by Cognizant Technology Solutions Corp. (NASDAQ: CTSH) reported its second-quarter results on Tuesday, missing analyst expectations on the bottom line. The company’s net profit fell 19% year-over-year to $463 million, or $1.08 per share, compared to $577 million, or $1.34 per share, in the year-ago quarter.
The company’s revenue rose 10.4% year-over-year to $12.2 billion but missed analyst expectations of $12.3 billion.
Cognizant’s CEO, Brian Humphries, attributed the company’s lower profit to higher costs, including investments in its digital transformation initiatives. However, he said that the company is “confident” in its long-term growth prospects.
“We are executing on our strategy and making good progress against our goals,” said Humphries. “We are investing in our people, our capabilities, and our digital transformation initiatives. We are confident in our long-term growth prospects.”
Cognizant’s guidance for the full year 2023 remains unchanged. The company expects revenue to grow between 10% and 12% year-over-year, and earnings per share to be between $4.80 and $5.00.
Here are some additional details about the story:
- Cognizant’s net profit fell 19% year-over-year.
- The company’s revenue rose 10.4% year-over-year.
- Cognizant’s guidance for the full year 2023 remains unchanged.
