Cognizant Q2 net rises 86% to $470 mn on lower income tax

Cognizant said its subsidiary in India repurchased shares at $2.8 bn from shareholders last year

Cognizant Technology Solutions Corp reported a better-than-expected quarterly profit on Thursday, as the IT services provider benefited from lower income tax compared with the year-ago period.
 

The company's net income rose 86 percent to $470 million, or 80 cents per share, from $252 million, or 41 cents per share, a year earlier.
 

Cognizant said its subsidiary in India repurchased shares valued at $2.8 billion from its shareholders in May last year. As a result of the transaction, the company said it took an income tax expense of $190 million in the year-ago period.
 

Revenue rose nearly 9 percent to $3.67 billion, boosted by strong demand for its cloud-based services from its financial and healthcare clients.
 

Revenue from its financial services sector, which accounts for more than a third of its total revenue, rose 4.1 percent, and revenue from healthcare services rose 9.5 percent in the second quarter.
 

Excluding items, the company earned 93 cents per share.