IT services provider Cognizant Technology Solutions Corp’s fourth-quarter revenue rose a higher-than-expected 16.4 per cent, helped by increased spending by healthcare and financial services customers in North America.
The company also forecast full-year 2015 revenue growth of at least 19 per cent, higher than the 16.1 per cent achieved in 2014, which was the weakest in the company’s 20-year history.
Cognizant’s Indian rivals, Tata Consultancy Services and Wipro Ltd have also forecast accelerating growth this year as businesses, especially in North America, start to reinvest in technology to boost efficiency.
Teaneck, New Jersey-based Cognizant, which gets a little over 75 per cent of its revenue from North America but has most of its employees in India, forecast full-year revenue of at least $12.21 billion.
The company’s revenue rose to $2.74 billion in the quarter ended December 31 from $2.36 billion a year earlier.
Revenue increased 17.4 per cent in North America and 10.7 per cent in Europe.
Net income rose 11.9 per cent to $362.9 million, or 59 cents per share. Excluding items, the company earned 67 cents per share.