Cognizant projects revenue above estimates, CFO to retire in 2024


Cognizant's logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration

(Reuters) - Cognizant Technology Solutions forecast third-quarter revenue above estimates on Wednesday as more businesses turn to the IT services provider to digitize their operations, sending its shares up more than 6% after the bell.

The company also said CFO Jan Siegmund would retire in early 2024.

The New Jersey-based company expects current-quarter revenue of between $4.89 billion and $4.94 billion, compared with analysts' estimates of $4.86 billion, according to Refinitiv data.

While enterprise budgets have been tight due to economic uncertainty, businesses are still pressing on with digitization efforts as flagged by Cognizant's peers including TCS and Accenture.

The company now expects full-year adjusted profit per share in the range of $4.25 to $4.48, compared with an earlier estimate of between $4.11 and $4.34.

"The continued reduction in our voluntary attrition, improved employee engagement and higher customer satisfaction scores reflect the interdependence of our client and employee experience," said CEO Ravi Kumar S.

Revenue for the second quarter stood at $4.89 billion, slightly above estimates of $4.84 billion.

The company reported adjusted profit of $1.10 per share, compared with estimates of 99 cents.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

Sirius XM found liable in New York lawsuit over subscription cancellations
US Supreme Court tosses case involving securities fraud suit against Facebook
Amazon doubles down on AI startup Anthropic with $4 billion investment
Factbox-Who are bankrupt Northvolt's creditors?
UK should use new powers to probe Apple-Google mobile browser duopoly, report says
EU regulators scrap probe into Apple's e-book rules after complaint was withdrawn
Hyundai recalls over 145,000 electrified US vehicles on loss of drive power
'World of Warcraft' still going strong as it celebrates 20 years
Northvolt CEO steps down, saying group needs up to $1.2 billion
Bitcoin at record highs, sets sights on $100,000

Others Also Read