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Cognizant closes Q3 with $4.9 billion in revenue to acquire OneSource (Ld)

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Nasdaq-listed Cognizant Technology Solutions (Cognizant) closed the third quarter with a 2.4 percent revenue growth.



According to Cognizant, revenue for the third quarter increased from about $4.7 billion in the third quarter of 2021 to about $4.9 billion.

The company follows the calendar year as the financial year.

Earnings per share were $1.17 ($1.06 Q32021).

“Revenues and bookings were below our expectations as company-specific fulfillment challenges were exacerbated by the impact of an uncertain macroeconomic background,” said Brian HumphriesDirector.

“We are confident that the steps we are taking will return the company to accelerated growth in the medium to long term,” he added.

According to Cognizant, financial services revenues declined 1.5 percent year-over-year, but grew 1.6 percent in constant currency.

Growth was driven by digital services at UK public sector and insurance customers. The growth was offset by 180 basis points of negative impact related to the previously announced sale of its subsidiary Samlink (completed on February 1, 2022), the company said.

health sciences revenue grew 3.8 percent year-over-year, or 5.5 percent in constant currency. Growth was driven by digital services at pharmaceutical and healthcare payer customers.

Product and asset sales grew 3.7 percent year-over-year, or 8.2 percent in constant currency, thanks to digital services for customers in logistics, automotive, consumer goods, and travel and hospitality.

communication, Media and technology Revenue grew six percent year-over-year, or 10.4 percent in constant currency, driven by the strength of digital native businesses, Cognizant said.

The total number of employees came to 3,49,400 after adding 8,100 employees in the past quarter.

Voluntary churn on an annual basis was 29 percent, the company said.

Turning to its revenue forecast for the year, Cognizant said the fourth quarter is expected to be $4.72-$4.77 billion.

Full year 2022 revenue is expected to be approximately $19.3 billion.

Cognizant also said it has agreed to acquire the professional services and application management practices of the US-based A source.

Once the deal closes, Cognizant will add 400 employees to its portfolio.

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