IT services giant Cognizant Technology Solutions Corp. (NASDAQ: CTSH) reported second-quarter revenue rose 9.5% on a constant currency basis. In North America, which comprises the lion’s share of revenue at the company, revenue was up 8.6% in constant currency.
“In a period of unprecedented labor market conditions characterized by elevated attrition and significant wage inflation, we focused on our client commitments and delivered balanced financial results in the second quarter,” CEO Brian Humphries said.
| (US$ millions) | Q2 2022 | Q2 2021 | % change | % constant currency |
| Revenue | 4,906 | 4,585 | 7.0% | 9.5% |
| Net income | 577 | 512 | 12.7% |
In financial services, growth was driven by US regional banking clients, strength in the UK and strength in the insurance industry. Growth was impacted by the sale of Samlink on Feb. 1.
Health sciences growth was led by digital services among pharmaceutical clients as well as demand for integrated software solutions.
Products and resources revenue was driven by strength among automotive, logistics, retail and consumer goods clients. The segment benefited from acquisitions that closed in the second quarter of last year.
Growth in “communications, media and technology” was driven by strength among digital native companies.
Revenue by industry vertical
| (US$ millions) | Q2 2022 | % change | % constant currency |
| Financial services | 1,542 | 2.7% | 5.1% |
| Health sciences | 1,408 | 6.3% | 7.6% |
| Products and resources | 1,140 | 8.1% | 11.6% |
| Communication, media and technology | 816 | 16.1% | 19.5% |
Revenue by geography
| (US$ millions) | Q2 2022 | % change | % constant currency |
| North America | 3,656 | 8.4% | 8.6% |
| UK | 458 | 13.6% | 24.7% |
| Continental Europe | 445 | -7.7% | 2.5% |
| Rest of world | 347 | 5.8% | 11.2% |
Guidance
Cognizant forecast third-quarter revenue growth of between 5.0% and 6.0%, with growth in constant currency of between 7.5% and 8.5%.
Full-year revenue is forecast to grow between 6.3% and 7.3%; in constant currency, that growth is estimated at between 8.5% and 9.5%.
Share price and market cap
Shares in Cognizant were down 5.0% to $66.79 as of 12:02 p.m. Eastern time; they were 5.57% above their 52-week low, according to FT.com. The company had a market cap of $36.64 billion.