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IT services firm Cognizant profit beats estimates

Cognizant Technology Solutions Corp topped analysts' estimates for quarterly profit on Thursday, as clients in the healthcare and financial industries spent more for its services.

twitter-logo Reuters        Last Updated: August 2, 2018  | 17:26 IST
IT services firm Cognizant profit beats estimates

Cognizant Technology Solutions Corp topped analysts' estimates for quarterly profit on Thursday, as clients in the healthcare and financial industries spent more for its services.

The company has been investing heavily in its digital services amid a tight cap on spending from its clients. Cognizant gets the largest chunk of its revenue from financial services and healthcare clients.

Revenue from its financial services sector, which accounts for more than a third of its total revenue, rose 4.5 percent, while revenue from healthcare services rose 10.1 percent in the second quarter.

Cognizant said it expected current-quarter revenue to be between $4.06 billion to $4.10 billion, below analysts' average estimate of $4.12 billion, according to Thomson Reuters.

The Teaneck, New Jersey-based company said net income fell to $456 million, or 78 cents per share, in the second quarter ended June 30 from $470 million, or 80 cents per share, a year earlier.

Excluding items, the company earned $1.19 per share.

Revenue rose to $4.01 billion from $3.67 billion.

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