Cognizant has revealed that its revenue rose 2.8 percent to $4.2 billion during the first quarter of 2020.
The number of employees at Cognizant fell to 291,700 in Q1 2020 vs 292,500 in Q4 2019.
Operating margin of Cognizant was 13.7 percent in Q1 2020 compared to 13.1 percent in the year-ago quarter.
Cognizant reported net income of $367 million compared to $441 million.
Cognizant will not be sharing its revenue guidance for 2020 in the wake of the spread of Covid-19 epidemic.
“The pandemic is accelerating the secular trends of core modernization and cloud migration as companies shift to digital business models. These and other related IT trends play directly to Cognizant’s strategy,” Cognizant CEO Brian Humphries said in a statement.
Cognizant’s revenue from Financial Services (34.3 percent of revenues) grew 1 percent. Revenue growth in banking was driven by the contribution of the partnership with three Finnish financial institutions to transform and operate a shared core banking platform and regional banks in North America.
Cognizant’s revenue from Financial Services rose 1 percent to $1.451 billion.
Cognizant’s revenue from Healthcare (28.3 percent of revenues) grew 2.5 percent to $1.194 billion driven by double-digit growth in life sciences, including the contribution of Zenith Technologies, which was acquired in July 2019.
Cognizant’s Products and Resources (22.6 percent of revenues) revenue grew 4.4 percent to $954 million, driven by growth across retail and consumer goods, manufacturing, logistics, energy and utilities.
Cognizant’s Communications, Media and Technology (14.8 percent of revenues) revenue grew 5.2 percent to $626 million, driven by broad-based growth across all the industries.
Cognizant generated first quarter revenue of $3.19 billion (+2.1 percent) from North America, $774 million (+5.4 percent) from Europe, $261 million (+3.2 percent) from Rest of World.