The firm also predicted that because the bulk of its income comes from the US and the industry is now suffering due to the economic crisis, its sales are projected to fall in 2023.
Cognizant has issued sales guidance of 19.2 to 19.6 billion for the entire year. According to stated figures, it indicates a decrease of -1.2 percent to 0.8 percent or an increase of -1 percent to 1 percent in constant currency. The business anticipates revenues of 4.83 to 4.88 billion in the second quarter, down -1.6 percent to -0.6 percent in constant currency.
Lower administrative expenses and greater other revenue contributed to Cognizant’s first quarter’s 3 percent rise in net profit to 580 million. Revenue for the three months that ended in March decreased by 0.3 percent from the prior year to 4.81 billion, exceeding 4.74 billion in forecasts on the stock market. Sequentially, revenue decreased by 0.7 percent while profit increased by 11.3 percent.
At 14.6 percent, Cognizant’s margins are among the lowest. For the entire year, the company projects an adjusted operating margin of 14.2-14.7 percent.
In the first quarter of FY23, which was the first quarter that new CEO Ravi Kumar S presided over for the majority of the period, it outperformed analyst estimates. After former CEO Brian Humphries’ “involuntary termination” on January 12, he took over as CEO. The change in the company’s leadership and chairman of the board coincides with a challenging period for the sector, which is dealing with numerous challenges.
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