Cognizant Technology Solutions, a prominent IT services provider, reported a 0.3% decrease in constant currency revenue for the full year 2023, amounting to $19.4 billion, reflecting ongoing challenges in the IT sector.

For the December quarter, the company's revenue stood at $4.8 billion, marking a 2.4% decline in constant currency terms compared to the same period last year. This represents the lowest quarterly revenue Cognizant has recorded in the past eight quarters, given its adherence to calendar year accounting practices.

Notably, Cognizant's revenue performance in the quarter lagged behind that of its peers such as Infosys, TCS, and HCLTech. While Infosys reported a 1% decrease in revenue in constant currency terms, TCS witnessed a 1.7% growth, and HCLTech achieved over 4% growth.

The company's top verticals, financial services, and healthcare, experienced year-on-year revenue declines of 6.6% and 2.7%, respectively. However, there was a silver lining as quarterly net income rose to $558 million in the quarter ending December 2023, up from $521 million in the same period the previous year. This increase in net income can be attributed to the positive impact of the company's cost optimization program, NextGen, which began to yield results.

Despite this improvement in net income, Cognizant remains cautious about the future, anticipating continued headwinds. As the company primarily operates in North American and European markets, it expects ongoing challenges in these regions to persist, influencing its revenue outlook.

In summary, Cognizant's recent financial performance underscores the broader challenges faced by the IT sector, with revenue declines reflecting the prevailing market conditions.