Cognizant profit dips 2.1% on year, revenue up 6.8%

Income was throughout the guided vary growing by 6.8% to $5.08 billion for the October to December quarter helped by its two acquisitions final 12 months. The income grew $4.76 billion in the identical quarter a 12 months in the past. In Q3, the corporate had guided income to between 5.1% and seven.1% and $5.0-5.1 billion for This fall.

For the total 12 months ending December, revenue grew 5.3% to $2.2 billion from $2.1 billion in FY23, whereas income grew 2% year-on-year (YoY) and 1.9% in fixed forex (cc) phrases to $19.7 billion from $19.3 billion in FY23.

Cognizant follows the calendar 12 months.

Income continued to be supported by Well being Sciences vertical which grew 4.5% whereas monetary providers continued to say no by 1.1% in cc phrases.

“We exited the 12 months with momentum — closing a file 29 massive offers through the 12 months — highlighting the effectiveness of our technique. In 2024, we accelerated investments in our AI-led platforms and added new capabilities with the acquisitions of Thirdera and Belcan, additional strengthening and diversifying our portfolio,” mentioned Ravi Kumar S, chief government officer at Cognizant.

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SteerageThe Nasdaq-listed IT firm raised its annual steering projected within the vary $20.3-20.8 billion, rising 3.5% to six.0% YoY in fixed forex (cc) phrases. Steerage for Q1 continued to be the identical as earlier quarter’s projections in absolute phrases to be within the $5.0-5.1 billion vary. This interprets right into a progress up by 6.5% to eight.0% YoY in cc phrases.

That is greater in proportion phrases than what the corporate had guided in Q3 which was within the 1.4% -1.9% for the total 12 months and final 12 months’s outlook was within the vary of -2% to 2% in CC phrases.

“We’re getting some discretionary spend again, and due to this fact the amount or the feel of progress shall be barely totally different for 2025, the place you will note each the short-end work in addition to the volumes that are being added by the big contracts of huge offers,” mentioned chief monetary officer Jatin Dalal informed analysts after declaring the This fall outcomes.