Cognizant posts 17% drop in net profit; Covid-19 to impact Q2 numbers

IT services major Cognizant joined its peers in witnessing the impact of Covid-19 pandemic on its revenues and profitability, as the ongoing crisis shaved off close to $35 million from the company’s top line in the first quarter of this calendar year. The Nasdaq-listed firm, which had earlier withdrawn its revenue guidance for 2020 on the back of business uncertainty, also said that its revenue will be adversely impacted by around $50-70 million in the second quarter (April-June) due to the recent ransomware attack.

Teaneck-based IT major Cognizant posted a decline of 16.78 per cent in its net profit at $367 million for the quarter ended March 31, 2020, as compared to $441 million in the same period a year ago.