Revenue was within the guided range increasing by 6.8% to $5.08 billion for the October to December quarter helped by its two acquisitions last year. The revenue grew $4.76 billion in the same quarter a year ago. In Q3, the company had guided revenue to between 5.1% and 7.1% and $5.0-5.1 billion for Q4.
For the full year ending December, profit grew 5.3% to $2.2 billion from $2.1 billion in FY23, while revenue grew 2% year-on-year (YoY) and 1.9% in constant currency (cc) terms to $19.7 billion from $19.3 billion in FY23.
Cognizant follows the calendar year.
Revenue continued to be supported by Health Sciences vertical which grew 4.5% while financial services continued to decline by 1.1% in cc terms.
“We exited the year with momentum — closing a record 29 large deals during the year — highlighting the effectiveness of our strategy. In 2024, we accelerated investments in our AI-led platforms and added new capabilities with the acquisitions of Thirdera and Belcan, further strengthening and diversifying our portfolio,” said Ravi Kumar S, chief executive officer at Cognizant.
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GuidanceThe Nasdaq-listed IT company raised its annual guidance projected in the range $20.3-20.8 billion, rising 3.5% to 6.0% YoY in constant currency (cc) terms. Guidance for Q1 continued to be the same as previous quarter’s projections in absolute terms to be in the $5.0-5.1 billion range. This translates into a growth up by 6.5% to 8.0% YoY in cc terms.
This is higher in percentage terms than what the company had guided in Q3 which was in the 1.4% -1.9% for the full year and last year’s outlook was in the range of -2% to 2% in CC terms.
“We are getting some discretionary spend back, and therefore the volume or the texture of growth will be slightly different for 2025, where you will see both the short-end work as well as the volumes which are being added by the large contracts of large deals,” said chief financial officer Jatin Dalal told analysts after declaring the Q4 results.
