Cognizant sees 86.5% profit growth from last year
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Cognizant sees 86.5% profit growth from last year

Cognizant Technology Solutions Corporation, the I.T. firm and digital consultancy, reported second quarter results last week that saw it make strong gains on the previous year. Revenue for the quarter stood at $3.67 billion, an 8.9% rise from the year-ago quarter, while profit surged to $470 million, a phenomenal 86.5% rise from the same period a year ago.

Cognizant’s share price is up 27% so far in 2017

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SOURCE: Yahoo Finance

Francisco D’Souza, the company’s CEO, said:

"Cognizant delivered strong second-quarter results, which reflect our continued progress in helping clients achieve the value of digitizing their entire enterprises, or what we call being digital at scale. We remain dedicated to accelerating our shift to digital services and solutions as we continue to invest in our core business and execute our margin improvement and capital return programs."

The company also revised the lower end of its guidance for the full year, from $14.56 billion - $14.84 billion to $14.7 billion - $14.84 billion. This implies a 9% or 10% growth in revenue for the year.

Karen McLoughlin, the company’s chief financial officer, added:

"Our second quarter results and improved full year outlook demonstrate solid execution in our plan to drive sustainable revenue growth while increasing margins. Our strong balance sheet and cash flows continue to support both our capital return program and our investments in the business to drive future growth."

Disclosure

Dominion holds Cognizant Technology Solutions Corporation in its Global Trends Managed Fund. 


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