cognizant q4 results: Cognizant Q4 results: revenue dips 1.7%, profit rises to $558 million

US-based Cognizant Technology Solutions posted a 1.7% year-on-year fall in revenue to $4.76 billion for the fourth quarter ending December, a likely eight-quarter low.

However, its net profit increased by over 7% to $558 million YoY for the October to December quarter from $521 million a year-ago period.

In constant currency terms, revenue fell 2.4% and sequentially, the revenue fell by 2.9% for the Nasdaq-listed information technology (IT) and professional services firm.
“We delivered Q4 revenue within our guided range and we’ve maintained our commercial momentum. Full-year bookings of $26.3 billion represent an increase of 9% year-over-year, driven by new clients and large deals,” said Ravi Kumar S, chief executive officer of Cognizant.

The company had guided for a decline of 4 to 1.2% for the quarter.

Its bookings in the fourth quarter declined 6% YoY. For the full year, bookings grew 9% year-over-year to $26.3 billion, which represented a book-to-bill of approximately 1.4x.

The company follows the calendar year.For the full year 2023, the global IT major posted a 0.4% YoY decline in revenue to $19.4 billion. In constant currency terms, it was 0.3% lower.

First quarter revenue is expected to be $4.68 – $4.76 billion, a decline of 2.7% to 1.2%, or a decline of 3.0% to 1.5% in constant currency, it said.

For full year 2024, revenue is expected to be $19.0 – $19.8 billion, a decline of 1.8% to growth of 2.2% as reported, or a decline of 2.0% to growth of 2.0% in constant currency.