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Cognizant reports 1.7% sequential revenue rise in September quarter

The Teaneck, New Jersey-based technology services firm said it expects December quarter revenue in the range of $4.09 billion to $4.13 billion

October 30, 2018 / 05:06 PM IST
Cognizant

Cognizant

Cognizant Technology Solutions Corporation on October 30 reported third-quarter revenue of $4.08 billion, up 1.74 percent from the previous three month period.

The revenue includes a negative foreign currency impact of 70 basis points, Cognizant said.

The Teaneck, New Jersey-based technology services firm said it expects fourth-quarter revenue in the range of $4.09 billion to $4.13 billion. This translates to a sequential growth of 0.25-1.23 percent.

Net income in the September-ended quarter was $477 million, up 4.6 percent from $456 million in the previous quarter.

Operating margin was 18.1 percent, up from 16.7 percent in the previous quarter.

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The company attributed the margin rise to improvements in its business over the last almost two years, depreciation of the Indian rupee and emphasis on digital services that are helping Cognizant win more business with attractive margins.

Quarterly GAAP diluted earnings per share was $0.82, up from $0.78 in the June-ended quarter.

Digital revenue grew in the low 20 percent range, the company said.

“Cognizant delivered strong third-quarter results in three of our four business segments,” said Francisco D’Souza, Chief Executive Officer and Vice Chairman of the Board.

The company continued the shift to digital by building new capabilities and helping its clients excel with digital services and solutions, he added.

The Communications, media and technology business clocked a growth of  17.1 percent year on year (YoY), products and resources rose 11.5 percent, and healthcare was up 9.6 percent.

Financial services business grew 2.6 percent annually.

Financial services is Cognizant's largest business vertical, accounting for 35.9 percent of overall revenue.

Its second largest vertical, healthcare, accounting for 29.2 percent of total revenue was helped by recent acquisitions which "are enabling us to provide a broader range of services to healthcare providers and capture new growth opportunities; also seeing traction in our Life Sciences platform solutions," Cognizant said in a statement.

Cognizant added 5,300 employees during the quarter, and 14,200 employees so far in the year. The total company headcount as of September 30, 2018, was 274,200.
Moneycontrol News
first published: Oct 30, 2018 05:06 pm

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