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Cognizant closes Q3 with $4.9 bn revenue, to acquire OneSource (Ld)

Cognizant closes Q3 with $4.9 bn revenue, to acquire OneSource (Ld)
Business2 min read
Nasdaq-listed Cognizant Technology Solutions (Cognizant) closed the third quarter with a 2.4 per cent revenue growth.

According to Cognizant, the revenue for Q3 went up to about $4.9 billion up from about $4.7 billion in Q3 2021.

The company follows the calendar year as its accounting year.

The earnings per share stood at $1.17 ($1.06 Q32021).

"Revenue and bookings were below our expectations as company-specific fulfilment challenges were compounded by the impact of an uncertain macroeconomic backdrop," said Brian Humphries, Chief Executive Officer.

"We are confident the steps we are taking will return the company to accelerated growth over the medium to long term," he added.

According to Cognizant, financial services revenue declined 1.5 per cent year-over-year but grew 1.6 per cent in constant currency.

Growth was driven by digital services among the public sector clients in the UK and insurance clients. Growth was offset by 180 basis points of negative impact related to the previously disclosed sale of the Samlink subsidiary (completed February 1, 2022), the company said.

Health Sciences revenue grew 3.8 per cent year-over-year, or 5.5 per cent in constant currency. Growth was driven by digital services among pharmaceutical and healthcare payer clients.

Products and resources revenue grew 3.7 per cent year-over-year, or 8.2 per cent in constant currency, driven by digital services among logistics, automotive, consumer goods and travel and hospitality clients.

Communications, Media and Technology revenue grew six per cent year-over-year, or 10.4 per cent in constant currency, driven by strength among digital native companies, Cognizant said.

The total number of employees stood at 3,49,400 after adding 8,100 employees during the quarter under review.

The annualised voluntary attrition stood at 29 per cent, the company said.

As to the revenue guidance for the year, Cognizant said the fourth quarter is expected to be $4.72-$4.77 billion.

Full-year 2022 revenue is expected to be approximately $19.3 billion.

Cognizant also said it has agreed to acquire the professional services and application management practices of US-based OneSource.

Once the deal is done, Cognizant will add 400 employees to its fold.

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