Cognizant lifts annual revenue forecast on strong AI demand
Cognizant Technology Solutions raised its annual revenue forecast and beat first-quarter results on Wednesday, driven by increased demand for AI-powered IT services.
As clients transition to cloud-based systems and automate their operations, many are turning to AI-infused services offered by companies like Cognizant. This shift has helped the firm mitigate the effects of a volatile market.
With Generative AI gaining traction, clients are increasingly integrating AI into software development cycles, streamlining operations and enhancing customer support.
Cognizant expects annual revenue in the range of $20.5 billion to $21.0 billion, compared to previous outlook of the midpoint of $20.30 billion and $20.80 billion.
Analysts had, on average, expected $20.68 billion for 2025.
"We believe our differentiated AI and platform capabilities are helping clients navigate the near-term uncertainty while embarking on longer-term AI-led transformation" said CEO Ravi Kumar S.
In March, the company's board approved a $2 billion increase to its ongoing share repurchase plan, raising the total remaining authorization to $3.1 billion.
The New Jersey-based company's first-quarter revenue was $5.12 billion, slightly above analysts' average estimate of $5.11 billion.
Its adjusted profit per share in the reported quarter was $1.23, compared with the estimate of $1.20 per share.
Cognizant expects second-quarter revenue between $5.14 billion and $5.21 billion, the mid-point of which is above estimate of $5.12 billion, according to data compiled by LSEG.
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'Of course, larger players may be able to manage some costs better – like lab tests or imaging,' he said. 'But it doesn't mean smaller healthcare groups can't deliver care that's meaningful. What matters most is the patient-doctor relationship.' That view is core to Livingstone's approach. Ng said the group's ethos is to ensure that patients who come through its general practitioner (GP) services are well taken care of – from seeing the right specialists, to recovery and follow-up if needed. To that end, it maintains a patient-care team that coordinates referrals between GPs and specialists, and works only with trusted external doctors vetted by its internal panel. Ng also pointed to the 'eminent concern' surrounding Singapore's ageing population – a demographic shift that Dr Tay said will accelerate over the next 10 to 20 years, and drive rising demand for healthcare services. 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Oil market, long numb to war risk, confronts weekend of worry
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"There is a massive segment of the population for which a $2,000 to $3,000 purchase can be a significant proportion of their monthly salary," said Mr Hamid. "A subscription model allows them to access the premium device." Cinch, which has been operating here since 2023, has been leasing mostly to businesses such as those in the retail, logistics, information technology and public relations sectors. Around 10,000 devices such as laptops, smartphones and tablets have been leased, most of which were returned and refurbished for a second or third customer. "Every refurbished unit needs to be as good as new," said Mr Hamid. "If it doesn't meet our standards, it doesn't go back into circulation." He said that all returned devices undergo a professional diagnostic sweep and complete data wipe so users do not have to worry about privacy leaks. Customers can buy their rented devices from Cinch if they wish, but it would likely cost more than buying from retailers such as Shopee or Lazada, said Mr Hamid, urging users to rent instead. Cinch has also partnered with waste management firm Alba Group since the start of 2025 to collect and recycle devices that can no longer be refurbished for new leases. During recycling, valuable materials such as precious metals and plastics are extracted from the e-waste. Singapore generates more than 60,000 tonnes of e-waste a year, according to a report by the National Environment Agency in 2018. This is equivalent to 73 mobile phones disposed of per person in Singapore. Slowing down the device replacement cycle will reduce the overall volume of electronic waste that needs to be collected, sorted and processed, an Alba spokesperson told The Straits Times. "Alba supports efforts like Cinch's to keep electronic devices in circulation for a longer period, as it aligns with our mission to reduce e-waste and promote a circular economy in Singapore," said the spokesperson. The leadership team of Cinch, which has been operating in Singapore since 2023. PHOTO: CINCH The leasing of laptops, smartphones and tablets has become a standard practice among some businesses, as it allows them to access the latest technology without incurring huge upfront costs. Leasing is also a way of reducing depreciating assets. Leasing firms typically cover a device's configuration, maintenance, repair and eco-friendly disposal. Telcos Singtel and StarHub have been leasing devices to businesses since 2020 and 2021 respectively, while M1 does so only as part of a more comprehensive suite of tech services. Singtel started leasing devices to consumers in 2018, but ceased the programme in 2022. Mr Keith Leong, Singtel's managing director of enterprise, said consumers find that they get better value from buying devices bundled with mobile plans. But businesses in sectors such as government, infocomm and aviation continue to lease from Singtel. While the device leasing meets the specific needs of some businesses, many consumers still choose to buy devices as it gives them full ownership and control, which can be cost-effective over the long run, said Mr Leong. "Ultimately, both models provide valuable pathways to equip a mobile workforce effectively," he said. Other rental firms such as Circular and have also been in the market since 2021 to wean consumers from device ownership. Apart from renting out phones, laptop, and gaming consoles, also rents out home appliances such as digital door locks and washing machines. Leasing an iPhone 16 Pro Max with 512GB storage space would cost between $69 and $82 a month for two years from Circular, depending on the phone's condition. The same model would cost between $92 and $99 a month for two years from Cinch's adviser Arvin Singh said that Netflix and Grab have proven that ownership of storage discs and cars, respectively, is not essential. "Netflix for many years now has disrupted ownership of DVDs and hardware... So I think it's not a strange concept for consumers. When it comes to phones, maybe a bit more education is required," said Mr Singh. However, Ms Tracy Tsai, vice-president analyst of consulting firm Gartner, said that phones cannot be compared to DVDs, cars or bicycles as phones carry confidential personal data. The cost-effectiveness of renting also comes into question if users upgrade frequently, she added. "But if users want to chase the latest phone every year, renting might be less of an issue."
