Cognizant Q4 profit up 7% at $558 mn, 2024 revenue guidance at -2% to 2%

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For the full year 2023, Cognizant’s revenue declined by 0.3 per cent YoY in constant currency to $19.4 billion, aligning with its growth guidance of $19.3 to $19.4 billion | File image


Nasdaq-listed Cognizant Technology Solutions has forecast its revenue for FY24 to be in the range of $19.0 to $19.8 billion, reflecting a decline of 2 per cent to a growth of 2 per cent in constant currency terms.


The firm, based in Teaneck, New Jersey, reported a 7 per cent increase in net profit at $558 million for the December quarter, up from $521 million in the corresponding period the previous year. Revenue decreased by 2.4 per cent in constant currency terms from the year-ago period to $4.75 billion, falling within its own guidance range of $4.69 to $4.82 billion. The company adheres to the calendar year as its financial year.

In comparison, Tata Consultancy Services (TCS) saw its dollar revenue grow by 1.7 per cent year-on-year (YoY) in constant currency to $7.3 billion for the December quarter. Infosys’ revenue fell by 1 per cent in constant currency to $4.7 billion for the quarter ending in December.


“We delivered fourth quarter revenue within our guided range and have maintained our commercial momentum. Full-year bookings of $26.3 billion represent a 9 per cent increase year-on-year, driven by new clients and large deals. To further enhance our capability in designing and delivering solutions, we continue to invest in generative artificial intelligence, cloud, data modernisation, digital engineering, and the Internet of Things,” stated Ravi Kumar S, CEO of Cognizant.


It has been one year since Kumar, former Infosys president, assumed the role of CEO at Cognizant on January 12, succeeding Brian Humphries, who left the company on March 15, 2023.


Growth in the fourth quarter was primarily led by the communications, media, and technology sector, which saw revenue rise by 2.6 per cent YoY in constant currency, followed by the products and resources sector with a 1.3 per cent growth. The financial services sector declined by 5.8 per cent, while health sciences saw a 2.1 per cent decrease YoY year in constant currency.


The voluntary attrition rate, calculated on a trailing 12-month basis, reduced to 13.8 per cent in the December quarter from 16.2 per cent in the preceding three months and 26 per cent YoY, indicating a downward trend across the industry. The total headcount at the end of the fourth quarter was 347,700, an increase of 1,100 from the third quarter of 2023 but a decrease of 7,600 from the fourth quarter of 2022.

First Published: Feb 07 2024 | 8:28 AM IST