Cognizant Embraces 11 Percent Profit Rise in Q321 Revenue
Cognizant, a US-based technology company, reported an 11 percent increase in profits in common currency to $4.7 billion in the third quarter ended September, as company momentum, particularly in digital products and services, continued to grow. The company's accounting calendar year runs from January to December.
Based in Teaneck, New Jersey, the company expects full-year sales to climb 9.8 percent in constant currency to $18.5 billion in 2021, which would be its greatest annual profit to date, in line with the better end of its previous guidance of $18.4 billion to $18.5 billion.
Financial Services revenue increased 5.1 percent year over year, or 4.3 percent in constant currency, thanks to recently completed acquisitions and revenue growth from our digital banking and insurance services. Clients' sustained focus on cost minimization of supporting their legacy systems and operations was evident in declines in our non-digital services.
Healthcare revenue increased by 10 percent year over year, or 9.8 percent in constant currency. Increased demand for our services among pharmaceutical companies drove revenue growth among our life sciences clients. Increased demand for our integrated software solution aided revenue growth among our healthcare customers.
We are continuing to make significant investments to ensure that Cognizant is well positioned to serve our customers as they embrace electronic small business types,” says the company”, says Brian Humphries, chief government officer.
Revenue from Communications, Media, and Technology increased by 20 percent year over year, or 19.1 percent in constant currency. Recent acquisitions contributed to revenue growth, as did sustained strong demand from technology clients.
As digital bookings continued to climb, the company's digital revenue increased 18 percent year over year and contributed 44 percent of total revenue during the quarter under review. It then moves on to its focus areas of digital engineering, artificial intelligence (AI) and analytics, cloud, and the Internet of Things (IoT).
In the September quarter, Cognizant added 17,000 new employees to its global workforce, bringing its total to 318,400. Since this time last year, the number of employees has increased by around 35,000 people.
In the third quarter, the modified working margin was 15.8 percent, compared to 15.9 percent in the same quarter the previous calendar year.
Over the last three decades, the company has spent $3 billion on strategic mergers and acquisitions, including the acquisitions of TQS Integration and Hunter Technical Assets in the third quarter.
"At a time when the industry is facing unprecedented competition for talent, we attracted a record number of employees to Cognizant and stayed focused on delivering on our client commitments and strategic repositioning. We are continuing to make significant investments to ensure that Cognizant is well positioned to serve our customers as they embrace electronic small business types,” says the company”, says Brian Humphries, chief government officer.