Cognizant Reports Highest Quarterly Revenue, Attrition Falls
Cognizant’s quarterly revenue jumped to the highest, led by digital and financial services, and attrition fell.
Cognizant Technology Solutions’ quarterly revenue jumped to the highest, led by digital and financial services, and attrition fell.
Revenue of the information technology services and consulting company rose 14.2% year-over-year to $4.8 billion in the three months ended December. Revenue in constant currency increased 14.5%.
Digital revenue, accounting for 45% of the total revenue, rose 20% to $2.16 billion.
Revenue from financial services, accounting for 33.33% of the total revenue, rose 19% over the year earlier to $1.55 billion.
Products and resources revenue rose 18% year-on-year.
Communications, media and technology segment revenue increased 13%.
Europe contributed the most to revenue across geographies, with a 35.5% contribution. North America accounted for 9% of revenue, while the rest of the world constituted 25.7%.
The company forecasted 10-11% revenue growth for the quarter ended March. It pegged the full-year revenue growth at 8.5-11.5% in constant currency.
Net income rose 80% year-on-year to $576 million, beating estimates.
The company’s voluntary annualized attrition fell to 31% from 33% as of September.
Cognizant added 12,200 employees in the reported quarter and 41,100 in 2021, with a record 33,000 new college graduate hires in India.
Cash flow from operations stood at $825 million, while free cash flow was $760 million.
It boosted quarterly dividend to 27 cents per share from 24 cents.
With $2.7 billion of cash and short-term investments and free cash flow in excess of 100% of net income, we are well-positioned to execute our balanced capital allocation framework, including the third consecutive annual increase of the dividend.Jan Siegmund, Chief Financial Officer, Cognizant Technology Solutions
