Cognizant revenue rises over 9%; reiterates FY guidance

BENGALURU: Cognizant’s second-quarter revenue rose over 9 per cent year-over-year to $4.01 billion, and the company’s adjusted operating margin touched 22 per cent, over a year after the company put in place measures to boost its profitability.

For the full year, Cognizant reiterated its revenue target of between $16.05 billion and $16.30 billion, implying growth of 8 to 10 per cent. For the third-quarter, Cognizant expects revenue of between 1.2 per cent-2.2 per cent.

“As our second-quarter results confirm, we're making solid progress on our plan to accelerate our shift to digital services and solutions. We've been methodical in developing, aligning, and applying our portfolio of skills, services, and solutions to clients' needs, so they can become fully digital organizations. And we remain confident in our ability to invest for growth and achieve our financial targets,” Francisco D’souza, CEO of Cognizant said in a statement.

But the company’s banking and financial services business remained a drag. Revenue from BFSI grew 4.5 per cent year-over-year, half the company growth average.