Cognizant Technology Solutions Corporation reported a 38 per cent increase in net profit to $505 million in the first quarter ended March 31, as against $367 million in the corresponding quarter last year. Revenue grew by 4.2 per cent to $4.4 billion, with the digital sector contributing significantly to the growth.
Digital revenue grew by around 15 per cent year-over-year and was 44 per cent of the company’s revenue, up from 39 per cent in the prior-year period.
The US-based software company with a majority of employees in India said that around $700 million was deployed on acquisitions, share repurchases and dividends in the first quarter says a company press release.
“In the first quarter, we successfully executed our strategy of embracing digital, investing in international expansion and repositioning the Cognizant brand. Cloud migration and digital adoption create a significant opportunity for Cognizant in the coming years,” said Brian Humphries, CEO, Cognizant.
“The ongoing humanitarian crisis, especially in India, is deeply concerning. We have made a series of investments to support India in this time of need and continue to prioritize the health and safety of our associates while we serve our clients,” he added.
“Our first-quarter performance reflects solid revenue growth in our digital services and consistent execution of our strategy,” said Jan Siegmund, Chief Financial Officer, “To support our commercial momentum, we are increasing our investments in recruiting and talent.”
Second Quarter and Full Year 2021 Outlook
For the second quarter, revenue is expected to be $4.42-$4.46 billion, or a growth of 10.5-11.5 per cent. This assumes an estimated positive 250 basis points foreign exchange impact. For the year 2021, revenue is expected to be $17.8-$18.1 billion or 7-9 per cent. This assumes an estimated positive 150 basis points foreign exchange impact, the release said.