Cognizant Sees 22% Profit Surge, Tweaks 2024 Revenue Guidance

Cognizant Technology Solutions reported a 22% rise in net profit for Q2 2024, reaching $566M. The company adjusted its 2024 revenue guidance to $19.3-$19.5B, implying a slight change from previous estimates. Despite an 8,100 reduction in headcount, Cognizant sees improved revenue momentum and operational excellence.

Cognizant Technology Solutions has reported a 22 percent increase in consolidated net profit for the June quarter, reaching USD 566 million, surpassing estimates. The IT giant has also updated its revenue guidance for the full year 2024.

The company anticipates full-year revenue to be between USD 19.3 billion and USD 19.5 billion, representing a possible decline of up to 0.5 percent or an increase of up to 1 percent. This outlook factors in an approximate 70 basis points of inorganic contribution.

Earlier, Cognizant had projected 2024 revenue in the range of USD 18.9 billion to USD 19.7 billion, indicating a decline of 2.2 percent to growth of 1.8 percent, or 2 percent in constant currency terms. Announcing the Q2 2024 results, Cognizant's top brass stated the company is entering the third quarter with improved revenue momentum.

The net profit of USD 566 million for the June quarter marks a 22.2 percent increase from the same period last year. While headquartered in New Jersey, Cognizant has a significant workforce in India and posted Q2 2024 revenue at approximately USD 4.9 billion, down 0.7 percent year on year.

CEO Ravi Kumar S emphasized that the company's strategic progress is unlocking new client opportunities and enhancing operational agility. CFO Jatin Dalal noted that sequential revenue growth of 2.1 percent—driven by financial services and health sciences—was the highest in two years, underscoring the company's strengthened revenue momentum as it enters Q3.

Despite the positive financial performance, Cognizant's overall headcount fell by 8,100 from Q1 2024, standing at 336,300 by the end of the second quarter, a decrease of 9,300 from Q2 2023.

(With inputs from agencies.)