Cognizant sees quarterly revenue above estimates on strong enterprise demand
FILE PHOTO: Figurines with computers and smartphones are seen in front of Cognizant logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
IT consulting company Cognizant Technology forecast third-quarter revenue above Wall Street expectations on Wednesday, owing to strong spending from customers looking to integrate artificial intelligence into their platforms.
Cognizant's services have seen strong uptake from enterprises looking to automate processes and shift workloads to the cloud as they adopt AI in the hopes of boosting productivity and optimizing costs.
"Our investments in talent, platforms and AI infrastructure drove our fourth-straight quarter of organic year-over-year revenue growth," said Cognizant CEO Ravi Kumar S.
The company forecast third-quarter revenue between $5.27 billion and $5.35 billion, compared with analysts' expectations of $5.27 billion, according to data compiled by LSEG.
It reported revenue of $5.25 billion in the second quarter, beating estimates of $5.19 billion.
Cognizant reported earnings per share of $1.31 in the quarter ended June 30, compared with a profit of $1.14 per share a year ago.
