLTech have also opted for a cautious compensation approach. Only Infosys has rolled out wage hikes among the Tier-I IT giants so far.

Strong Financials Amid Cost Caution

The salary delay contrasts sharply with Cognizant’s strong financial performance. The company reported a 14% rise in net profit in Q2 2025, reaching $645 millionalongside an 8.1% revenue increase to $5.25 billionbeating analyst estimates.

Driven by large deals in health sciences and financial services, Cognizant also raised its full-year revenue guidance to 4–6%up from 3.5–6%. This signals robust demand for its services, even amid global uncertainties.

Hiring and Upskilling Continue

While salary raises are on hold, hiring is not. Cognizant added 7,500 employees in Q2 2025 and plans to hire 15,000 to 20,000 freshers this year, mainly in India. Attrition dropped to 15.2%a positive sign compared to past years.

The company is also investing in long-term capabilitieslaunching a 21-acre AI-focused learning campus in Chennai to prepare its workforce for next-generation technologies like GenAI and platform-led growth.

A Balancing Act

Cognizant’s current strategy reflects a balancing act between financial discipline and future readiness. While employee compensation faces delays, the company continues to invest in its people and platforms—positioning itself for resilience in a volatile market.

As macroeconomic pressures persist, the focus seems clear: hold costs, build capabilities, and prepare for the long game.