Daily News
View All NewsCognizant revenue down 3.5% amid Covid-19; names new CFO
Cognizant Technology Solutions Corp. (NASDAQ: CTSH) reported revenue fell 3.5% in the second quarter; the decline was 2.5% in constant currency. Revenue includes a 210 basis-point impact from the exit of some content services business and the ransomware attack, Cognizant reported. The company also announced Jan Siegmund will take over as CFO effective Sept. 1.
The IT services giant reported Covid-19 and the ransomware attack negatively impacted revenue in April, but revenue improved sequentially through May and June.
| (US$ millions) | Q2 2020 | Q2 2019 | % change | % constant currency |
| Revenue | $4,000 | $4,141 | -3.4% | -2.5% |
| Net income | $361 | $509 | -29.1% |
Cognizant forecast revenue for the full year to be down between 2.0% to 0.5% on a constant currency basis.
In the CFO announcement, the company said Siegmund formerly served as CFO at Automatic Data Processing Inc. He will take over from Karen McLoughlin, who announced her retirement on July 29. McLoughlin will remain with the company through Dec. 31 to assist with the transition.
Revenue by geography
| (US$ millions) | Q2 2020 | % change | % constant currency |
| North America | $3,006 | -4.2% | -4.1% |
| UK | $314 | -2.5% | 0.2% |
| Continental Europe | $419 | -1.9% | 0.2% |
| Rest of world | $261 | 3.2% | 9.7% |
Share price and market cap
Shares in Cognizant were up 5.79% to $68.54 as of 12:14 p.m. Eastern time; they were 4.11% below its 52-week high. The company had a market cap of $35.02 billion.