IT consulting firm Cognizant reported revenue of $4.11 billion, up 5.1% in the first quarter of 2019 compared to the same quarter year ago. Overall, the net income decline and it was $441 million compared to $520 million in the year-ago quarter.
“While I am encouraged by our client centricity, our employees’ winning spirit and our innovation, we are not yet delivering against the market opportunity. We are committed to strengthening our execution to invest in growth and drive shareholder value,” said Brian Humphries, Chief Executive Officer.
Financial Services brought 34.9% of revenues, a declined of 1.7% year-over-year and was flat in constant currency. The company said that segment revenue was primarily impacted by continued softness in business with a few of largest banking clients and several insurance and North American regional banking clients. During the quarter the company made progress in furthering its platforms and solutions strategy for banking clients through the acquisition of MeritSoft.
About 28.3% of revenue came from Healthcare with a growth of 3.9% year-over-year and 4.6% in constant currency. The consulting firm said that this segment revenue was negatively impacted by continued industry consolidation as well as the accelerated movement of work to a captive at a large North American client. Life Sciences delivered above company average growth, driven by large enterprise deals and momentum with our industry-specific platforms.
Products and Resources
Products and Resources fetched 22.2% revenue. It grew 11.3% year-over-year and 13.8% in constant currency, driven by double-digit growth across key industries including retail and consumer goods, travel and hospitality, and manufacturing, logistics, energy and utilities. The company asserted that these results reflect continued strength in cloud and digital engineering services and increased demand for interactive, IoT and analytics solutions across clients.
Communications, Media and Technology
Communications, Media and Technology contributed 14.5% of revenues, growing at 16.9% year-over-year and 19.6% in constant currency. This segment was led by growth among technology clients. Within media and communications, growth was driven primarily by digital services for media and entertainment clients to accelerate their transformation to modern media companies, partially offset by slower growth with communications clients involved in industry consolidation. Technology delivered double-digit growth driven primarily by our digital content solutions, said the company.
Second Quarter & Full Year 2019 Outlook
The company expects second quarter 2019 year-over-year revenue growth in the range of 3.9-4.9% in constant currency and full year 2019 year-over-year revenue growth in the range of 3.6-5.1% in constant currency.
“Our revised full-year outlook reflects the first-quarter underperformance and expectations of slower growth in Financial Services and Healthcare for the remainder of 2019,” said Karen McLoughlin, Chief Financial Officer.
“Over the coming quarters, we intend to bring our cost structure closer in line with our revised revenue expectations while continuing to invest in growth, talent, and our portfolio of innovative solutions to speed our pivot to digital. Our strong balance sheet enables us to maintain financial flexibility while returning capital to shareholders,” said McLoughlin.