Cognizant: Former Infosys President Ravi Kumar To Join As CEO; Lowers Earnings Guidance

(RTTNews) - Cognizant (CTSH) announced that its Board has named Ravi Kumar as CEO and a member of the Board, effective immediately. Kumar succeeds Brian Humphries. Humphries will remain with the company as a special advisor until March 15, 2023.

Kumar served as President at Infosys until October 2022, leading the Infosys Global Services Organization across all global industry segments.

Cognizant also announced that Stephen Rohleder, a member of Board since March 2022, has been elected Chair of the Board. Former Chair Michael Patsalos-Fox will remain on the Board as an independent director. Cognizant also announced that Surya Gummadi has been named President, Cognizant Americas.

For 2022, Cognizant now expects revenue of approximately $19.4 billion, revised from prior expectations of $19.3 billion. This reflects a growth of approximately 5.0%, or 7.5% in constant currency, for full-year 2022. The company now expects 2022 adjusted operating margin of approximately 15.3%, compared to prior guidance of 15.6%. The company now expects full-year 2022 adjusted EPS of approximately $4.38-$4.40, compared to prior guidance of $4.43-$4.46.

The company said the updated guidance includes a negative impact from the impairment of certain capitalized costs related to a large volume-based contract with a Health Sciences customer.

Cognizant now expects fourth quarter revenue of approximately $4.8 billion, compared to prior expectations of $4.72-$4.77 billion. This reflects a year-over-year increase of approximately 1.3% or, 4.1% in constant currency, for the fourth quarter.