Cognizant net profit up 3% YoY in Q1 FY23, to lay off 3,500 employees

Nasdaq-listed Cognizant Technology Solutions, one of the world’s leading professional services companies, reported a 3% year-over-year rise in its net profit to $580 million in the first quarter of FY23. However, the company reported a 0.3% YoY of decline in its revenue which stood at $4.8 billion in the first quarter.

"Our accelerated bookings growth in the quarter, which included several large deals and a healthy mix of new and expansion work, reflects the strengths of our services, our brand, and the longstanding relationships we have with our clients. I am also encouraged by the continuing reduction in our voluntary attrition," said Ravi Kumar S, Chief Executive Officer.

"In 2023, we expect to return approximately $1.4 billion to shareholders through share repurchases and dividends, including approximately $800 million of share repurchases. The NextGen program announced today will help fund continued investments in our people, growth opportunities and realignment of our real-estate to reflect our hybrid work model."

"In 2023, we expect to return approximately $1.4 billion to shareholders through share repurchases and dividends, including approximately $800 million of share repurchases. The NextGen program announced today will help fund continued investments in our people, growth opportunities and realignment of our real-estate to reflect our hybrid work model."

"In 2023, we expect to return approximately $1.4 billion to shareholders through share repurchases and dividends, including approximately $800 million of share repurchases. The NextGen program announced today will help fund continued investments in our people, growth opportunities and realignment of our real-estate to reflect our hybrid work model," said said Jan Siegmund, Chief Financial Officer.

Bookings in the first quarter grew 28% year-over-year. On a trailing-twelve-month basis, bookings grew 9% to $25.6 billion. The company expects of returning around $1.4 billion to shareholders through share repurchases and dividends in 2023.

The company announced NextGen Program,  aimed at simplifying the operating model, optimizing corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment. The programme which will be initiated in the second quarter of 2023, will affect around 3500 employees.

The company's second quarter revenue is expected to be $4.83 - $4.88 billion, a decline of 0.6% to 1.6%, or a decline of 1.0% to flat in constant currency. Full-year 2023 revenue is expected to be $19.2 - $19.6 billion, or a decline of 1.2% to growth of 0.8%, or a decline of 1.0% to growth of 1.0% in constant currency.