Cognizant Technology Solutions (CTSH.O) surpassed Wall Street’s projections for first-quarter revenue on Wednesday, buoyed by consistent client spending, triggering a more than 4% surge in its shares during aftermarket trading.
Favorable signs in the business landscape and anticipations of interest rate reductions have spurred clients to increase investments in technology and consulting services, benefiting companies like Cognizant.
At the end of the first quarter, Cognizant reported a total headcount of 344,400, reflecting a reduction of 3,300 from the previous quarter.
The New Jersey-headquartered IT services provider’s first-quarter revenue reached $4.76 billion, outperforming analysts’ average forecast of $4.72 billion, according to LSEG data.
The company’s adjusted earnings per share for the quarter were $1.12, slightly above the estimated $1.11 per share.
For the second quarter, Cognizant anticipates revenue ranging between $4.75 billion and $4.82 billion, with the mid-point falling slightly below the estimated $4.82 billion.
Cognizant has revised its annual revenue outlook to a range of $18.9 billion to $19.7 billion, compared to its previous forecast of $19.0 billion to $19.8 billion.
