Cognizant Technology Solutions posted its earnings for the April to June 2023 period in which its revenue saw a sequential jump of two percent to $4.9 billion. Though the revenue has come in on the upper range of the guidance the firm had given earlier, on a year-on-year basis it has fallen 0.4 percent while constant currency revenue also is down 0.1 percent YoY.

The tech giant has projected third-quarter revenue at $4.89-4.94 billion, which is up 0.6-1.6 percent on a year-on-year basis. This is higher compared to the estimate of $4.86 billion as Refinitiv data cited by Reuters suggest.

Cognizant witnessed a bookings growth of 17 percent year-over-year with record trailing 12-month bookings of $26.4 billion. The firm’s adjusted operating margin came at 14.2 percent, marginally lower than 14.6 percent in the previous quarter.

The IT services firm saw its attrition rate ease to 19.9 percent from 23.1 percent in the March 2023 ended quarter. In the June 2022 quarter, the attrition rate was much higher at 31.1 percent.

Ravi Kumar S, Cognizant Chief Executive Officer, said, "We maintained our commercial momentum, with strong bookings growth of 17 percent year over year, including roughly a third of in-quarter bookings from large deals.”

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He added that the firm’s initial investment in the Cognizant Neuro AI platform has helped drive more than 100 early engagements as clients embrace generative AI.

He also said that the continued reduction in voluntary attrition, improved employee engagement and higher customer satisfaction scores reflect the interdependence of our client and employee experience.

Cognizant also announced that its Chief Financial Office (CFO) Jan Siegmund would retire in early 2024.

Meanwhile, The company now expects full-year adjusted profit per share in the range of $4.25 to $4.48, compared with an earlier estimate of between $4.11 and $4.34.

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