US-based information technology and professional services firm Cognizant Technology Solutions (Cognizant) posted a 1.1% year-on-year (YoY) fall in revenue at $4.76 billion for the first quarter FY24 due to continued slowdown in discretionary spending by clients.

Cognizant, whose majority of employees are based in India, follows the calendar year cycle from January to December.

The Nasdaq-listed firm had posted revenue at $4.81 billion in Q1 FY23. In constant currency terms, the revenue decline is 1.2%.

This is in the high-end of the company guidance range estimated at $4.68-$4.76 billion for Q1FY24, translating into a range of -2.7% to -1.2%.

During the quarter under review ending March, Cognizant’s net profit declined by around 5.9% to $546 million YoY, from $580 million in Q1 of FY23.

For Q2FY24 ending June 2024, Cognizant has guided revenue growth of 0-1.5%.

“During the first quarter, we delivered revenue above the high-end of our guidance range and continued to make progress against our strategic priorities…As our clients navigate an uncertain economic environment, we are adapting to the market dynamics by helping them achieve operational efficiencies, supporting their innovation agendas, and preparing them for AI-driven transformation across their businesses,” said Ravi Kumar S, chief executive officer at Cognizant.Cognizant’s performance reflects the overall Indian IT sector’s market sentiment with domestic majors as Tata Consultancy Services, Infosys, and Wipro also reported low single-digit revenue growth. All companies have the majority of their clients based in the US and Europe.

The company signed eight large deals (3 renewals and 5 new) during the quarter, each with a total contract value (TCV) of at least $100 million.

Cognizant’s shares rose by over 4% in the after-hours trading on Nasdaq.

US-based information technology and professional services firm Cognizant Technology Solutions (Cognizant) posted a 1.1% year-on-year (YoY) fall in revenue at $4.76 billion for the first quarter FY24 due to continued slowdown in discretionary spending by clients.

Cognizant, whose majority of employees are based in India, follows the calendar year cycle from January to December.

The Nasdaq-listed firm had posted revenue at $4.81 billion in Q1 FY23. In constant currency terms, the revenue decline is 1.2%.

This is in the high-end of the company guidance range estimated at $4.68-$4.76 billion for Q1FY24, translating into a range of -2.7% to -1.2%.

During the quarter under review ending March, Cognizant’s net profit declined by around 5.9% to $546 million YoY, from $580 million in Q1 of FY23.

For Q2FY24 ending June 2024, Cognizant has guided revenue growth of 0-1.5%.

“During the first quarter, we delivered revenue above the high-end of our guidance range and continued to make progress against our strategic priorities…As our clients navigate an uncertain economic environment, we are adapting to the market dynamics by helping them achieve operational efficiencies, supporting their innovation agendas, and preparing them for AI-driven transformation across their businesses,” said Ravi Kumar S, chief executive officer at Cognizant.Cognizant’s performance reflects the overall Indian IT sector’s market sentiment with domestic majors as Tata Consultancy Services, Infosys, and Wipro also reported low single-digit revenue growth. All companies have the majority of their clients based in the US and Europe.

The company signed eight large deals (3 renewals and 5 new) during the quarter, each with a total contract value (TCV) of at least $100 million.

Cognizant’s shares rose by over 4% in the after-hours trading on Nasdaq.