Q2 Results: Cognizant’s Profit Falls To $456 Million
IT services firm Cognizant’s second-quarter net profit fell 2.97 percent to $456 million.
The company had reported a net profit of $470 million a year ago, Cognizant said in a statement. Revenue rose to $4 billion in the April-June period from $3.6 billion a year ago.
The U.S.-based company follows January-December as its financial year.
The company expects its revenue to be in the range of $4.06-4.10 billion for the third quarter. Its full year revenue is expected to be between $16.05 billion and $16.30 billion.
“As our second-quarter results confirm, we’re making a solid progress on our plan to accelerate our shift to digital services and solutions,” Cognizant Chief Executive Officer and Vice-Chairman Francisco D’Souza said. The company is confident of its ability to invest for growth and achieve its financial targets, he said.
“Year-over-year non-GAAP (generally accepted accounting principles) operating margin expansion reflects strong operational execution and positions us well to absorb planned investments in the second half of the year,” Chief Financial Officer Karen McLoughlin said.
The company, which has a significant portion of its headcount based in India, added 7,500 employees (net) in the June quarter.