Cognizant Reports Highest Quarterly Revenue, Attrition Falls

A Cognizant Ltd. building in Pune, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)

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