INFY

Adds CFO comments in paragraph 4, analyst quotes in paragraphs 7 and 8

By Meghana Khare and Jaspreet Singh

June 20 (Reuters) - Accenture ACN.N reported a second straight drop in quarterly new bookings on Friday and unveiled an organizational revamp to bolster its AI consulting services, as a cutback in U.S. government spending and economic uncertainty pressure growth.

The bookings decline overshadowed the consulting giant's better-than-expected quarterly revenue and an increase in its annual forecasts, sending its shares down more than 6%.

Consulting and IT firms are under pressure as U.S. tariffs and accompanying economic uncertainty force companies to rethink their spending plans, while the Trump administration's cost-cutting efforts have led to contract cancellations and delays.

CFO Angie Park said slower government spending will have an impact of 2% on its fiscal fourth-quarter and annual revenue, after recording an "immaterial" hit in the last quarter.

Bookings - which represent future revenue secured through contracts - fell 6% to $19.70 billion in the third quarter, below the Visible Alpha estimate of $21.54 billion and worse than the 3% decline in the previous quarter.

Accenture said 30 clients recorded quarterly bookings of greater than $100 million, compared with 32 in the previous quarter. Generative AI bookings totaled about $1.5 billion.

AJ Bell analyst Dan Coatsworth said Accenture had already rattled investors in March with warnings on U.S. government spending, and the latest bookings decline adds to concerns that securing new business was also getting harder.

"Earnings grew, but the market is more focused on what's ahead, not what's just happened."

To navigate the uncertainty, Accenture plans to focus on AI consulting with the creation of a new business unit called reinvention services, which would combine its AI offerings and be led by Manish Sharma, the head of its Americas business.

Accenture posted third-quarter revenue of $17.7 billion, beating analysts' average estimate of $17.30 billion, according to data compiled by LSEG. That growth was powered by higher spending by its clients in the financial services industry.

Profit per share of $3.49 also beat estimates of $3.32.

Accenture now expects annual revenue growth of 6% to 7%, compared with its earlier expectation of 5% to 7%.

(Reporting by Meghana Khare and Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)

(([email protected];))

June 18 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS AND ADOBE ANNOUNCE STRATEGIC COLLABORATION

• COLLABORATION FOR MARKETING TRANSFORMATION WITH AI

Source text: ID:nnAZN3ZUU6Z

Further company coverage: INFY.NS

(([email protected];;))

May 29 (Reuters) - Infosys Ltd INFY.NS:

• LAUNCHES OVER 200 ENTERPRISE AI AGENTS

• LAUNCHES OVER 200 ENTERPRISE AI AGENTS, PART OF INFOSYS TOPAZ AI OFFERINGS, GOOGLE CLOUD

Source text: ID:nBSE6FGYsZ

Further company coverage: INFY.NS

(([email protected];;))

May 27 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS AND E.ON COLLABORATE

Further company coverage: INFY.NS

(([email protected];;))

May 2 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - COMPLETES ACQUISITION OF THE MISSING LINK

Source text: [ID:]

Further company coverage: INFY.NS

(([email protected];))

April 30 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS COLLABORATES WITH YORKSHIRE BUILDING SOCIETY

Source text: ID:nBSE6rc3t1

Further company coverage: INFY.NS

(([email protected];;))

April 29 (Reuters) - Infosys Ltd INFY.NS:

• ANNOUNCING INFOSYS TOPAZ FOR SAP S/4HANA CLOUD

Source text: [ID:]

Further company coverage: INFY.NS

(([email protected];;))

BENGALURU, April 23 (Reuters) - India's No.6 software services exporter LTIMindtree LTIM.NS on Wednesday marginally missed quarterly earnings estimates due to a revenue decline in its healthcare and consumer segments.

The company posted consolidated revenue of 97.72 billion rupees ($1.14 billion) for the quarter ended March 31, up 10% year-on-year, but below the analysts' average estimate of 98.57 billion rupees, according to LSEG data.

Its peers, Tata Consultancy Services TCS.NS and Infosys INFY.NS, have previously flagged a difficult year ahead, as global economic uncertainty and cautious client spending further impact the sector.

The Indian IT sector, valued at $283 billion, is facing challenges due to U.S. President Donald Trump's unpredictable tariff policies, which are causing uncertainty and delays in technology spending decisions among its major clients.

Indian IT companies expect retail and manufacturing clients to be more exposed to the tariff turmoil and may resort to cost-cutting if uncertainty persists.

The company's quarterly profit rose 2.5% to 11.29 billion rupees, while analysts, on average, were expecting a profit of 11.58 billion rupees.

Revenue at its healthcare and consumer verticals fell during the quarter by 16.2% and 1.9%, respectively. Its largest vertical, banking, financial services and insurance, grew 12%.

LTIMindtree's revenue from North America, which accounts for nearly 75% of its total, grew 6.8%, whereas its Europe market declined 1.5%.

"Our key verticals and a major geography drove our yearly growth despite an ongoing challenging macro environment," said Debashis Chatterjee, CEO, in a statement.

Its deal wins stood at $1.6 billion versus $1.68 billion in the previous quarter and $1.43 billion in the year-ago period.

The company's shares closed 5% higher ahead of the results.

($1 = 85.3880 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Vijay Kishore)

(([email protected]))

Recasts throughout, adds analyst and CEO comments

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, April 22 (Reuters) - HCLTech HCLT.NS, India's third-largest IT services company, posted slightly lower-than-estimated fourth-quarter revenue on Tuesday, but projected growth opportunities to emerge from the global macro overhang.

The company expects "large opportunities" as clients use generative AI and other technologies to reduce costs in the tariff-driven environment, CEO C Vijayakumar said in a post-earnings conference.

"As I look beyond the uncertain short-term, I strongly believe there will be strong growth opportunities emerging out of the market," he said.

However, HCLTech expects the tariff-led turmoil to impact retail and manufacturing verticals and spill over to the other segments after fully kicking in.

The company's consolidated revenue rose 6.1% to 302.46 billion rupees ($3.6 billion) in the fourth fiscal quarter. Analysts on average expected revenue of 302.75 billion rupees, according to data compiled by LSEG.

It expects revenue growth to be in the range of 2% to 5% for fiscal 2026 that started on April 1.

"The street expectations on HCLTech's guidance were really low after Infosys' tepid number last week. HCLTech has delivered guidance (that) looks the best among peers in a conservative environment overall," said Piyush Pandey, lead IT analyst at Centrum Broking.

Industry leader Tata Consultancy Services TCS.NS missed its quarterly earnings estimates and warned about clients delaying decision-making in discretionary projects. Larger peer Infosys INFY.NS has forecast flat to 3% revenue growth for fiscal year 2026.

HCLTech's quarterly net profit rose 8.1% to 43.07 billion rupees, compared with analysts' mean estimate of 43.56 billion rupees.

Deal wins for the quarter stood at $3 billion, compared with $2.1 billion a year ago.

Four of the company's seven segments grew during the quarter, with the telecom and media vertical expanding by 24.3%.

HCLTech shares closed 0.1% lower on Tuesday while the sub-index of IT stocks .NIFTYIT that ended 0.57% lower that day.

($1 = 85.1710 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Mrigank Dhaniwala and Shreya Biswas)

(([email protected]))

** Shares of India's No. 2 IT services exporter Infosys Ltd INFY.NS close 2.2% higher at 1,451 rupees

** INFY has dropped 25% this year up to its previous session, the most among India's top 3 IT firms, and analysts see this as a good buying opportunity

** Stock's price-to-earnings multiple at around 20x, which brokerages say is in line with 10-20-year averages and cheapest compared to TCS TCS.NS (~23x) and HCLTech HCLT.NS (20.8x) - data compiled by LSEG

** J.P.Morgan (maintains "overweight" rating) analysts say they "would buy into weakness" in INFY's current share price

** Investec (upgrades to "buy") says its price target of 1,575 rupees is justified even after accounting for risks

** Valuations are "not very demanding," says HSBC (maintains "buy")

** INFY top boost to 10-member Nifty IT .NIFTYIT index, which closed up 2.2%

** Day's gains bring down INFY's YTD losses to ~23%, but it remains the worst-performing large-cap IT stock

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

April 17 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS TO ACQUIRE LEADING CYBERSECURITY SERVICES PROVIDER THE MISSING LINK

Source text: ID:nCNWKPm7Wa

Further company coverage: INFY.NS

(([email protected];))

BENGALURU, April 16 (Reuters) - Wipro WIPR.NS, India's fourth-largest software services provider, posted lower-than-expected revenue for the fourth quarter, hurt by macro uncertainties weighing on client spending.

The company's consolidated revenue rose 1.3% to 225.04 billion rupees ($2.63 billion) in the quarter. Analysts, on average, expected revenue to come in at 226.21 billion rupees, as per data compiled by LSEG.

($1 = 85.6410 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Nivedita Bhattacharjee)

• Infosys Ltd INFY.N, INFY.K is expected to show a rise in quarterly revenue when it reports results on April 17 for the period ending March 31 2025

• The Bangalore Karnataka-based company is expected to report a 6.7% increase in revenue to $4.87 billion from $4.56 billion a year ago, according to the mean estimate from 7 analysts, based on LSEG data.

• ​LSEG's mean analyst estimate for Infosys Ltd is for earnings of 19 cents per share.

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy," 7 "hold" and no "sell" or "strong sell."

• The mean earnings estimate of analysts was unchanged in the last three months. ​

• Wall Street's median 12-month price target for Infosys Ltd is $21.81​, above​ its last closing price of $17.01. ​​​

Previous quarterly performance (using preferred earnings measure in US dollars). ​

This summary was machine generated April 15 at 10:32 GMT. All figures in US dollars unless otherwise stated. (For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact [email protected])

Recasts throughout; adds CEO, analyst comments

By Haripriya Suresh and Sai Ishwarbharath B

BENGALURU, April 10 (Reuters) - India's top software-services exporter Tata Consultancy Services TCS.NS reported weaker-than-expected quarterly results on Thursday and warned uncertainty around U.S. tariffs was prompting clients to rethink discretionary projects.

The $283 billion Indian IT sector was counting on the Trump administration's business-friendly policies to revive client confidence and spending in its biggest market, but the U.S. tariff saga has soured expectations of any immediate upswing in fortunes.

"We had spoken about improving market sentiments and early signs of discretionary spend revival in January. This was not sustained due to many of the discussions around tariffs," TCS CEO K Krithivasan said in a press conference. "We are observing delays in decision-making and project-starting with respect to discretionary investments."

Krithivasan said the uncertainty was likely to settle over the "next few months" and he expects fiscal 2026 to be better than the prior year. The comments came a day after Trump said he would temporarily lower the hefty duties imposed on dozens of countries while ramping up pressure on China.

Industry watchers agreed.

"There should be some stability after two quarters as the dust from tariffs settle," NelsonHall analyst Gaurav Parab told Reuters.

TCS is the first major Indian IT firm to announce results for the fourth quarter. Smaller rivals Infosys INFY.NS, HCLTech HCLT.NS, Wipro WIPR.NS and Tech Mahindra TEML.NS will report in the coming weeks.

The Tata Group firm's net profit fell 1.69% to 122.24 billion rupees ($1.42 billion), while analysts on average expected 126.54 billion, per data compiled by LSEG. Revenue rose 5.3% to 644.79 billion rupees, missing analysts' estimates of 647.58 billion rupees.

Deal wins for the quarter stood at $12.2 billion, down from a record $13.2 billion in the same period last year.

Citing the uncertain business environment, TCS said it was yet to decide on annual wage hikes.

The company named Aarthi Subramanian as its chief operating officer and Mangesh Sathe as its chief strategy officer, effective May 1.

($1 = 86.2220 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B ; Editing by Dhanya Skariachan and Devika Syamnath)

(([email protected];))

April 9 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS AND AIB EXTEND STRATEGIC COLLABORATION FOR DIGITAL TRANSFORMATION

Source text: ID:nPrecqMzka

Further company coverage: INFY.NS

(((( [email protected] ;));))

Corrects syntax in paragraph 1

By Haripriya Suresh

BENGALURU, April 4 (Reuters) - India's $283-billion IT sector should brace for a rough year ahead as tariffs are likely to stoke inflation in its key U.S. market and force clients to cut spending, analysts said.

Although President Donald Trump did not impose direct tariffs on IT services, Indian firms are expected to feel the heat as clients, especially in manufacturing, logistics and retail sectors, adjust to the new levies.

That could slow deal cycles, delay existing projects and hurt revenue growth, analysts said. Bernstein and ICICI Securities rushed to cut their ratings on the Indian IT sector soon after the tariff announcement.

The tariffs come at a time the sector was counting on Trump to revive client confidence and discretionary spending after years of weak revenue growth.

The U.S. accounts for more than half of India's $190 billion software exports, making the sector sensitive to shifts in spending confidence among businesses in the world's largest economy. J.P.Morgan on Friday lifted global and U.S. recession odds to 60% after Trump's tariff announcement.

"With a rising risk of U.S. recession and uncertain decision-making, we think chances of fiscal 2026 being a complete washout are rising," J.P. Morgan said in a note on Friday, without giving specific numbers.

At least six analysts expect Indian IT firms to issue a "conservative" annual revenue growth forecast when quarterly results start next week.

Companies with a greater exposure to discretionary spending are expected to bear the brunt of any tariff-fueled slowdown.

"Discretionary IT spend will likely see an impact across the industry verticals. Companies to get impacted will typically be the high-growth companies in the large caps and some of the mid-caps where the exposure usually is much higher on the discretionary side," BNP Paribas analyst Kumar Rakesh said.

He added the impact of a potential slowdown could be apparent by the September quarter.

India's Nifty IT index .NIFTYIT fell 3.6% on Friday to take its losses for the week to 9.15%, the steepest weekly fall for the index in more than five years.

(Reporting by Haripriya Suresh; Editing by Dhanya Skariachan, Sonia Cheema and Saumyadeb Chakrabarty)

(([email protected];))

April 2 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - INFOSYS AND FORMULA E LAUNCH AI-POWERED STATS CENTER

Source text: ID:nPLXB0A3B3

Further company coverage: INFY.NS

(([email protected];;))

March 27 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - INFOSYS POWERS LKQ EUROPE’S HR TRANSFORMATION WITH A UNIFIED DIGITAL PLATFORM

Source text: [ID:]

Further company coverage: INFY.NS

(([email protected];;))

By Haripriya Suresh and Bharath Rajeswaran

BENGALURU, March 21 (Reuters) - India's information technology companies, among the worst-performing sectors this year, may not see a recovery in fiscal 2026, analysts said, after Accenture ACN.N flagged weak discretionary spending and demand in its quarterly report.

Accenture, the world's largest IT services player and a bellwether for the Indian IT industry, warned on Thursday that spending on discretionary projects in the quarter "was still constrained" and flagged no meaningful increase in client budgets.

Escalating global trade tensions following fresh U.S. tariffs on trading partners has sparked concerns over a slowdown in the United States - a key market for Indian IT companies.

"Whatever has happened in the last two months has created a higher level of uncertainty in terms of how the first half of fiscal 2026 will pan out and what impact it will have on the FY26 recovery rate," Amit Chandra, deputy vice president at HDFC Securities, told Reuters.

India's IT index is currently down 15.3% so far this year and is set for its worst quarter since June 2022. Top firms such as TCS TCS.NS, Wipro WIPR.NS, Infosys INFY.NS and HCLTech HCLT.NS lost between 11.2% and 18.1% this year.

Analysts at Kotak Institutional Equities said softening demand recovery and weak mega deal flow in fiscal 2025 will result in lower incremental revenue from mega deals in fiscal 2026 for Indian Tier-1 IT. "Companies will also face net headwinds from early stages of gen AI adoption," they said.

Citi Research has estimated that IT companies in its coverage could see revenue growth of 4% in fiscal 2026, similar to fiscal 2025, while Morgan Stanley expects growth assumption to be hurt due to subdued client spending.

According to Chandra, while banking, financial services, and insurance (BFSI) and healthcare verticals showed signs of recovery, the last two months' uncertainty has meant that clients across sectors are "going into a wait-and-watch mode", and can likely curtail spends.

Accenture also largely flagged delays and cancellations of new contracts in the U.S. due to the Trump administration's moves. However, while "Indian IT has limited exposure," according to Citi analysts, this can "increase competitive intensity in other segments".

(Reporting by Haripriya Suresh and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)

(([email protected];))

** Morgan Stanley tweaks its India focus list of stocks to add IT company Coforge COFO.NS and airlines operator Interglobe Aviation INGL.NS

** Brokerage removes Infosys INFY.NS and automaker Mahindra & Mahindra MAHM.NS to accommodate the additions

** Brokerage remains positive on large private sector financials, consumer, industrial and IT stocks

** Large-deal momentum, increasing addressable market, execution track record bodes well for COFO's growth prospects, it says

** Adds, COFO's recent underperformance over IT stocks offers good entry point

** COFO down 25% in 2025 so far; IT .NIFTYIT lost 17%

** INGL's rising market share in India, one of the fastest growing aviation markets, to aid earnings over fiscal years 2025-2027, according to Morgan Stanley

** COFO little changed on the day, INGL is up 1.6%; INFY and MAHM up 0.4% and 1.9%, respectively

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

March 14 (Reuters) - Indian IT services provider Infosys INFY.NS on Friday said it had reached an agreement with the plaintiffs of lawsuits pending against its U.S. unit over the 2023 cyber incident.

Infosys McCamish Systems has agreed to pay $17.5 million into a fund to settle all the pending class action lawsuits and resolve all allegations made in the incident.

In November 2023, Infosys had disclosed that Infosys McCamish Systems was impacted by a cyber security event, resulting in the non-availability of certain applications and systems.

In April last year, Infosys said McCamish, in coordination with its third-party vendor eDiscovery, identified up to 6.5 million individuals whose information was subject to unauthorized access and data exfiltration in the incident.

(Reporting by Ashish Chandra in Bengaluru; Editing by Maju Samuel)

(([email protected]; +91 7982114624;))

** India's Infosys INFY.NS slips nearly 4% to eight-month low of 1,598.30 rupees

** Motilal Oswal downgrades stock to "neutral" - its first downgrade in 11 years - on weak growth concerns

** Morgan Stanley also downgrades stock to "equal-weight" from "overweight" - its first downgrade in four years, as per reports

** Says valuations stretched, raises concerns over slowing growth

** Stock drops 6% in two days

** IT index .NIFTYIT down 2.3%

** Concerns that U.S. economy may slow and impact revenue growth for IT companies weighing on stocks

** INFY down 15% YTD, the same as IT index

(Reporting by Vivek Kumar M)

(([email protected];))

** Shares of India's No.2 IT company Infosys INFY.NS rise 1.4% to 1,710 rupees; stock top pct gainer on Nifty IT index .NIFTYIT

** CLSA upgrades stock to "outperform" from "hold"; PT at 1,978 rupees

** Discretionary demand revival across key verticals and geographies intact, supporting continued growth for the IT services major - CLSA

** Adds, current valuation levels present attractive investment opportunity

** INFY's demand pipeline remains strong, especially in high-growth sectors such as cloud computing, data analytics, and enterprise resource planning - CLSA

** Analysts covering INFY on avg rate it "buy", while rivals HCLTech HCLT.NS and Wipro WIPR.NS rated "hold" on avg, per data compiled by LSEG

** INFY has shed 10% so far this year vs a 12.6% fall in NIFTYIT

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

Feb 28 (Reuters) - Infosys Ltd INFY.NS:

• GETS TAX ORDER WITH TOTAL PENALTY OF 6.1 MILLION RUPEES

Source text: ID:nBSE9Fp3q

Further company coverage: INFY.NS

(([email protected];;))

Feb 26 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - LAUNCHES OPEN-SOURCE RESPONSIBLE AI TOOLKIT

Source text: [ID:]

Further company coverage: INFY.NS

(([email protected];;))

By Haripriya Suresh and Akash Sriram

MUMBAI, Feb 24 (Reuters) - Indian IT firms need to rethink how they operate and the country needs to create its own language models as artificial intelligence technologies disrupt the sector, according to HCLTech HCLT.NS CEO C Vijayakumar.

The generative AI boom has threatened to disrupt business models for Indian IT companies that largely serve clients in the United States for operations support, providing software as a service.

"The underlying themes are not the same as cloud and digitization and other things ... This is very different. The changes that AI is assuring are very different, and we need to be more proactive to even categorize our revenues to create completely new businesses," Vijayakumar said at an industry event in Mumbai.

Generative AI, which can write code for software among a plethora of tasks, is expected to speed up the timeline to develop products, improving efficiency of a company's workforce.

For an example, a five-year technology transformational program valued at about $1 billion at a very large financial services firm could be done in three-and-a-half years, Vijayakumar said.

He also said India should build its own language models to cut down dependency on other countries and avoid impact from geopolitical issues.

Large language models are trained on massive amounts of data to generate text and other content.

"We should not assume that these (language) models will continue to be open source. I think these are going to be the coins on which the geopolitics is going to be played off," Vijayakumar said, adding that countries could limit some usage beyond their boundaries.

"To have a long-term competitive advantage, it makes a lot of sense to build and the costs are coming down. We need to find ways to very economically create a training infrastructure to train the models," he said.

IT industry executives also said the sector needs to avoid complacency to adapt and overcome challenges.

"I think we have to be paranoid. We have to be non-complacent. That is the way we can manage to keep up with what's going on in the industry," Infosys INFY.NS CEO Salil Parekh said.

(Reporting by Haripriya, Akash Sriram, writing by Sethuraman NR; Editing by Shilpi Majumdar)

(([email protected]; On X as @HoodieOnVeshti; +91-99017-77617;))

Feb 18 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS, LUFTHANSA GROUP, AND LUFTHANSA SYSTEMS COLLABORATE

• LSY AND INFOSYS WILL ESTABLISH A GLOBAL CAPABILITY CENTER IN BENGALURU

Source text: ID:nNSE10p6Zd

Further company coverage: INFY.NSLHAG.DE

(([email protected];))

MUMBAI, Feb 10 (Reuters) - The increasing use of generative artificial intelligence (GenAI) could boost the productivity of India's $254-billion software by 43%-45% over the next five years, according to a survey by consulting firm EY India.

This productivity boost, which EY India's survey states will span 500 roles, will come through the dual effect of the IT industry itself integrating elements of GenAI internally and as more client projects move from proof of concept to production.

Top IT companies such as Tata Consultancy Services TCS.NS and Infosys INFY.NS have highlighted the use of AI by clients to do new projects and EY India said 89% of them have started trialling GenAI projects, with 33% of those already in production.

"Enterprises are moving beyond experimentation to putting AI into production at scale. The rapid transition from POC to enterprise-wide adoption reflects the industry's confidence in AI's potential," Abhinav Johri, a technology consulting partner at EY India, said in a statement.

Within the sprawling IT industry, EY India's survey showed that roles in software development will get the biggest productivity boost, of roughly 60%, followed by a 52% improvement for BPO services and 47% for IT consulting.

This trio -- software development, BPO services and IT consulting -- will account for 50%-60% of the overall productivity improvement in tech services, the survey showed.

The increasing use of AI is not only helping the IT industry enhance customer service but is also lowering costs and improving revenue growth, according to executives surveyed by EY India.

(Reporting by Haripriya Suresh; Editing by Savio D'Souza)

(([email protected];))

Adds details, executive comment in paragraph 3,4

Feb 5 (Reuters) - Cognizant Technology Solutions CTSH.O forecast annual revenue below estimates on Wednesday, as uncertainty about the path of future interest rate cuts forces companies to temper spending on IT services and consultancy.

Persistent high capital costs continue to strain IT spending, prompting enterprises to rethink spending on consultancy services while prioritizing investments in AI-related projects.

Still, an increase in spending by clients in the financial services sector helped Cognizant win more large deals in the fourth quarter than a year earlier, powering its quarterly revenue above Wall Street expectations.

"In North America, we are seeing an improved pipeline of opportunities for transformation and modernization projects across both insurance and select ADRs of banking and financial services clients," finance chief Jatin Dalal said.

The company's fourth-quarter revenue stood at $5.08 billion, compared to analysts' expectations of $5.07 billion, according to data compiled by LSEG.

Cognizant's adjusted profit came in at $1.21 per share in the quarter ended December 31, compared with analysts' average estimate of $1.12 per share.

The New Jersey-based company said it expects first-quarter revenue in the range of $5 billion to $5.1 billion, compared with analysts' average estimate of $5.06 billion.

Cognizant expects its 2025 revenue to be between $20.30 billion and $20.80 billion, lower than estimates of $20.89 billion compiled by LSEG.

It projected 2025 adjusted earnings between $4.90 per share and $5.06 per share. The midpoint of the forecast is $4.98 per share, compared with analysts' average estimate of $4.99 per share.

(Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi)

(([email protected];))

Feb 5 (Reuters) - Cognizant Technology Solutions CTSH.O forecast annual revenue below estimates on Wednesday, as uncertainty about the path of future interest rate cuts forces companies to temper spending on IT services and consultancy.

Persistent high capital costs continue to strain IT spending, prompting enterprises to cut back on consultancy services while prioritizing investments in AI-related projects.

Cognizant's shares fell 1.2% in extended trading.

Uncertainty around rate cuts by the U.S. Federal Reserve this year is exacerbated by President Donald Trump's changes to immigration policies, tariffs and other initiatives, forcing companies to limit spending.

The company's fourth-quarter revenue stood at $5.08 billion, compared to analysts' expectations of $5.07 billion, according to data compiled by LSEG.

Cognizant's adjusted profit came in at $1.21 per share in the quarter ended December 31, compared with estimates of $1.12 per share.

The New Jersey-based company expects first-quarter revenue in the range of $5 billion to $5.1 billion, compared to analysts' estimates of $5.06 billion.

Cognizant expects its 2025 revenue to be between $20.3 billion and $20.8 billion, lower than estimates of $20.89 billion.

It projected 2025 adjusted earnings between $4.90 per share and $5.06 per share. The midpoint of the forecast is $4.98 per share, compared with estimates of $4.99 per share.

(Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi)

(([email protected];))