Cognizant Q3 net income up 10.8% on deal pickup

Nasdaq-listed information technology (IT) major Cognizant Technology Solutions beat Wall Street estimates for third-quarter profit and narrowed the guidance thanks to the Belcan acquisition in August.

- SHIVANI SHINDE

The IT major now expects annual revenue between $19.7 billion and $19.8 billion. "Full-year 2024 revenue guidance narrowed to growth of 1.4 per cent to 1.9 per cent on constant currency, unchanged at the midpoint," the company said.

The company announced a net income of $582 million in Q3, up 10.8 per cent year-on-year (Y-o-Y). Sequentially, the net income grew 0.8 per cent compared to Q2FY4. Cognizant follows a January-December financial reporting period.

In Q3FY24, revenue increased by 2.7 per cent on a constant currency basis, reaching $5 billion, while reported revenue grew by 3 per cent. This revenue growth in Q3 exceeded the guidance provided by the company in Q2.

In North America, business grew by 3.8 per cent Y-o-Y, and the rest of the world saw 4.3 per cent growth.