Cognizant forecasts quarterly revenue below estimates on cautious IT spending

Cognizant Technology forecast quarterly revenue below Wall Street estimates, pointing to cautious client spending on IT services amid macroeconomic uncertainty. The weak outlook helped drive the shares down about 5% in premarket trading. The update is negative for near-term growth expectations and suggests demand softness across the company’s core services business.

Analysis

Cognizant Technology forecast quarterly revenue below Wall Street estimates, pointing to cautious client spending on IT services amid macroeconomic uncertainty. The weak outlook helped drive the shares down about 5% in premarket trading. The update is negative for near-term growth expectations and suggests demand softness across the company’s core services business.