Cognizant reported revenue of $4.2 billion, down 0.1 percent, including a negative 130 basis points impact from the exit of certain content services, during Q3 2020.
Operating margin was 14.2 percent vs. 15.7 percent in the prior year period.
Cognizant said FY2020 revenue is expected to be at the high end of the previously guided range at approximately $16.7 billion, or a decline of 0.4 percent in constant currency.
Cognizant CEO Humphries said: “Clients are realizing they can distinguish themselves if they embrace disruption and transform. We are committed to making that easy for them.”
Performance by Business Segment
Financial Services (34.6 percent of revenues) revenue decreased 1.5 percent, driven by declines in both banking and insurance. Growth in regional banks and capital markets in North America was offset by weakness in select global banking accounts and in Europe.
Healthcare (29.0 percent of revenues) revenue grew 4.8 percent, driven by life sciences. Growth in bio pharmaceutical clients and revenue from our acquisition of Zenith Technologies offset weakness in medical device clients. Within healthcare, performance among payer clients improved.
Products and Resources (21.9 percent of revenues) revenue decreased 4.0 percent, driven by retail, consumer goods, travel and hospitality clients that were particularly adversely affected by the pandemic, partially offset by double-digit constant currency growth in manufacturing, logistics, energy and utilities.
Communications, Media and Technology (14.5 percent of revenues) revenue increased 0.2 percent. Growth within our communications and media clients was more than offset by a negative 920 basis point impact from our 2019 strategic decision to exit certain content-related services. Excluding that impact, Communications, Media and Technology grew approximately 9 percent in constant currency.