Cognizant reports 56% rise in Q3 net profit at $544 million

Our Bureau Chennai | Updated on October 28, 2021

Brian Humphries, CEO, Cognizant   -  BUSINESS LINE

Revenue grew 12 per cent year-on-year to $4.74 billion; recruited over 17,000 workers

Cognizant, the US-based IT company with a large presence in India, reported a 56 per cent increase in net profit to $544 million in the third quarter of 2021, as against $348 million in the same period last year. It reported a revenue growth of 12 per cent year-on-year to $4.74 billion, with all segments growing, as against $4.24 billion in the corresponding period of last year.

Digital revenue formed 44 per cent of total revenue, growing at 18 per cent in Q3.

Fiscal year 2021 guidance is for 11 per cent revenue growth to $18.5 billion, which would be Cognizant’s highest annual revenue to date.

The company added over 17,000 hires during the quarter, growing its headcount by over 35,000 since last year. The global headcount as of end-Q3 was 318,400, says a company press release.

Cognizant CEO Brian Humphries said in the release that “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. We continue to make important investments to ensure Cognizant is well positioned to serve our clients as they embrace digital business models”.

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Q3 bookings grew 24 per cent year-over-year, bringing year-to-date bookings growth to 13 per cent. Cognizant Chief Financial Officer Jan Siegmund said, “During the third quarter, we drove strong bookings growth and maintained our revenue momentum in a robust demand environment. We are pleased with our ongoing investments in recruiting, which enabled us to support accelerating demand by meaningfully scaling our headcount.”

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Fourth-quarter revenue is expected to be $4.75-4.79 billion and full-year 2021 revenue about $18.5 billion — a growth of 11.1 per cent.

The company has invested $3 billion in strategic mergers and acquisitions over three years, including the Q3 acquisitions of TQS Integration and Hunter Technical Resources, the release said.

Published on October 28, 2021

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