Cognizant Technology forecast quarterly revenue below Wall Street estimates on Wednesday, as clients remained cautious on discretionary IT spending.
Shares of the company were down 3% in premarket trading.
* Cognizant expects third-quarter revenue between $5.60 billion and $5.68 billion, below analysts' average estimate of $5.70 billion, according to data compiled by LSEG.
* The company is navigating a complex macro environment, with clients cautious on large investments and continued softness in smaller discretionary projects.
* Enterprises are also prioritizing investment in data center infrastructure over software as AI adoption accelerates.
* Cognizant now expects annual revenue between $22.04 billion and $22.35 billion, compared with its prior expectations of $22.11 billion to $22.64 billion.
* For the second quarter, the company reported revenue of $5.48 billion, in line with estimates and up 4.5% from a year earlier.
* Cognizant has been expanding capabilities to help clients modernize legacy platforms and deploy GenAI at scale.
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