Cognizant Q2 net profit down 19% YoY; company retains 2023 revenue guidance

US-based software exporter Cognizant’s net profit fell 19% on-year in the second quarter to $463 million, dragged down by costs related to its two-year ‘NextGen’ restructuring programme, amidst a tapering off in discretionary spends by clients worried about the macroeconomic slowdown.

The company’s revenue declined 0.4% year-on-year to $4.89 billion for the three-month period ended June. It was marginally above street estimates of $4.81 billion. But Cognizant reaffirmed its full-year guidance of decline of 1% to a revenue growth of 1% for the year in constant currency, or excluding exchange fluctuations, on strong deal bookings. Revenue is expected to be in the range of $19.2 billion to $19.6 billion.