IT services company Cognizant has posted a revenue growth of $4.4 billion in the first quarter (January-March) of the calendar year. Its revenue grew 4.2% year-over-year (2.4% in constant currency).
The company posted $4.2 billion revenue in the corresponding quarter of the last year, Cognizant said in a statement.
Cognizant’s Financial Services (33.1% of revenues) revenue grew 0.5% year-over-year, and decreased 1.7% in constant currency, as revenue growth generated by its digital services in both banking and insurance was offset by declining non-digital revenue as its clients continue to optimize the cost of supporting their legacy systems and operations.
The company’s Healthcare (29.3% of revenues) revenue grew 7.9% year-over-year, or 7% in constant currency. Its healthcare revenue benefited from increased demand for its integrated payer software solutions and continued strong demand among its life sciences clients.
Products and Resources (22.7% of revenues) revenue grew 4.6% year-over-year, or 2.4% in constant currency. Revenue among manufacturing, logistics, energy and utilities clients grew double-digits for the fourth consecutive quarter while retail, consumer goods, travel and hospitality clients continued to be adversely affected by the COVID-19 pandemic.
Cognizant CEO Brian Humphries said, “In the first quarter, we successfully executed our strategy of embracing digital, investing in international expansion and repositioning the Cognizant brand.”
“Cloud migration and digital adoption create a significant opportunity for Cognizant in the coming years. The ongoing humanitarian crisis, especially in India, is deeply concerning. We have made a series of investments to support India in this time of need and continue to prioritize the health and safety of our associates while we serve our clients.”
The company has deployed $700 million on acquisitions, share repurchases and dividends in the first quarter. As far as attrition is concerned, the company’s total attrition in the first quarter stood at 21% compared with 19% in the previous quarter. The IT major employs 2,96,500 employees globally.
The company’s second quarter revenue is expected to be $4.42–$4.46 billion, or growth of 10.5-11.5% (8.0-9.0% in CC). This assumes an estimated positive 250 basis points foreign exchange impact, it said.
For Full year 2021, revenue is expected to be $17.8–$18.1 billion, or growth of 7.0-9.0% (5.5-7.5% in CC).