Cognizant announced that its revenue rose 3.8 percent to $4.3 billion with operating margin of 14.6 percent (16.8 percent) in the fourth quarter of 2019.
Net income of Cognizant has dropped to $395 million compared to $648 million in the year-ago quarter.
“Our steady progress against key initiatives is increasingly evident in our commercial and financial performance,” said Brian Humphries, chief executive officer of Cognizant.
Cognizant said its revenue increased 4.1 percent to $16.8 billion with operating margin of 14.6 percent (17.4 percent) in 2019.
Cognizant’s revenue from Financial Services, which accounts for 34.3 percent of revenues, grew 1.2 percent, driven primarily by insurance. Growth in banking was stable, driven primarily by the contribution of the partnership with three Finnish financial institutions. This was partially offset by softness with a few of the largest banking and insurance clients.
Cognizant said its revenue from Healthcare, which contributes 28.5 percent of total revenues, grew 1.6 percent — driven by double-digit growth in life sciences, primarily from demand within Digital Operations. This was partially offset by a decline in revenue within healthcare as results were negatively impacted by industry consolidation and the movement of work to a captive at a large North American client.
Cognizant’s Q4 revenue from Products and Resources, which accounts for 22.4 percent of total revenues, grew 8.1 percent, driven by broad-based growth across industries, including retail and consumer goods, manufacturing, logistics, energy and utilities, and travel and hospitality.
Cognizant’s revenue from Communications, Media and Technology, which contributes 14.8 percent of revenues, grew 8 percent, driven by broad-based growth across all the industries in this segment. Revenue growth in technology was negatively impacted by decision to exit certain portions of content services business with Facebook.
Cognizant is expecting revenue growth of 2.8-3.8 percent in the first quarter of 2020 and 2.0-4.0 percent in 2020.
Cognizant has also appointed Vinita Bali to its Board as an independent director. Meanwhile Vice Chairman Francisco D’Souza will leave the Board effective March 31, 2020.
Francisco D’Souza was elected to Cognizant’s Board of Directors in January 2007 and served as vice chairman since June 2018. He co-founded Cognizant in 1994 and served as the CEO from January 2007 through March 2019.