Cognizant, the leading professional services company, has revealed its financial performance and main achievements during second quarter 2024.
Cognizant has reported revenue of $4.85 billion (down 0.7 percent) during April-June 2024.
SEGMENT
$1,447 million (down 1.1 percent) from Financial Services
$1,461 million (up 1.5 percent) from Health Sciences
$1,126 million (down 4.3 percent) from Products and Resources
$816 million (up 1.2 percent) from Communications, Media and Technology
GEOGRAPHIES
$3,620 million (up 0.9 percent) from North America
$444 million (down 6.1 percent) from United Kingdom
$914 million (down 5.5 percent) from Europe
$316 million (down 4.2 percent) from Rest of World
“Progress against our strategic priorities is opening new opportunities with clients and allowing us to operate with greater agility,” said Ravi Kumar S, Chief Executive Officer of Cognizant.
Bookings
Cognizant said bookings in the second quarter increased 5 percent. On a trailing-twelve-month basis, bookings declined 1 percent to $26.2 billion, which represented a book-to-bill of approximately 1.4x.
IT services spending is projected to grow 7.1 percent in 2024 to $1,503.69 billion as compared with Gartner’s previous forecast of 9.7 percent, due in part to slower spending across subsegments that include consulting and business process services.
“The change fatigue in CIOs that we saw at the start of the year has now abated and the contract backlogs going back to the third quarter of 2023 are being cleared. We expect to see a larger rush towards the end of the year to make up for the slow start,” John-David Lovelock, Distinguished VP Analyst at Gartner, said.
Employees
Voluntary attrition – Tech Services on a trailing-twelve months basis was 13.6 percent as compared to 19.9 percent for the period ended June 30, 2023. Cognizant has revealed that total headcount at the end of the second quarter was 336,300, a decrease of 8,100 from Q1 2024 and a decrease of 9,300 from Q2 2023.
Cognizant said third quarter revenue is expected to be $4.89 – $4.96 billion, a decline of 0.2 percent to an increase of 1.3 percent, or flat to an increase of 1.5 percent in constant currency.
Full-year 2024 revenue is expected to be $19.3 – $19.5 billion, a decline of 0.5 percent to an increase of 1.0 percent as reported and on a constant currency basis. This assumes approximately 70 basis points of inorganic contribution.
Baburajan Kizhakedath
