Cognizant Q1 Profit Down 5.8% to $546 Million | Revenue Guidance Unchanged

New Delhi, May 2 (PTI) Nasdaq-listed IT services company Cognizant has reported a 5.8 per cent year-on-year decline in consolidated net profit for the March quarter to USD 546 million.

The company in a release said its revenue guidance for the full year 2024 is "unchanged" in the band of 2 per cent decline to a 2 per cent growth in constant currency.

For the first quarter ended March 31, 2024 (the company follows a calendar year cycle), the revenue came in at USD 4.76 billion, a decline of one per cent over the same period previous year.

"During the first quarter, we delivered revenue above the high-end of our guidance range and continued to make progress against our strategic priorities," Cognizant CEO Ravi Kumar S said in a release.

"We have built upon our large deal momentum of 2023, signing eight deals during the quarter, each with a total contract value of at least USD 100 million.

"As our clients navigate an uncertain economic environment, we are adapting to the market dynamics by helping them achieve operational efficiencies, supporting their innovation agendas, and preparing them for AI-driven transformation across their businesses," he said.

Cognizant said the 2024 revenue guidance remains unchanged at (2 per cent) to 2 per cent in constant currency.

"Full-year 2024 revenue is expected to be USD 18.9-19.7 billion, a decline of 2.2 per cent to growth of 1.8 per cent as reported, or a decline of 2 per cent to growth of 2 per cent in constant currency. This assumes up to 100 basis points of inorganic contribution," the release said.

Total headcount at the end of the first quarter was 344,400, a decrease of 3,300 from Q4 2023 and a decrease of 7,100 from Q1 2023.