Cognizant Reports 22.2% YoY Net Profit Growth in Q2 2024 By CIOTechOutlook Team

Cognizant Reports 22.2% YoY Net Profit Growth in Q2 2024

CIOTechOutlook Team | Friday, 02 August 2024, 02:52 IST

Cognizant Technology Solutions, a professional services firm based in the US, reported a 22.2% increase in net profit to $566 million for the second quarter of June 2024 compared to the previous year. In a consecutive manner, the net income increased by 3.6% from $546 million in the prior quarter.

The technology company listed on the Nasdaq saw its revenue reach $4.85 billion, landing at the upper limit of its projected range. This result was almost the same as the prior year's figure of $4.89 billion, showing a slight decrease of 0.7% year-over-year. Additionally, the revenue was 1.9% higher compared to the previous quarter's $4.76 billion. During the first quarter, the company provided an estimate for second quarter revenue between $4.75 billion and $4.82 billion.

"In the second quarter, we delivered revenue above the high end of our guidance range, expanded adjusted operating margin, and maintained our large deal momentum. Progress against our strategic priorities is opening new opportunities with clients and allowing us to operate with greater agility," said Ravi Kumar S, chief executive officer.

Cognizant, with most of its employees located in India, adheres to the January to December calendar year cycle.

The worldwide IT company raised its 2024 annual revenue forecast to between $19.3 and $19.5 billion, representing a decrease of 0.5% to an increase of 1.0% year over year in constant currency terms. This consists of about 70 basis points of inorganic contribution compared to the previous estimate of "up to approximately 100 basis points."