Feb 5 (Reuters) -

Cognizant Technology Solutions ( CTSH ) forecast annual

revenue below estimates on Wednesday, as uncertainty about the

path of future interest rate cuts forces companies to temper

spending on IT services and consultancy.

Persistent high capital costs continue to strain IT

spending, prompting enterprises to cut back on consultancy

services while prioritizing investments in AI-related projects.

Cognizant's shares fell 1.2% in extended trading.

Uncertainty around rate cuts by the U.S. Federal Reserve

this year is exacerbated by President Donald Trump's changes to

immigration policies, tariffs and other initiatives, forcing

companies to limit spending.

The company's fourth-quarter revenue stood at $5.08 billion,

compared to analysts' expectations of $5.07 billion, according

to data compiled by LSEG.

Cognizant's adjusted profit came in at $1.21 per share in

the quarter ended December 31, compared with estimates of $1.12

per share.

The New Jersey-based company expects first-quarter revenue

in the range of $5 billion to $5.1 billion, compared to

analysts' estimates of $5.06 billion.

Cognizant expects its 2025 revenue to be between $20.3

billion and $20.8 billion, lower than estimates of $20.89

billion.

It projected 2025 adjusted earnings between $4.90 per share

and $5.06 per share. The midpoint of the forecast is $4.98 per

share, compared with estimates of $4.99 per share.