Cognizant Q3 profit up 2.8% sequentially; full year guidance revised up
Cognizant Technology Solutions Corp reported a 2.8% sequential increase in its third-quarter profit, driven by strong demand for its digital services. The company also raised its full-year revenue forecast, signaling continued growth in the technology sector.
The technology consulting and outsourcing company reported a net income of $462 million for the quarter ended September 30, up from $450 million in the previous quarter. Revenue for the quarter rose 1.6% sequentially to $4.59 billion.
Cognizant’s performance reflects the ongoing strength in the technology industry, with companies accelerating their digital transformation initiatives. The company’s digital services business, which includes cloud computing, artificial intelligence, and data analytics, continued to perform well, generating 53% of total revenue.
“Our strong third-quarter results demonstrate the continued demand for Cognizant’s differentiated capabilities and services across key industries,” said Brian Humphries, CEO of Cognizant. “We are executing our strategy of building a leading digital engineering and consulting company, with strong performance across all our segments.”
Cognizant also revised its full-year revenue forecast upward. The company now expects revenue for 2023 to be between $18.2 billion and $18.4 billion, compared to its previous guidance of $18.0 billion to $18.2 billion. This reflects the strong demand environment and the company’s continued momentum.
“We are confident that our ability to deliver innovative solutions and services to our clients will continue to drive growth in the years to come,” Humphries said.
Cognizant’s results came as the technology sector continues to navigate macroeconomic uncertainties. The company said it is closely monitoring global economic conditions but remains optimistic about the long-term prospects for digital transformation.
“While we remain mindful of the macroeconomic headwinds, we see a significant opportunity ahead as organizations across all industries continue their digital journeys,” Humphries said.
Shares of Cognizant rose over 1% in after-hours trading following the release of the results.
