Information technology (IT) services major Cognizant on Thursday reported a 2.3% drop in revenue for the quarter ended December 31, 2020, to $4.18 billion.
Revenue from financial services fell 11.1% year-on-year for the fourth quarter of financial year 2019-20, while products and resources declined 1.6%. However, revenue from communications, media and technology solutions increased 4.6% and healthcare saw a 4% jump for the same period.
For the full year, Cognizant reported a 0.8% decline in revenue to $16.7 billion. Net income also declined 24.4% to $1.39 billion in FY20 from $1.84 billion in FY19.
The Teaneck, New Jersey-based firm’s net profits declined 20% year-on-year to $316 million in Q4 FY20.
Cognizant expects revenue in Q1 FY21 to grow 1-2% in constant currency terms to $4.34-$4.38 billion. It forecast revenue for the full year to be in the range of $17.6-$18 billion, with a growth guidance of 5.5-8.5%.
“Having strengthened our portfolio, and anticipating the exit of a large financial services engagement, we enter 2021 reinvigorated by our growing commercial momentum, investments in our future, and our vision to become the preeminent technology services partner to clients globally,” CEO Brian Humphries said.
The company employs around 2 lakh people in India, with a reported attrition rate of 19%. Its global employee base includes 2,89,500 people.