Cognizant reported revenue of $4.11 billion (+5.1 percent), net income of $441 million and operating margin of 13.1 percent during the first quarter of 2019.
Cognizant has generated revenue of $1.436 billion (–1.7 percent) from financial services, $1.165 billion (+3.9 percent) from healthcare, $914 million (+11.3 percent) from products and resources and $595 million from (+16.9 percent) from communications, media and technology business areas.
Cognizant has generated revenue of $3.123 billion (+5 percent) from North America, $329 (+6.1 percent) from UK, $405 million (+8.3 percent) from Rest of Europe and $253 million from Rest of World.
The number of employees at Cognizant increased to 285,800 in the first quarter of 2019 from 261,400 in the first quarter of 2018.
Cognizant announced the appointment of Brian Humphries as the new CEO in February. Brian Humphries joined Cognizant from Vodafone Group.
“Cognizant’s growth and performance leaves room for improvement,” said Brian Humphries, chief executive officer of Cognizant.
Cognizant CFO Karen McLoughlin said the IT services company noticed deterioration in the performance in the second half of the quarter which led to a slower-than-expected revenue of $4.11 billion in the first quarter.
Digital is the most significant driver of the growth and now accounts for over one-third of the total revenue.
Cognizant has appointed Malcolm Frank as the new president of Cognizant Digital Business for sharpening the focus and accelerating the growth in digital business.
Prasad Chintamaneni, president of Global Industries and Consulting, will assume the direct management of the banking business on an interim basis. Banking and financial services represents 35 percent of Cognizant’s annual revenue.
Cognizant has announced the appointment of Frank D’Souza, the earlier CEO, into the role of vice chairman at the end of June. Earlier, Cognizant also revealed the resignation of Raj Mehta, president.
Cognizant’s financial services (34.9 percent of revenues) revenue fell 1.7 percent — primarily impacted by softness in business with a few of largest banking clients and several insurance and North American regional banking clients.
Cognizant’s healthcare (28.3 percent of revenues) revenue grew 3.9 percent — impacted by industry consolidation as well as the accelerated movement of work to a captive at a large North American client.
Cognizant’s Products and Resources (22.2 percent of revenues) revenue grew 11.3 percent, driven by double digit growth across key industries including retail and consumer goods, travel and hospitality, and manufacturing, logistics, energy and utilities.
Cognizant’s Communications, Media and Technology (14.5 percent of revenues) revenue grew 16.9 percent, led by growth among technology clients.
Cognizant said it is expecting revenue growth of 3.9-4.9 percent in second quarter and 3.6-5.1 percent in 2019 – reflecting the under-performance in Q1 and expectations of slower growth in financial services and healthcare for the remainder of 2019.