BENGALURU: Nasdaq-listed technology major Cognizant has reported $566 million net profit, up 22.2%, in the quarter ended June 2024. The company's net profit in the same quarter last year was $463 million.
Its revenue in the June quarter stood at $4.85 billion, a decrease of 0.6% compared to $4.88 billion in the year-ago period.
Cognizant, which follows a January-December calendar year, has increased its full year 2024 revenue guidance, and it is expected to be $19.3 - $19.5 billion, a decline of 0.5% to an increase of 1.0%. This assumes about 70 basis points of inorganic contribution, the company said.
Its third quarter revenue is expected to be $4.89 - $4.96 billion, a decline of 0.2% to an increase of 1.3%. Cognizant's operating margin stood at 14.6%, up from 11.8% in the second quarter of 2023, and its trailing 12-month bookings stood at $26.2 billion. Bookings in the second quarter increased 5% y-o-y.
"In the second quarter, we delivered revenue above the high end of our guidance range, expanded adjusted operating margin, and maintained our large deal momentum," said Ravi Kumar S, Chief Executive Officer. "Progress against our strategic priorities is opening new opportunities with clients and allowing us to operate with greater agility. We believe our performance this quarter and the improved organic growth outlook for the full year demonstrate how our execution against these priorities is beginning to translate to our results and support long-term shareholder value," he added.
"Sequential revenue growth of 2.1% in constant currency, driven by our Financial Services and Health Sciences segments, was the strongest in two years," said Jatin Dalal, Chief Financial Officer.
"Our NextGen program has helped us fund investments in support of revenue growth and deliver 70 basis points of adjusted operating margin expansion in the first half of 2024. We enter the third quarter with improved revenue momentum and remain committed to driving operational excellence," Dalal added.
The company's total headcount at the end of the second quarter was 336,300, a decrease of 8,100 from Q1 2024 and a decrease of 9,300 from Q2 2023. Its voluntary attrition - Tech Services on a trailing-12 months basis stood at 13.6% compared to 19.9% for the period ended June 30, 2023.