Cognizant Technology beats Wall Street expectations, shares surge

Cognizant results: Cognizant Technology Solutions surpassed Wall Street's revenue expectations for the first quarter, buoyed by sustained client spending, leading to a more than 4 per cent increase in its shares during aftermarket trading.

An improved business climate and anticipation of interest rate reductions have prompted clients to increase investments in technology and consulting services, benefiting companies like Cognizant.

Despite a decrease of 3,300 in total headcount from the previous quarter, the New Jersey-based IT services provider reported first-quarter revenue of $4.76 billion, surpassing analysts' average estimate of $4.72 billion according to LSEG data.

Cognizant's adjusted earnings per share for the quarter were $1.12, slightly exceeding the estimated $1.11 per share.

For the second quarter, the company anticipates revenue to range between $4.75 billion and $4.82 billion, with the midpoint falling below the estimated $4.82 billion.

However, Cognizant has revised its annual revenue forecast to a range of $18.9 billion to $19.7 billion, down from the previous expectation of $19.0 billion to $19.8 billion.

(With Reuters inputs)