Monday, July 15, 2024

Cognizant Sees 5.8% Decline in Q1 Profits Despite Steady Fiscal Outlook for 2024


Latest News | Cognizant March Quarter Net Profit Declines 5.8% to USD 546 Million

Nasdaq-listed IT services giant Cognizant has observed a 5.8 percent downtick in its net profit year-over-year, landing at USD 546 million for the March quarter. Amid this financial backdrop, Cognizant’s leaders maintain a steady outlook for the fiscal year 2024, anticipating a performance range that could either slightly contract by 2 percent or grow up to 2 percent in constant currency terms.

The performance metrics for the initial quarter ending March 31, 2024, showed revenues touching USD 4.76 billion. This figure represents a slight reduction of one percent compared to the corresponding period in the prior year. Cognizant’s foray into 2024 was marked by a revenue tally that surpassed the upper limit of their forecasted range, signaling a resilient stride amidst evolving market conditions.

Ravi Kumar S, CEO of Cognizant, shared insights into the company‚Äôs quarterly achievements, emphasizing the strategic progress and enhanced deal momentum. “We have built upon our large deal momentum of 2023, signing eight significant deals during the quarter, each with a total contract value of at least USD 100 million,” he remarked.

The CEO highlighted the company’s adaptability in the face of economic uncertainties, focusing on operational efficiencies, innovation, and AI-driven transformations to support client agendas.

Looking ahead, Cognizant’s revenue forecast for the full year remains steady. The range projects potential outcomes from a 2 percent decline to a 2 percent increase in constant currency, translating into an expected annual revenue of between USD 18.9 and USD 19.7 billion. This projection incorporates a modest up to 100 basis points from inorganic contributions, signaling a blend of cautious optimism and strategic growth initiatives.

As of the end of the first quarter, Cognizant’s workforce numbered at 344,400. This figure represents a sequential decrease from the previous quarter and a year-over-year decline, marking a compelling facet of the company’s operational adjustments and reshaping in response to market dynamics and strategic priorities.

As Cognizant navigates through shifting economic landscapes, its leadership and strategic orientation towards operational excellence, innovation, and AI-driven enterprise transformation underscore its resolve to thrive amidst challenges, steering the company towards sustained growth and client satisfaction in the unpredictable times ahead.

Jordan Clark
Jordan Clark
Jordan Clark brings a dynamic and investigative approach to business reporting. Holding a degree in Business Administration and a certification in Data Analysis, Jordan has an eye for detail and a knack for uncovering the stories behind the numbers. His career began in the bustling world of Silicon Valley startups, giving him firsthand experience in tech entrepreneurship and venture capital. Jordan's reports often focus on technology's impact on business, startup culture, and emerging

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