Nasdaq-listed Cognizant Technology Solutions Corp. reported a 12.7% increase in net profit to $577 million for the June quarter, compared with a 9.5% increase in revenue in constant currency from the year-ago period. during the period was $512 million. $4.9 billion. This is the company’s fifth consecutive quarter of revenue growth and the highest quarterly revenue ever. The company follows the calendar year.
In comparison, for the June quarter, Tata Consultancy Services Ltd (TCS) dollar revenue rose 15.5% to $6.8 billion in constant currency from a year ago, while Infosys Ltd grew 21.4% to $4.4 billion in constant currency .
New Jersey-based firm The Teaneck lowered its full-year 2022 revenue growth guidance by 8.5-9.5% in constant currency to $19.7-19.9 billion, guided by 9-11% growth in the previous quarter.
The company’s digital revenue grew approximately 13% annually and contributed 50% to total revenue for the June quarter, which represents a strong demand environment for digital technologies. It continues to focus on its “Digital Battlegrounds” areas of Digital Engineering, Artificial Intelligence (AI) and Analytics, Cloud and Internet of Things (IoT).
Brian Humphries, Cognizant’s chief executive officer, said: “In unprecedented labor market conditions characterized by high labor force and significant wage inflation, we focused on our customer commitments and delivered balanced financial results in the second quarter.” For the company’s continued success, we will continue to invest in our talented employees, our customers and our capabilities.”
Revenue from financial services grew 5.1% in constant currency compared to a year ago, driven by growth in US regional banking customers, strength in the UK and solid performance within insurance. The sale of the Samlink subsidiary, which closed on February 1, 2022, negatively impacted segment revenue growth by approximately 190 basis points.
Healthcare revenue grew 7.6% annually in constant currency driven by digital services among pharmaceutical customers and continued demand for integrated software solutions among our healthcare customers.
Products and resources revenue increased 11.6% year over year in constant currency, partially driven by strength among automotive, logistics, retail and consumer goods clients. Segment growth includes the benefit of acquisitions that were closed in the second quarter of 2021.
Communications, media and technology revenue in constant currency, driven strongly among digital native companies, grew 19.5% from the year-ago period.
Globally, Cognizant’s workforce has grown to over 341,000 amid a highly competitive labor market. The voluntary annual job leave rate increased from 26% to 31% over the past three months, reflecting strong demand for technical talent across the industry.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,