Cognizant Q3 revenue, EPS expectations, revenue view higher as well

Cognizant said its "digital" revenue, including IoT and AI, rose by 18%.
Written by Tiernan Ray, Senior Contributing Writer

IT services company Cognizant this afternoon reported Q4 revenue and profit that both topped Wall Street's expectations, and an outlook for this quarter's revenue that was higher as well. 

Cognizant shares were unchanged in late trading. 

CEO and founder Brian Humphries remarked that he was "pleased with our third quarter performance."

Added Humphries, "While the industry faces an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and stayed focused on delivering against our client commitments and our strategic repositioning."

"We continue to make important investments to ensure Cognizant is well positioned to serve our clients as they embrace digital business models."

Revenue in the three months ended in September rose to $4.7 billion, yielding a net profit of $1.06 a share, excluding some costs.

Cognizant's own forecast had been $4.69 billion to $4.74 billion in revenue.

Analysts had been modeling $4.72 billion and a net profit of $1.05 per share. 

The part of revenue that Cognizant designates as "digital," comprising IoT, AI, experience-driven software engineering and cloud, rose 18%.

Also: Cognizant meets Q2 expectations with revenue up across segments

For the current quarter, the company sees revenue of $4.75 billion to $4.79 billion, above consensus for $4.76 billion.

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