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Cognizant Technology Solutions announced on Tuesday that it has successfully completed the acquisition of Belcan, a global engineering services firm, in a deal valued at approximately $1.3 billion in cash and stock. The acquisition is anticipated to have a major effect on the company’s financial performance and market positioning.
Following the completion of the acquisition, Cognizant has updated its financial guidance for the third quarter of 2024. The company now projects Q3 revenue to be between $4.95 billion and $5.02 billion, marking an increase of 1.1% to 2.6% from its previous forecast.
For the full year 2024, Cognizant has revised its earnings expectations. The company now anticipates adjusted earnings per diluted share in the range of $4.56 to $4.64, a slight reduction from its earlier guidance of $4.62 to $4.70. Analysts surveyed by Capital IQ had projected earnings of $4.65 per share. Furthermore, Cognizant has revised its full-year revenue forecast to approximately $19.5 billion to $19.8 billion, representing a 0.9% to 2.4% increase from the previous range. This revision is also influenced by the recent acquisition, with analysts having previously projected $19.47 billion in revenue.
In reaction to the announcement, shares of Cognizant Technology Solutions saw a decline of 1.3% in premarket trading on Tuesday. The company’s updated guidance indicates a strategic move to incorporate Belcan’s capabilities and enhance its service offerings, although short-term stock performance has been slightly affected.