Cognizant Technology Solutions posted revenue of $3.83 billion (+10.6 percent) in the fourth quarter and $14.81 billion (+9.8 percent) in 2017.
Cognizant is targeting revenue of $3.88 billion – $3.92 billion in the first quarter of 2018 and $16 billion – $16.30 billion in 2018, indicating its dominance in the technology outsourcing market and digital practice. The increase in 2018 revenue will be fueled by its acquisitions in 2017.
The US-based Cognizant Technology has reduced its employee base to 260,000 in Q4 2017 as compared with 260,200 in Q4 2016. Cognizant had an employee base of 256,100 in Q3 2017.
Cognizant remained No. 2 in revenue growth, trailing HCL Technologies (13.9 percent) but growing faster than Tata Consultancy Services (9.1 percent), Infosys (8 percent) and Wipro (4.5 percent).
Revenues by segment
Financial Services $1,427 million (+5.4%) or 37.3%
Healthcare $1,125 million (+11.9%) or 29.4%
Products and Resources $782 million (+13.7%) or 20.4%
Communications, Media and Technology $494 million (+19%) or 12.9%
Revenues by geography
North America $2,947 million (+8.5%) or 77%
United Kingdom $287 million (+5.1%) or 7.5%
Rest of Europe $345 million (+31.7%) or 9.0%
Europe $632 million (+18.1%) or +16.5%
Rest of World $249 million (+17.5%) or 6.5%
“Consistent and solid execution throughout 2017, along with continued investments to further accelerate the shift to digital during the year, gives us confidence that we can deliver a strong 2018,” said Francisco D’Souza, chief executive officer of Cognizant.
Cognizant also announced the formation of a new non-profit $100 million foundation to support STEM (Science, Technology, Engineering and Math) and digital education and skills initiatives for U.S. workers and students.
“The way Cognizant is going to market leveraging its Digital Business, Digital Operations and Digital Systems and Technology practices, investing in reskilling its workforce and building its network of onshore and regional centers is helping the company meet demand for applying emerging technologies on top of legacy systems to improve clients’ operations and user/customer experiences,” TBR analyst Stephanie Artigliere said.