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 rethink spending on

consultancy services while prioritizing investments in

AI-related projects.

Still, an increase in spending by clients in the

financial services sector helped Cognizant win more large deals

in the fourth quarter than a year earlier, powering its

quarterly revenue above Wall Street expectations.

"In North America, we are seeing an improved pipeline of

opportunities for transformation and modernization projects

across both insurance and select ADRs of banking and financial

services clients," finance chief Jatin Dalal said.

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 analysts' average

estimate of $1.12 per share.

The New Jersey-based company said it expects first-quarter

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

with analysts' average estimate of $5.06 billion.

Cognizant expects its 2025 revenue to be between $20.30

billion and $20.80 billion, lower than estimates of $20.89

billion compiled by LSEG.

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 analysts' average estimate of $4.99 per

share.