CHENNAI/BENGALURU: IT services major Cognizant Technology Solutions on Wednesday posted a 0.3% decline in constant currency revenue for the full year 2023, at $19.4 billion, as weakness in demand continued to plague the IT sector.
Revenue for the Dec quarter came in at $4.8 billion – a 2.4 % decline in constant currency terms compared to the year-ago period. This is the lowest quarterly revenue in eight quarters. Cognizant follows calendar year accounting.
Revenue for the Dec quarter came in at $4.8 billion – a 2.4 % decline in constant currency terms compared to the year-ago period. This is the lowest quarterly revenue in eight quarters. Cognizant follows calendar year accounting.
The revenue performance in the quarter was worse than that of Infosys, TCS and HCLTech. Infosys had reported a 1% dip in revenue in constant currency terms, TCS a 1.7% growth, and HCLTech an over 4% growth.
Both financial services and healthcare – Cognizant’s top verticals – registered revenue decline of 6.6% and 2.7% year-on-year respectively. Quarterly net income, however, increased to $558 million in the quarter ended Dec 2023 from $521 million in the year-ago period as the company’s cost optimisation program NextGen started showing results. The company, which gets the bulk of its revenue from North American and European markets, expects headwinds to continue.