Cognizant expects revenue to dip 2% in 2020 amid Covid-19 crisis

IT services major Cognizant said it was expecting its revenues in 2020 to see a dip of 0.5-2 per cent (on constant currency basis), even though the Nasdaq-listed firm witnessed 14 per cent jump in order bookings in the first half of the year on a year-on-year (YoY) basis. With the world staring down the barrel of a Covid-19 pandemic, company has suspended giving revenue guidance, like its larger Indian peers — Infosys and Wipro.

In the June quarter, Cognizant saw its net profit decline 29 per cent at $361 million, compared to $509 million, while it fell 1.63 per cent sequentially. The revenue for the quarter saw a decline of 3.4 per cent at $4 billion on a YoY basis, primarily ow­ing to the exit from the content service business and the impact of the ransomware attack. In sequential terms, net profit declined 5.21 per cent.