Cognizant cuts revenue forecast, flags attrition impact on business

Unlike its peers, Nasdaq-listed IT services firm Cognizant continues to see attrition that is impacting operations. The company, in its Q3 results report, guided for a decline in Q4 and full-year revenue.

The company’s Q4 revenue guidance is a decline of 0.2 per cent to 1.2 per cent (growth of 2-3 per cent in constant currency). This means that its full year revenue guidance has also come down. The company now expects its FY22 guidance to be 7 per cent in constant currency from the earlier 8.5 per cent to 9.5 per cent.

Q3 revenue came in at $4.9 billion, a growth of 5.6 per cent in constant currency terms. This was lower than expected and met the lower end of the company’s own Q3 guidance. Cognizant has guided for a revenue of $4.98-$5.03 billion.