IT services provider Cognizant Technology Solutions Corp reported quarterly revenue and profit above analysts` expectations, helped by higher spending by clients in North America, especially in the healthcare and financial sectors.
Cognizant also raised its full-year revenue and adjusted profit forecasts for the second time this year.
The company said in May it expected its healthcare business to drive growth this year, helped by its acquisition of healthcare IT services provider TriZetto Corp and the implementation of the U.S. Affordable Care Act, or Obamacare.
Like its Indian rivals Tata Consultancy Services, and Infosys Ltd, Cognizant gets the largest chunk of its revenue from financial services clients.
But the company`s healthcare business, which accounts for nearly a third of revenue, has been the fastest growing for the past three quarters.
Revenue from the company`s healthcare business surged 39 percent to $897.3 million in the second quarter ended June 30.
Cognizant bought TriZetto Corp for $2.7 billion last year.
Revenue from the company`s financial services business rose 18.1 percent to $1.25 billion in the quarter.
The company raised its forecast for full-year adjusted profit to at least $3 per share from $2.93 and for revenue to at least $12.33 billion from $12.24 billion.
Analysts on average were expecting a profit $2.97 per share and revenue of $12.32 billion for the full year, according to Thomson Reuters I/B/E/S.
The company`s net income rose to $420.1 million, or 68 cents per share, in the second quarter, from $371.9 million, or 61 cents per share, a year earlier.
Excluding items, Cognizant earned 79 cents per share.
Revenue rose 22.6 percent to $3.09 billion.
Analysts on average had expected a profit of 73 cents per share and revenue of $3.03 billion.
