Cognizant revenue up 10.3% to $3.91 bn in first quarter

Cognizant said its quarterly revenue rose 10.3 percent to $3.91 billion the first quarter of 2018 from $3.55 billion in the first quarter of 2017.

Cognizant said the company’s digital revenue grew ~3X company average in Q1 2018. Cognizant Digital
The IT services company posted net income of $520 million, or $0.88 per diluted share in Q1 2018, compared to $557 million, or $0.92 per diluted share, in the first quarter of 2017. The company’s operating margin was 17.7 percent.

Francisco D’Souza, chief executive officer of Cognizant said the tech outsourcing company has built the capabilities and scale to help clients digitize their offerings, create personalized customer experiences, instrument their operations, and modernize their IT infrastructure.

Cognizant has increased the number of employees to 261,400 in March quarter of 2018 from 261,200 in December quarter of 2017.

Cognizant generated 76 percent revenue from North America, 17.5 percent from Europe and the balance 6.5 percent from Asia Pacific, Middle East, Africa, Latin America, etc.

Cognizant said its 37.3 percent revenue came from financial services, 28.7 percent from healthcare, 21 percent from products and resources and 13 percent from media, telecom and technology segments.

Cognizant said its first quarter revenue reached $1,461 million (+6.2 percent) from Financial Services, $1,121 million (+11.8 percent) from healthcare, $821 million (+11.4 percent) Products and Resources and $509 million (+18.4 percent) from Communications, Media and Technology.

Cognizant said 6.2 percent increase in financial services revenue was led by growth in insurance led by large strategic deals; Growth in mid-tier banking clients and digital services, offset by pressure on legacy services.

11.8 percent increase in healthcare sector revenue was consistent demand across payer clients, with increasing interest in our digital, analytics, cloud, and virtualization solutions

11.4 percent increase in revenue in Products and Resources segment was due to strong growth from our manufacturing and logistics clients from our emphasis on leading with digital offerings, which offset sluggish growth in retail.

The tech outsourcing company said Communications, Media and Technology revenue rose 18.4 percent due to continued solid growth across all of the sectors, with an expansion of creating and curating digital content.

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