Cognizant reported 14.6 percent increase in revenue at $4.6 billion – powered by 20 percent rise in digital income – during the second quarter of 2021.
Cognizant CEO Brian Humphries said: “Through targeted investments, we’ve been shifting our portfolio to faster-growing market segments while extending our capabilities and partnerships to help clients build modern businesses.”
Performance by Business Segment
Financial Services (32.8 percent of revenues) revenue grew 7.6 percent, which included the benefit of recently completed acquisitions and growth in digital revenue. Revenue declines related to its non-digital services continued to pressure results as its clients optimize the cost of supporting their legacy systems and operations.
Healthcare (28.9 percent of revenues) revenue grew 14.5 percent. Growth was driven in part by its integrated software solutions for its healthcare clients and broad-based demand from its life sciences customers.
Products and Resources (23.0 percent of revenues) revenue grew 21.7 percent, which included the benefit of recently completed acquisitions and was driven by manufacturing, logistics, energy and utilities clients. Growth among retail, consumer goods, travel and hospitality clients reflects improving demand for services despite continued elevated uncertainty related to the pandemic.
Communications, Media and Technology (15.3 percent of revenues) revenue rose 21.2 percent. Revenue growth included the benefit of recently completed acquisitions and increased demand from technology clients. The impact from exit of certain content-related services negatively impacted segment growth by approximately 190 basis points.
Cognizant said revenue growth across all segments reflects the impact on 2020 revenues from the pandemic and the April 2020 ransomware attack.
Third quarter revenue is expected to be $4.69-$4.74 billion, or growth of 10.6-11.6 percent, Cognizant said.
Full year 2021 revenue is expected to be $18.4-$18.5 billion, Cognizant said.