Cognizant forecasts quarterly revenue below estimates on cautious IT spending

Cognizant Technology forecast quarterly revenue below Wall Street estimates on Wednesday, signaling cautious client spending on its IT services amid macroeconomic uncertainty, sending its shares down about 5% in premarket trading.

Discretionary spending remains challenged, limiting growth in some IT services, while ongoing cost optimization ‌efforts across ⁠industries ⁠are adding pressure on deal sizes and revenue expansion.