Cognizant forecasts annual revenue above estimates on strong AI demand


Figurines with computers and smartphones are seen in front of Cognizant logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration

Feb 4 (Reuters) - ‌Cognizant Technology forecast annual ‌revenue above Wall Street ‌estimates on Wednesday, betting on strong demand for its IT services ‍as businesses adoptartificial intelligence ‍into their ‌workflows.

The company has benefited from enterprise ‍clients ​prioritizing AI-related digital projects, with sustained ⁠demand for its AI and ‌cloud services boosting productivity, cutting costs ⁠and ‍supporting growth as generative AI gains traction.

Cognizant expects full-year ‍2026 revenue between $22.14 billion ‌and $22.66 billion, compared with analysts' average estimate of $22.06 billion, according to data compiled by LSEG.

It also forecast annual adjusted profit between $5.56 to $5.70 per ‌share, the mid-point of which is largely in line with ​estimates of $5.62.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Shailesh Kuber)

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