Cognizant Technology Solutions reported a 16 per cent drop in net profit to $525 million for the third quarter ended September 30, 2023 as against $629 million for the same period last year. Revenue was almost flat at $4.89 billion ($4.85 billion). The company incurred restructuring charges of $72 million reported in Q3.

“We strengthened the company’s fundamentals during the third quarter as reflected in higher customer satisfaction scores, significantly lower voluntary attrition, and continued growth in bookings, despite ongoing economic uncertainty,” said Ravi Kumar S, Chief Executive Officer. “We are investing to put Cognizant in the best position to serve clients as they strive to reduce costs, digitally transform their businesses and embrace generative AI.”

Bookings

Bookings in the third quarter grew 9 per cent year-over-year. On a trailing-twelve-month basis, bookings grew 16 per cent year-over-year to $26.9 billion, which represented a book-to-bill of approximately 1.4 times, says a release.

Employee

Total headcount at the end of the third quarter was 346,600, an increase of 1,000 from Q2 2023 and a decrease of 2,800 from Q3 2022. Voluntary attrition - Tech Services on a trailing-twelve-month basis, declined to 16.2 per cent from 19.9 per cent in Q2 2023 and 29.2 per cent in Q3 2022.

Revenue from financial services Q3 2023 declined in Q3 2023 when compared with Q3 2022. Revenue was flat in health services but increased from communication, media and technology and products and technology increased in the period under review.

The company said that the full-year 2023 revenue is expected to be $19.3 - $19.4 billion, the release said.

“Cognizant delivered third-quarter revenue within our guidance range along with an adjusted operating margin above our expectations, evidencing progress with our NextGen program,” said Jan Siegmund, Chief Financial Officer. “We have narrowed our full-year revenue guidance range, which now reflects recent discretionary spending pressure and its impact to our near-term revenue expectations. We have also updated our adjusted operating margin guidance to approximately 14.7%, which is the high-end of our prior range, reflecting our continuing focus on enhancing operational discipline.”

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