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View All NewsCognizant Q3 revenue increases 12%; net income up 56%
Third-quarter revenue rose 11.0% year over year on a constant currency basis at IT services giant Cognizant Technology Solutions Corp. (NASDAQ: CTSH). The increase was 11.8% on a reported basis. Net income rose 56.3%.
“While the industry faces an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and stayed focused on delivering against our client commitments and our strategic repositioning,” CEO Brian Humphries said.
| (US$ millions) | Q3 2021 | Q3 2020 | % change | % constant currency |
| Revenue | $4,744 | $4,243 | 11.8% | 11.0% |
| Net income | $544 | $348 | 56.3% |
The fastest growth took place in Cognizant’s “communications, media and technology” industry vertical amid recently completed acquisitions and strong demand from technology clients.
In “products and resources,” the second fastest-growing industry vertical, Cognizant noted improved demand from retail, consumer goods, travel and hospitality clients.
Revenue by industry vertical
| (US$ millions) | Q3 2021 | % change | % constant currency |
| Financial services | $1,544 | 5.1% | 4.3% |
| Healthcare | $1,354 | 10.0% | 9.8% |
| Products and resources | $1,107 | 19.4% | 18.1% |
| Communication, media and technology | $739 | 20.0% | 19.1% |
Revenue by geography
| (US$ millions) | Q3 2021 | % change | % constant currency |
| North America | $3,486 | 9.7% | 9.5% |
| UK | $430 | 24.6% | 18.8% |
| Continental Europe | $484 | 10.8% | 9.6% |
| Rest of world | $344 | 22.0% | 21.0% |
Guidance
Cognizant forecast fourth-quarter revenue to be up between 13.5% and 14.5%, or between 13.3% and 14.3% in constant currency.
Full-year revenue is expected to be up 11.1%, or 9.8% on a constant currency basis.
Share price and market cap
Shares in Cognizant were down 0.46% to $77.35 as of 12:43 p.m. Eastern time; they were 6.50% below their 52-week high, according to FT.com. The company had a market cap of $40.84 billion.