IT services firm Cognizant on Wednesday reported a higher-than-expected profit for the third quarter, driven by demand for its digital and cloud services as well as higher spending from its healthcare and financial clients.
Cognizant Technology Solutions Corp has been investing heavily to boost its digital offerings such as cybersecurity and data analytics by acquiring smaller companies.
Revenue from Cognizant's financial sector business - which accounts for over a third of total revenue - rose 3.8 percent in the quarter ended Sept. 30, while revenue from the healthcare sector rose 9.3 percent.
Cognizant also raised the lower end of its annual revenue forecast. It now expects revenue of $14.78 billion to $14.84 billion, compared to an earlier forecast of $14.70 billion to $14.84 billion. Analysts are expecting $14.79 billion.
The company said its net income rose to $495 million or 84 cents per share in the third quarter, from $444 million or 73 cents per share, a year earlier.
Excluding one-time items, Cognizant earned 98 cents per share, edging past analysts' average estimate of 95 cents.
Revenue rose 9.1 percent to $3.77 billion.