Home Market Cognizant Q2 revenue rises 9% to $4 billion, beats estimates

Cognizant Q2 revenue rises 9% to $4 billion, beats estimates

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Cognizant Technology Solutions on Thursday reported 9.2 percent rise in quarterly revenue at Rs $4.01 billion for June quarter, as it benefitted from higher spending by clients in the healthcare and financial industries. The figure stood at $3.67 billion in the second quarter of 2017.

However, the company said GAAP net income fell to $456 million, or 78 cents per share in the second quarter ended June 30, from $470 million, or 80 cents per share, a year earlier.

Analysts on an average had expected profit of $1.10 per share and revenue of $4.03 billion, according to Thomson Reuters I/B/E/S.

The decrease in GAAP net income was primarily due to net non-operating foreign exchange losses driven by the depreciation of the Indian rupee versus the prior year period and the initial funding of the Cognizant US Foundation.

Non-GAAP diluted EPS was $1.19, compared to $0.93 in the second quarter of 2017.

"As our second-quarter results confirm, we're making solid progress on our plan to accelerate our shift to digital services and solutions," said Francisco D'Souza, Chief Executive Officer and Vice Chairman of the Board.

"Weve been methodical in developing, aligning, and applying our portfolio of skills, services, and solutions to clients' needs, so they can become fully digital organizations. And we remain confident in our ability to invest for growth and achieve our financial targets."

Third Quarter & Full Year 2018 Outlook
The company projected the third quarter 2018 revenue to be in the range of $4.06 billion to $4.10 billion. However, the third quarter 2018 non-GAAP diluted EPS is expected to be at least $1.13.

“Full year 2018 revenue expected to be in the range of $16.05 billion to $16.30 billion, whereas full year 2018 non-GAAP diluted EPS expected to be at least $4.50,” Cognizant said in a release.

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