Cognizant posts 22% rise in Q2 net profit to $566 million
IT services major Cognizant reported a sound Q2 performance on Wednesday on the back of growth revival in two of its largest verticals-financial services and healthcare
image for illustrative purpose
Bengaluru, 1 August: IT services major Cognizant reported a sound Q2 performance on Wednesday on the back of growth revival in two of its largest verticals-financial services and healthcare.
The Nasdaq-listed company posted a 22.2 per cent rise in its net profit at $566 million year-on-year (YoY) basis during Q2. It posted a revenue of $4.9 billion, an increase of 2.1% in constant currency term over the previous quarter and almost flat over the same period of last year. Cognizant follows January-December financial year cycle.
“In the second quarter, we delivered revenue above the high end of our guidance range, expanded adjusted operating margin, and maintained our large deal momentum. We believe our performance this quarter and the improved organic growth outlook for the full year demonstrate how our execution against these priorities is beginning to translate to our results," Ravi Kumar S, CEO of Cognizant said.
The global IT major has increased its full year 2024 revenue guidance in the range of $19.3 billion to $19.5 billion, which translates into (-)0.5 per cent to (+)1.0 per cent in constant currency (cc) terms.
The company also saw its operating margin expanding to 14.6 per cent from 11.8 per cent posted a year ago.
“Sequential revenue growth of 2.1 per cent in constant currency, driven by our financial services and health sciences segments, was the strongest in two years. Our NextGen programme has helped us fund investments in support of revenue growth and deliver 70 basis points of adjusted operating margin expansion in the first half of 2024. We enter the third quarter with improved revenue momentum and remain committed to driving operational excellence," Jatin Dalal, CFO at Cognizant said.
However, the IT firm with majority of its employees operating out of India, saw its headcount falling by 8,100 to 336,300 by the end of June quarter.
