Cognizant reports $4.9 billion revenue in Q2; CFO to retire in 2024

Cognizant, which follows the calendar year, saw bookings growth of 17% y-o-y in the June quarter.
The logo of Cognizant.
The logo of Cognizant.

BENGALURU: Cognizant has reported $4.9 billion revenue, a 0.4% y-o-y decline, for the second quarter ended June 30, 2023. Its net profit for the quarter declined by 24.6% to $463 million compared to $577 million in the same quarter last year.

Cognizant, which follows the calendar year, saw bookings growth of 17% y-o-y in the June quarter.

"We made continued progress during the quarter amid an uncertain economic backdrop," said Ravi Kumar S, Chief Executive Officer, Cognizant.

"We maintained our commercial momentum, with strong bookings growth of 17% year over year, including roughly a third of in-quarter bookings from large deals. We also saw a return to sequential revenue growth, and our initial investment in the Cognizant Neuro AI platform has helped drive more than 100 early engagements as clients embrace generative AI," he said.

The IT major's Voluntary attrition - Tech Services on a trailing-twelve-month basis, declined to 19.9% from 23.1% in Q1 2023 and 31.1% in Q2 2022.

The CEO said the continued reduction in voluntary attrition, improved employee engagement and higher customer satisfaction scores reflect the interdependence of our client and employee experience.

The company also announced that its CFO Jan Siegmund intends to retire in early 2024.  Siegmund will stay in his role until the company identifies a successor and the transition period is completed. Cognizant is conducting a search for a CFO and evaluating internal and external candidates.

"Cognizant's second quarter revenue grew more than 1% sequentially, at the high-end of our guidance range, while profitability was slightly ahead of expectations," said Jan Siegmund, CFO. "Maintaining our balanced capital allocation approach, we have returned over $700 million to shareholders year-to-date," he added.

It expects third quarter revenue to be $4.89 - $4.94 billion, growth of 0.6% to 1.6%, or a decline of 0.5% to growth of 0.5% in constant currency. For full-year 2023 revenue is expected to be $19.2 - $19.6 billion, or a decline of 0.9% to growth of 1.1%.

The company's total headcount at the end of the second quarter stood at 345,600, a decrease of 5,900 from Q1 2023.

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