25th April 2024 – Cognizant’s revenue growth for the September 2022 quarter was 5.6%, less below the company’s projected increase of 7.5-8.5% due to execution issues. Financial services and healthcare are the two major categories where growth has slowed to low-to-mid single digits, according to a study by brokerage and research company Kotak Securities.
“The business has again lowered its sales growth target for CY2022E from 8.5–9.5% to 7% in c/c. The size difference between Infosys and Cognizant (CTSH) is narrowing to roughly 6% in terms of sales.
The business lost wallet share in important sectors. The memo said, “Not much read-through for other IT services companies from these results.”One of the top providers of professional services in the globe, Cognizant, released its third quarter 2022 financial results earlier this week.
Conclusion
After predicting revenue growth of 8.5–9.5% in the June 2022 quarter and 8.5–11.5% at the start of the year, Cognizant now only predicts revenue growth of 7% in CY2022E. A 100 bps contribution from acquisitions is included in the forecast, which has not altered from the levels mentioned after the June 2022 quarter results.
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