IT stocks gain in weak market as Cognizant forecasts stronger growth for CY25

Shares of Information Technology (IT) companies are successful absorption successful Thursday's league (February 6) aft Nasdaq-listed IT services institution Cognizant Technology Solutions reported a beardown Q4 show, beating Street estimates and forecasted stronger maturation for CY2025.

Enthused by Cognizant's affirmative outlook, the Nifty IT scale traded successful the green, contempt an wide anemic marketplace sentiment. At astir 12 pm, the Nifty IT scale was up 0.29 per cent. Of the 10 stocks constituting the Nifty IT index, 7 traded successful the green, with Persistent Systems and Coforge starring the gains, followed by Tech Mahindra, Infosys, HCL Technologies.

Meanwhile, Mphasis and Wipro traded with mild gains, portion TCS, LTIMindtree and L&T Technology Services were down up to 1 per cent.

Cognizant's revenue for the fourth-quarter came successful astatine $5.1 billion, marking a  6.8 per cent year-on-year rise, portion for the afloat twelvemonth 2024, gross grew 1.9 per cent successful changeless currency (CC) terms. By and large, the US-based IT services large met its gross maturation guidance for the 4th quarter. Cognizant follows January-December calendar for reporting fiscal performance.

For calendar twelvemonth 2025 (CY25), the institution guided for constant currency gross maturation successful the scope of 3.5-6 per cent. This guidance is, however, better than the past year's, signalling improving marketplace conditions.

Revenue for the afloat twelvemonth 2024 grew 1.9 per cent successful changeless currency. Nevertheless, it expects its gross successful CY25 to dwell successful the scope of $20.3 cardinal and $20.8 billion.

The company’s nett income increased 2.1 per cent to $558 cardinal successful Q4, successful comparison to $546 cardinal successful the aforesaid 4th of the erstwhile year. Net income, however, declined 4.1 per cent sequentially.
 
"I americium profoundly grateful to our employees for their committedness to our strategical priorities and rigorous execution, which drove 4th fourth gross maturation to the precocious extremity of our guidance range. We exited the twelvemonth with momentum — closing a grounds 29 ample deals during the twelvemonth — highlighting the effectiveness of our strategy," said Ravi Kumar S, Chief Executive Officer.