Chennai, NFAPost: Cognizant Technology Solutions on Thursday posted a 30% decline in its third quarter (July-September) net profit to $348 million. Its net profit in the corresponding quarter of the last year was $497 million.
The IT company follows a January-December accounting year.
The company’s revenue stood at $4.2 billion, down 0.1% (0.7% in constant currency) including a positive 250 basis points contribution from inorganic growth and a negative 130 basis points impact from the exit of certain non-strategic content services business announced in Q3 2019.
Cognizant’s Digital revenue as a percentage of total revenue was 42% for the third quarter, representing approximately 13% growth YoY. GAAP operating margin was 14.2% compared to 15.7% in the year-ago quarter. Its Quarterly Adjusted Diluted EPS was $0.97 compared to $1.08 in the year-ago quarter.
The company has declared a quarterly cash dividend of $0.22 share on Cognizant Class A common stock for shareholders of record at the close of business on November 19, 2020, with the dividend payable on November 30, 2020.
“Against a challenging demand environment, we continued to strengthen our portfolio, execute our digital strategy and increase our competitiveness,” said Cognizant CEO Brian Humphries.
“Clients are realizing they can distinguish themselves if they embrace disruption and transform. We are committed to making that easy for them. Everything we are doing as a company ― from our strategy, solution portfolio, partnerships, M&A, branding and marketing, and talent ― is focused on being one of the biggest beneficiaries of this new phase in Digital,” he added.
Cognizant expects its Full year 2020 revenue to be at the high end of the previously guided range of approximately $16.7 billion, or a decline of 0.4% in constant currency. Adjusted Diluted EPS in the range of $3.63 – $3.67, an increase from prior guidance of $3.48 – 3.58.