Cognizant reports 12% increase in net profit at $563 million in Q1

Our Bureau | | Updated on: May 05, 2022
Brian Humphries, CEO, Cognizant

Brian Humphries, CEO, Cognizant

Digital revenue grew 20% year-over-year

Cognizant Technology Solutions reported 12 per cent growth in net profit to $563 million in the first quarter ended March 31, 2022, as against $505 million in the same quarter last year. Revenue was up 10 per cent to $4.8 billion, with all business segments contributing.

Digital revenue grew 20 per cent year-over-year, while bookings grew 4 per cent year-over-year, trailing 12-month bookings of $23.4 billion, the US-based software company with a large offshore presence in India said in a release.

For the full year 2022, the company expects revenue of $19.8–20.2 billion, or growth of 7.2–9.2 per cent (9–11 per cent in constant currency). This is slightly lower than the range of $20–20.5 billion, or growth of 7.8–10.8 per cent (8.5–11.5 per cent in constant currency) announced in the previous quarter.

Jan Siegmund, CFO, Cognizant, said in a release, "Our updated 2022 constant currency revenue guidance includes an improved organic revenue growth outlook and a lower inorganic contribution, reflecting a disciplined acquisition strategy."

Brian Humphries, CEO, Cognizant, said, "Thanks to our talented employees, we delivered on our first-quarter commitments in what is an intensely competitive global labour market. While the economic backdrop is uncertain, we remain optimistic about the demand outlook for our solutions. Our strategic repositioning enables us to engage more deeply with clients, helping them succeed, and supports our growth trajectory."

In Q1, financial services revenue grew 4.8 per cent year-over-year, reflecting the demand for digital services, partially offset by clients' focus on cost optimisation. In February 2022 the sale of the Samlink subsidiary was completed, which negatively impacted segment revenue growth by about 130 basis points.

Healthcare revenue grew 8.1 per cent year-over-year, driven by demand for digital services among life-sciences clients, including digitisation of clinical trial processes and investments in modernisation of manufacturing operations.

Products and resources revenue grew 13.2 per cent year-over-year, with demand for digital services across industries, and included the benefit from recently completed acquisitions.

The communications, media and technology division reported 18.1 per cent growth, reflecting demand for data services among digital-native companies, the release said.

Cognizant added about 9,800 new employees in the first quarter to take the global headcount to 340,000.

Published on May 05, 2022
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