Cognizant Q3 net profit up 12%

NEW DELHI: US-based IT services major Cognizant reported a net profit of $444.4 million for the third quarter ended September 30, 2016, up 11.9% from a year ago quarter and jumped 76% on a sequential basis from $252.4 million.

US-based information technology company, which has most of its employees working in India, has added 11,500 employees (net) during the quarter.

"Revenue for the third quarter of 2016 was $3.45 billion, up 8.4% from $3.19 billion in the third quarter of 2015. GAAP net income was $444.4 million, or $0.73 per diluted share, compared to $397.2 million, or $0.65 per diluted share, in the third quarter of 2015. Non-GAAP diluted EPS1 was $0.86 compared to $0.76 in the third quarter of 2015. GAAP operating margin for the quarter was 16.9%. Non-GAAP operating margin1 for the quarter was 19.3%, within the Company’s target range of 19-20%," the company said in a statement.

“We see ongoing client demand for our services across industries and geographies,” said Francisco D’Souza, Chief Executive Officer.

“As the physical and digital worlds converge, we have made it easier for clients to work with us by aligning our organizational structure and capabilities around the broader focus of assisting clients drive digital transformations. Our new President, Raj Mehta, who has been a key member of our senior leadership team for two decades, and the broader team of executives are leading our strategic initiatives. They have a proven track record of innovation, execution and an unwavering focus on client service and satisfaction," he added.

“Third quarter revenue was within, and non-GAAP EPS was slightly above, our guided range, indicating that we continue to execute well on our stated strategy,” said Karen McLoughlin, Chief Financial Officer.

“Our solid performance was also reflected in another strong quarter of cash flow generation as cash and investments, net of debt increased by $390 million," he said.