Cognizant Q3 revenue jumps 11% to $4.7 bn on demand boost

Cognizant Technology Solutions Corp. on Thursday reported an 11 per cent year-on-year (YoY) rise in its revenue in constant currency to $4.7 billion for the September quarter (Q3) as the IT major's business momentum, mainly in digital services, continued to improve. 

Cognizant follows a January to December accounting year. The US-based IT company also expects its full-year revenue for 2021 to increase 9.8 per cent in constant currency to $18.5 billion, which would be Cognizant's highest annual revenue to date. 

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The company's digital revenue jumped 18 per cent annually and contributed 44 per cent to total revenues for the September quarter in view of digital booking continuing to grow. Cognizant continues to concentrate on areas of analytics, cloud, digital engineering, internet of things (IoT), and artificial intelligence (AI).

"While the industry faces an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and stayed focused on delivering against our client commitments and our strategic repositioning, said Brian Humphries, chief executive officer, Cognizant.

"We continue to make important investments to ensure Cognizant is well-positioned to serve our clients as they embrace digital business models," he added.

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Cognizant's adjusted operating margin for Q3 stood at 15.8 per cent against 15.9 per cent during the same quarter of the previous year. The company has infused $3 billion in strategic mergers and acquisitions over three years, comprising the acquisitions of Hunter Technical Resources and TQS Integration in the third quarter.

Revenue from financial services was up 4.3 per cent in constant currency as compared to the year-ago period, whereas healthcare revenue grew 9.8 per cent annually in constant currency.

The company's products and resources revenue increased 18.1 per cent annually in constant currency, while communications, media and technology revenue grow 19.1 per cent YoY in constant currency.