Cognizant has said its fourth-quarter revenue increased 6.8 percent to $5.1 billion, while full-year revenue grew 2.0 percent to $19.7 billion.
Cognizant has generated revenue of $5.932 billion from Health Sciences in 2024 with $1.316 billion from North America, $194 million from Europe and $31 million from the Rest of World.
Cognizant’s first-quarter revenue is expected to be $5.0 – $5.1 billion, indicating growth of 5.6 percent to 7.1 percent. Cognizant’s full-year revenue is expected to be $20.3 – $20.8 billion, reflecting growth of 2.6 percent to 5.1 percent.
There are concerns that Cognizant’s achievement in 2024 and revenue projections in 2025 do not reflect the anticipated boom in the AI (artificial intelligence) market.
The latest Garnter report said IT services will achieve 9 percent growth in 2025 to $1,731.467 billion from $1,588.121 billion with 5.6 percent rise in 2024.
“GenAI is sliding toward the trough of disillusionment which reflects CIOs declining expectations for GenAI, but not their spending on this technology,” John-David Lovelock, Distinguished VP Analyst at Gartner, said in a January note.
Cognizant has generated revenue of $5.753 billion from Financial Services in 2024 with $1.011 billion from North America, $300 million from Europe and $124 million from the Rest of World.
Cognizant has generated revenue of $4.782 billion from Products & Resources in 2024 with $910 million from North America, $301 million from Europe and $84 million from the Rest of World.
Cognizant has generated revenue of $3.269 billion from Communications, Media & Technology in 2024 with $585 million from North America, $144 million from Europe and $82 million from the Rest of World.
Cognizant has generated revenue of $14.698 billion from North America, $3.759 billion from Europe and $1.279 billion from Rest of World.
Cognizant’s operating margin was 14.7 percent.
Cognizant has revealed that its trailing 12-month bookings rose 3 percent to $27.1 billion, driven by 11 percent fourth quarter bookings growth. Cognizant did not reveal the size of its booking from AI customers. During the fourth quarter, Cognizant signed ten large deals with total contract value of $100 million or greater.
“We accelerated investments in our AI-led platforms and added new capabilities with the acquisitions of Thirdera and Belcan, further strengthening and diversifying our portfolio. Our focus on client centricity, agility, and innovation is helping clients unlock the next wave of hyper productivity and enterprise-grade generative AI adoption,” Cognizant CEO Ravi Kumar S said in its earnings report.
Voluntary attrition – Tech Services on a trailing-twelve months basis was 15.9 percent as compared to 13.8 percent for the period ended December 31, 2023. Total headcount as of December 31, 2024 was 336,800.
Baburajan Kizhakedath
