Cognizant Q2 beat estimates

Tata Consultancy Services, Infosys and Wipro also reported strong results and better-than-expected outlooks last month.

IT firm Cognizant announced its second quarter results on Tuesday. Its quarterly revenue rose to $2.161 billion, up 7% sequentially and 20.4% from the year-ago quarter. The addition of $141 million in sequential revenue is the second highest incremental revenue addition in Cognizant's history. GAAP net income was $300.4 million, up 5.7% sequentially and 19.2% from the year-ago quarter.

Company saw broad-based growth across geographies, industries and services. In terms of geographies, North America grew 6% sequentially and 17% YoY; Europe grew 11% sequentially and 37% YoY; Rest of the World grew 7% sequentially and 25% YoY.

In terms of business verticals, financial services grew 6.5% sequentially and 23.6% YoY; healthcare grew 6.2% sequentially and 11.8% YoY; manufacturing and retail grew 8.4% sequentially and 28.7% YoY.

"Our 15 year record of revenue and earnings growth is a testament to our long-term strategy of reinvesting in our business to stay relevant to our clients' changing needs and to provide increasing value as we grow each of those trusted relationships. This reinvestment strategy continues to enable Cognizant to excel in our core services while simultaneously investing in multiple horizons of growth, thereby continuing to position us well for the future," said Francisco D'Souza, CEO of Cognizant.

In the third quarter 2013, company has guided to a revenue of at least $2.25 billion, indicating at least 4.1% sequential revenue growth. Fiscal 2013 revenue expected to be at least $8.74 billion, up at least 19% compared to 2012.