Cognizant Revenue Forecast Misses Wall Street Estimates
Cognizant expects current-quarter revenue between $5.45 billion and $5.52 billion amid cautious IT spending. Shares fell 6% following the cautious outlook.
Cognizant Technology Solutions Corp. expects current-quarter revenue between $5.45 billion and $5.52 billion, missing the $5.56 billion average analyst estimate. Shares fell 6% during Wednesday premarket trading as clients reduced discretionary IT spending. The forecast signals that enterprise caution toward technology investments is offsetting the company's pivot to AI-driven services.
### Project Leap and Margin Expansion Cognizant Technology Solutions Corp. announced plans to launch Project Leap in the second quarter to accelerate its transition to an AI-driven model. The initiative aims to generate $200 million to $300 million in annual savings by 2026 through streamlined operations and integrated offerings. To achieve this, the company will incur restructuring charges between $230 million and $320 million, primarily for workforce reductions.
