IT services provider Cognizant Technology Solutions Corp reported quarterly revenue and profit above analysts’ expectations, helped by higher spending by clients in North America, especially in the healthcare and financial sectors. Net income for the IT giant grew by 9.7 per cent sequentially (up 13 per cent year-on-year) to $420.1 million compared to $382.9 million. Revenue rose 22.6 per cent to $3.09 billion.
Revenue from the company’s financial services businessrose 18.1 per cent to $1.25 billion in the quarter.The company raised its forecast for full-year adjusted profit to at least $3 per share from $2.93 and for revenue to at least $12.33 billion from $12.24 billion
Cognizant also raised its full year revenue and EPS guidance for the second time this year. “Fiscal 2015 revenue is expected to be at least $12.33 billion, up at least 20.1 per cent compared to 2014 and non-GAAP diluted earnings per share is expected to be at least $3,” the software services provider said in a statement.
The company said in May it expected its healthcare business to drive growth this year, helped by its acquisition of healthcare IT services provider TriZetto Corp and the implementation of the US Affordable Care Act, or Obamacare.
Like its Indian rivals Tata Consultancy Services , and Infosys Ltd, Cognizant gets the largest chunk of its revenue from financial services clients, but the company’s healthcare business, which accounts for nearly a third of revenue, has been the fastest growing for the past three quarters.
Revenue from the company’s healthcare business surged 39 per cent to $897.3 million in the second quarter ended June 30.
Cognizant bought TriZetto Corp for $2.7 billion last year.
Analysts on average were expecting a profit $2.97 per share and revenue of $12.32 billion for the full year.
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