Cognizant projects revenue above estimates, CFO to retire in 2024

(Reuters) – Cognizant Technology Solutions forecast third-quarter revenue above estimates on Wednesday as more businesses turn to the IT services provider to digitize their operations, sending its shares up more than 6% after the bell.

The company also said CFO Jan Siegmund would retire in early 2024.

The New Jersey-based company expects current-quarter revenue of between $4.89 billion and $4.94 billion, compared with analysts’ estimates of $4.86 billion, according to Refinitiv data.

While enterprise budgets have been tight due to economic uncertainty, businesses are still pressing on with digitization efforts as flagged by Cognizant’s peers including TCS and Accenture.

The company now expects full-year adjusted profit per share in the range of $4.25 to $4.48, compared with an earlier estimate of between $4.11 and $4.34.

“The continued reduction in our voluntary attrition, improved employee engagement and higher customer satisfaction scores reflect the interdependence of our client and employee experience,” said CEO Ravi Kumar S.

Revenue for the second quarter stood at $4.89 billion, slightly above estimates of $4.84 billion.

The company reported adjusted profit of $1.10 per share, compared with estimates of 99 cents.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)