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Cognizant’s December quarter revenue at eight-quarter low

Chennai: IT Services Head Cognizant Technology Solutions Posted 0.3% on Wednesday decline (constant currency terms) throughout 2023 Income At $19.4 billion as demand continues to remain weak IT sector,
Quarterly revenue for October-December was $4.76 billion, a decline of 2.4% year-on-year, according to CC. Cognizant follows calendar year accounting. Financial services and healthcare – Cognizant’s top verticals – both reported a decline of 6.6% and 2.7% in revenue. However, quarterly net income increased from $521 million in December 2022 to $558 million in December 2023 as the company’s cost optimization program NextGen started showing results.
Cognizant, which derives bulk of revenues from North America and Europe markets, expects headwinds to continue. The company guided for full-year revenue of $19 – $19.8 billion, an increase of 2% in CC terms with a decline of 2.5%.
Cognizant CEO said, “We delivered Q4 revenue within our guided range and we have maintained our business momentum… To advance our ability to design and deliver solutions, we are focusing on generative AI, cloud, data “Will continue to invest in modernization, digital engineering and IoT.” Ravi Kumar S said.
booking in fourth quarter Declined 6% year-on-year. For the full year, bookings increased 9% year-over-year to $26.3 billion,
The total number of employees at the end of the fourth quarter was 347,700, an increase of 1,100 from September 2023 and a decrease of 7,600 from December 2022.
Voluntary attrition – technical services stood at 13.8% for the year ending December 31, 2023, while it was 25.6% for the year ending December 2022.
Cognizant CFO said, “The sequential improvement in adjusted operating margin to 16.1% in the fourth quarter reflects our ongoing operational rigor and our NextGen cost optimization program, which has positioned us to exceed our margin commitment and improve future revenue growth. “Enabled us to continue investing in our strategy.” Jatin Dalal.

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