Cognizant revises guidance upward to 10%: But can it manage growth?

The company has spent $2 billion since 2019 to bolster its cloud and digital play through acquisitions

Nasdaq-listed Cognizant made news for its record attrition rate and extraordinary hiring goals even as the company revised its financial year revenue guidance upwards to 9-10 per cent in constant currency basis on Thursday. The information technology (IT) services major, which follows a January-December FY cycle, had earlier projected a growth of 5.5-7.5 per cent for the year.

For the quarter ended June 30, it posted a 12 per cent growth in revenue at $4.6 billion surpassing its guidance of 8.9-9 per cent for Q2. Digital revenue, constituting 44 per cent of the total pie, has grown 20 per cent year