Cognizant Q3 revenue rises 7.4% to $5.4bn

BANGALURU: Cognizant reported revenue of $5.4 billion for the Sept quarter, marking a 7.4% year-on-year rise and a 3.2% sequential increase in dollar terms. In constant currency, revenue grew 6.5%, including a 2.5% contribution from inorganic growth. Sequential growth stood at 2.8%. Cognizant’s strong quarterly performance lifted its shares 6.6% in early Nasdaq trading following the announcement. Buoyed by the results, the company raised its full-year outlook. It now expects revenue growth between 6% and 6.3%, up from the previous 4% to 6% forecast. Operating margin guidance was also raised to around 15.7%, the upper end of its earlier range, reflecting a 40-basis-point expansion. “Over the last two-and-a -half years, we have been investing in transforming ourselves from a traditional systems integrator into an AI builder,” said Cognizant CEO Ravi Kumar. “An AI builder focuses on driving enterprise AI productivity, specialising in AI solutions, and helping organisations realise their AI-led transformation journeys.” Revenue growth was driven by strong performance in the US, which rose 7.8% y-o-y.