Cognizant’s CY2024 revenue guidance highlights weak discretionary spending environment, bookings slip 6%

Cognizant Technology Solutions delivered a revenue decline of 2.4 % year-on-year in the December 2023 quarter, within the guided band of (-)1.2 to 4 %

The company’s revenue growth guidance of (-)2 to 2 % for CY2024 highlights a weak discretionary spending environment.

 The revenue guidance in absolute terms stands at $19- 19.8 billion.

The start of the year will be weak, with March 2024 quarter guidance of a revenue decline of -3 % to -1.5 %

The revenue guidance of $4.68-4.76 billion signals a decline of -1.5 % to flat revenues qoq.

Cognizant had reported Q4CY23 revenues of $4.758 billion, posting a sequential decline of 2.9 % and within the guided band.

Revenues included the contribution of 0.9 % YoY from acquisitions.

The revenue decline was mainly on account of  financial services (down 6.6 per cent YoY in c/c), followed by healthcare (down 2.7 % YoY in c/c).

While growth in products & resources (up 0.3 %) and CMT (up 2 %) slowed down to a trickle.

Cognizant’s bookings declined 6 % year-on-year, while on a trailing 12-month basis, it grew 9 % to $26.3 billion.

Total bookings included five large deals above $100 million each in TCV (CTSH won three such deals in 3QCY23).