![Loading...](https://assets.techcircle.in/static-assets/images/spinner-1s-64px.gif)
Cognizant ups 2021 revenue forecast powered by growth in digital services revenues
![Cognizant ups 2021 revenue forecast powered by growth in digital services revenues](https://assets.techcircle.in/uploads/article-image/2021/07/images/26539-26462-cognizant-rf-141235695-xl.jpeg)
![Loading...](https://assets.techcircle.in/static-assets/images/spinner-1s-64px.gif)
Teaneck, New Jersey based information technology (IT) service firm Cognizant Technology Solutions Corporation has raised its 2021 revenue outlook to 9-10% in constant currency, up from the 5.6-7.6% projected in the previous quarter.
The company expects the full year revenues for 2021 to be in the range of $18.4-$18.5 billion, backed by growth in demand for digital services. The company’s digital service revenues for the second quarter of 2021 ending July 30, grew by nearly 20% year-on-year, representing 44% of the total revenue, up from 42% in the prior year period.
“Second quarter top-line results exceeded our guidance, driven by improved demand for our services and momentum in our digital revenue, and we increased our full-year 2021 revenue growth to 10.2-11.2%,” said Jan Siegmund, chief financial officer, in a statement issued by the company.
![Loading...](https://assets.techcircle.in/static-assets/images/spinner-1s-64px.gif)
He further added, “To meet the strong client demand for our services, we have continued to scale our recruiting capabilities and invest in our people.”
In Q2, Cognizant recorded revenues at $4.6 billion, a 12% growth in constant currency terms year-on-year. Financial services continued to be the largest contributor in terms of revenues accounting for 32.8%, followed by healthcare, products and resources and communications, media and technology.
During the quarter, the company repurchased 4 million shares for $296 million as part of its share repurchase program, with $2.3 billion remaining under the current share repurchase authorization as on June 30, 2021.
![Loading...](https://assets.techcircle.in/static-assets/images/spinner-1s-64px.gif)
Cognizant also deployed $1.5 billion on acquisitions, share repurchases and dividends year-to-date.
The company stated that it expected a modest sequential increase in adjusted operating margins for Q3, followed by a modest sequential decline in Q4. The revenue outlook for Q3 was expected to be in the range of $4.69-$4.764 billion, a 10-11% increase in constant currency over the corresponding quarter in the previous year.