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View All NewsCognizant fourth-quarter revenue rises 4%; net income falls
Global IT services giant Cognizant Technology Solutions Corp. (NASDAQ: CTSH) reported Wednesday that fourth-quarter revenue rose 3.8%; the increase was 4.2% when measured in constant currency. However, fourth-quarter net income fell 39.0%, and the Teaneck, New Jersey-based firm reported $101 million in restructuring charges in the fourth quarter.
| (US$ millions) | Q4 2019 | Q4 2018 | % change | % constant currency |
| Revenue | $4,284 | $4,129 | 3.8% | 4.2% |
| Net income | $395 | $648 | -39.0% |
Cognizant’s revenue was up 3.1% in North America, its largest market. It also posted revenue growth in other geographies.
Revenue by geography
| (US$ millions) | Q4 2019 | % change | % constant currency |
| North America | $3,241 | 3.1% | 3.1% |
| UK | $337 | 2.1% | 2.7% |
| Continental Europe | $429 | 4.6% | 7.4% |
| Rest of world | $277 | 13.1% | 14.5% |
The company also reported that Francisco D’Souza will step down from its board on March 31 and that Vinita Bali will join the board effective Feb. 24. Bali was most recently managing director and CEO of Britannia Industries, an India-based food company. She had also held executive roles at The Coca-Cola Co.
Full-year results
| (US$ millions) | FY 2019 | FY 2018 | % change |
| Revenue | $16,783 | $16,125 | 4.1% |
| Net income | $395 | $648 | -39.0% |
Guidance
Cognizant expects first-quarter revenue to be up between 2.8% and 3.8% in constant currency.
Share price and market cap
Shares in Cognizant were up 8.86% to $70.73 as of 12:28 p.m. Eastern time; the company had a market cap of $35.58 billion, according to FT.com.