US-based IT company Cognizant said it expects revenue to grow 8-11% in annual constant currencies over the 2022-24 period.
Discussing its growth strategy and outlook during an investor briefing, Cognizant said it expects to experience constant currency income growth of 8-11% annually during 2022-2024 and an increase in the annual operating margin of 20 to 40 basis points.
Cognizant expects to end 2021 with revenue of $ 18.5 billion. He said organic revenue is expected to generate over 75% of growth in 2022-24, and revenue growth in 2022 is expected to be towards the high end of the multi-year outlook.
âWe continue to make great strides in positioning the business for sustained revenue growth and margin expansion,â said Brian Humphries, CEO of Cognizant.
By executing a growth strategy, which includes strengthening the digital portfolio, partnerships and business engine, while investing in a global distribution network, people and capabilities, Cognizant can help clients with their most strategic initiatives while along their journey of transformation, he added.
âI am excited about the global opportunities that present themselves to accelerate our growth, increase our margins and deliver long-term added value for shareholders,â he said.
It has invested $ 2.5 billion in digital M&A acquisitions since 2019.
As part of the event, CFO Jan Siegmund shared additional details on Cognizant’s updated financial framework and capital deployment priorities, including that 50% of free cash flow should be spent on acquisitions. strategic, 25% to share buybacks and 25% to dividends.
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