Cognizant Technology Solutions, the NASDAQ-listed IT services giant, is considering a significant move in the Indian market while reporting mixed financial results for its latest quarter.

Potential India Listing

Cognizant's Chief Financial Officer, Jatin Dalal, revealed that the company is exploring a potential primary offering and secondary listing in India. This strategic move could allow Cognizant to offer shares on Indian stock exchanges, broadening its investor base. However, Dalal emphasized that the process is complex and long-term, with no final decision made yet. The company is currently working with legal and financial advisors to assess this opportunity.

Q2 2023 Financial Highlights

Cognizant's second-quarter results for 2023 present a mixed picture:

The significant drop in net income is primarily attributed to a one-time tax expense of $390 million. Despite this, the company saw a notable increase in revenue, driven by investments in artificial intelligence (AI) technologies.

Workforce Expansion

In line with its growth, Cognizant continued to expand its workforce:

• Added 6,000 employees in Q2 2023
• Total headcount reached 349,800

Looking Ahead

As Cognizant explores the possibility of an Indian listing, it continues to focus on AI-driven growth and strategic expansion. The potential move to list in India could open up new opportunities for the company in one of the world's fastest-growing IT markets.

While the company faces challenges, as evidenced by the impact of the one-time tax expense on its net income, the revenue growth and ongoing investments in AI suggest a forward-looking approach. Investors and industry observers will be keenly watching Cognizant's next moves, both in terms of its listing plans and its continued push into AI-driven services.

Cognizant Technology Solutions Corporation (NASDAQ: CTSH) has reported strong financial results for the third quarter, surpassing its own guidance and demonstrating continued growth momentum.

Q3 Financial Highlights

Cognizant's quarterly revenue of $5.42 billion exceeded the company's guidance range of $5.27-5.35 billion, marking a 7.3% increase compared to the same period last year. This performance represents the fifth consecutive quarter of organic revenue growth for the IT services giant.

Revised Full-Year Outlook

In light of the strong Q3 results, Cognizant has raised its full-year revenue forecast:

Strategic Developments

CEO Ravi Kumar S highlighted that this quarter saw the strongest sequential growth since 2022, underscoring the company's positive trajectory. Cognizant's focus on large deals appears to be paying off, with six new contracts valued at $100 million or more signed during the quarter. This brings the year-to-date total to 16 large deals, representing a 40% growth in total contract value compared to the same period last year.

Workforce and Capital Allocation

Cognizant continues to invest in its workforce, adding 6,000 employees during the quarter and reaching a total headcount of 349,800. This expansion aligns with the company's growth strategy and its ability to meet increasing client demands.

In terms of capital allocation, Cognizant remains committed to returning value to shareholders:

• Share Repurchases: 6.3 million shares repurchased for $450 million
• Remaining Authorization: $2.2 billion for future share repurchases
• Dividend: Quarterly dividend of $0.31 per share declared

Conclusion

Cognizant's Q3 results demonstrate the company's resilience and growth in a competitive IT services market. The raised full-year guidance suggests confidence in sustained performance, while the focus on large deals and strategic workforce expansion positions the company for potential future growth. Investors and industry observers will likely watch closely to see if Cognizant can maintain this momentum in the coming quarters.