Cognizant expects constant currency revenue growth of 8%-11% in 2022-24

Cognizant has said it expects its revenue to grow 8-11% in annual constant currency terms during 2022-24

US-based IT firm Cognizant has said it expects its revenue to grow 8-11 per cent in annual constant currency terms during 2022-24.

Discussing its growth strategy and outlook at an investor briefing, Cognizant said it expects to log an annual constant currency revenue growth of 8 to 11 per cent during 2022-2024 and an annual operating margin expansion of 20 to 40 basis points.

Cognizant expects to close the year 2021 with USD 18.5 billion in revenue. It said organic revenue is expected to drive over 75 per cent of growth in 2022-24, and that 2022 revenue growth is likely to be towards the high-end of the multi-year outlook.

"We continue to make strong progress in positioning the company for sustained revenue growth, and margin expansion," Cognizant Chief Executive Officer Brian Humphries said.

By executing a growth strategy, which includes strengthening digital portfolio, partnerships, and commercial engine, while investing in global delivery network, people, and capabilities, Cognizant can help clients with their most strategic initiatives across their transformation journeys, he added.

"I am excited about the global opportunities that lie ahead to accelerate our growth, expand margins, and deliver enhanced long-term shareholder value," he said.

It has invested USD 2.5 billion in digital M&A acquisitions since 2019.

As part of the event, CFO Jan Siegmund shared additional detail on Cognizant's updated financial framework and capital deployment priorities, including that 50 per cent of the free cash flow is expected to be deployed towards strategic acquisitions, 25 per cent to share repurchases, and 25 per cent to dividends.