Dive Brief:
- Cognizant expects its healthcare business, via its acquisition of TriZetto Corp., to be a driving force for increased revenue in 2015. The technology firm also purchased Cadient Group, which provides digital marketing services for the healthcare industry.
- Revenue increased 43% to $879.1 million in the first quarter, almost a third of its total revenue. Shares rose 11% to a record high.
- The company raised its forecast for full-year adjusted profit to $2.93 per share from $2.91 and for revenue to at least $12.24 billion from $12.21 billion.
Dive Insight:
Cognizant also credits the Affordable Care Act as playing a role in its growing business. Moshe Katri, an analyst from Cowen & Company said in a statement that "the pharma segment is experiencing a spending recovery while the healthcare providers seem to be spending more, reflecting increased clarity on the [ACA]." Another analyst, Darrin Peller (Barclays) stated that companies with more exposure to healthcare and financial industries, along with strong digital offerings, are expected to enjoy "solid growth."