Cognizant, a global technology solutions and services company, has announced its financial results for the third quarter of 2023, highlighting steady revenue growth and optimistic bookings.
Cognizant reported a year-over-year increase in revenue, with total earnings reaching $4.9 billion during Q3 2023, marking a 0.8 percent rise. The revenue breakdown by business segment is as follows:
Financial Services: $1.475 billion (down 3 percent)
Health Sciences: $1.405 billion (nil growth)
Products and Resources: $1.170 billion (up 1.9 percent)
Communications, Media and Technology: $847 million (up 8.2 percent)
Looking ahead, Cognizant anticipates that its fourth-quarter revenue will be in the range of $4.69 to $4.82 billion, reflecting a decline of 3.1 percent to 0.3 percent. For the full year of 2023, the company expects revenue to fall to within the range of $19.3 to $19.4 billion, which represents a decline of 0.7 percent to flat year-on-year.
Ravi Kumar S, Chief Executive Officer of Cognizant, expressed the company’s commitment to enhancing its capabilities, stating, “We are investing to put Cognizant in the best position to serve clients as they strive to reduce costs, digitally transform their businesses, and embrace generative AI.”
The company reported significant growth in bookings during the third quarter, with a year-over-year increase of 9 percent. On a trailing-twelve-month basis, bookings saw a substantial 16 percent year-over-year growth, reaching $26.9 billion, representing a book-to-bill ratio of approximately 1.4x. These figures indicate a robust demand for Cognizant’s services.
In terms of employee metrics, Cognizant’s headcount at the end of the third quarter stood at 346,600, marking an increase of 1,000 from the second quarter of 2023, yet a decrease of 2,800 from the third quarter of the previous year. Notably, voluntary attrition in Tech Services, on a trailing-twelve-month basis, declined to 16.2 percent from 19.9 percent in Q2 2023 and a significant 29.2 percent in Q3 2022, suggesting improved employee retention.
Cognizant’s performance in Q3 2023 reflects its strategic investments and resilience in the face of market dynamics, as it continues to serve a diverse range of clients seeking cost-effective solutions and digital transformation services.