DBT Bureau
Bengaluru, 1 August 2024
Nasdaq-listed Cognizant Technologies posted better than expected Q2 (April-June) results on the back of growth recovery in its key verticals- healthcare and financial services. On the back of project ramp-ups and market share gain, the company raised its revenue guidance for the whole year.
Cognizant, which follows January-December financial year cycle, posted a revenue of $4.9 billion, an increase of 2.1% in constant currency term over the previous quarter. Its operating margin expanded to 14.6% from 11.8% posted a year ago.
“In the second quarter, we delivered revenue above the high end of our guidance range, expanded adjusted operating margin, and maintained our large deal momentum,” said Ravi Kumar S, Chief Executive Officer of Cognizant.
“We believe our performance this quarter and the improved organic growth outlook for the full year demonstrate how our execution against these priorities is beginning to translate to our results,” he added.
The global IT major, which has more than 70% of its staffers operating out of India, has increased its full year revenue guidance in the range of $19.3 to $19.5 billion, translating to minus 0.5% to +1.0% y-o-y in constant currency (cc) terms. According to the company, this growth projections include around 70 basis points contribution coming from acquisitions.
Among verticals, both healthcare and financial services witnessed sequential rise in revenues, indicating better growth prospects for the company in the coming quarters.
“Sequential revenue growth of 2.1% in constant currency, driven by our Financial Services and Health Sciences segments, was the strongest in two years. Our NextGen programme has helped us fund investments in support of revenue growth and deliver 70 basis points of adjusted operating margin expansion in the first half of 2024. We enter the third quarter with improved revenue momentum and remain committed to driving operational excellence,” ,” said Jatin Dalal, Chief Financial Officer of Cognizant said.
In the second quarter ended June, total headcount of Cognizant stood at 336,300, a decrease of 8,100 from the previous quarter.
