Cognizant, the Nasdaq-listed IT services major with a major presence in India, continued with its aggressive growth momentum as revenue rose 16.1% to $10.26 billion in 2014, prompting it to guide towards an ambitious growth target of 19% for 2015. This performance beats the upper end of the IT industry’s guidance of 13-15% for FY15.
Annual revenue growth included revenues coming in from its $2.8-billion acquisition of healthcare IT firm TriZetto. Outside the deal, revenue growth stands at 15.1%. Cognizant’s net profit for the fourth quarter rose 12% to touch $362.9 million while the revenue for the same period was $2.74 billion growing by 16.4%. For the whole year, net profit stood at $1.44 billion, up 17%.
“Despite unfavorable European currency movements during the fourth quarter, we finished 2014 with strong revenue performance and believe we are well positioned to continue that momentum into 2015 on the strength of our integrated consulting, technology, digital and business services capabilities,” said, Francisco D’Souza, CEO, Cognizant.
The financial results surpassed that of its Indian peers, which have given a more subdued commentary on future prospects. On a sequential basis, the revenue grew by 6.2% including its TriZetto acquisition.
The big surprise from Cognizant was its revenue guidance for 2015, which it expects to be at least $12.21 billion. For the first quarter of 2015, it expects a revenue of $2.88 billion translating into sequential growth of 5.1%.
“2014 was a significant year, marking 20 years of innovation and growth for Cognizant,” said Gordon Coburn, president. “Integration of our $2.8-billion acquisition of TriZetto, completed in the fourth quarter, is well underway and we’re excited by the healthcare opportunities we see.”