Hyderabad: Software giant Cognizant has decided to withdraw its financial guidance for the year. In a statement released on 9 April, the company said it is withdrawing its 2020 guidance that was provided on 5 February.

Financial or revenue guidance refers to the information that companies provide to shareholders regarding the projected future performance of the company. However, in the wake of the COVID-19 pandemic, several companies have withdrawn their financial guidance reports.

The US-based tech giant specified that the COVID-19 pandemic had affected the company's business. After Cognizant started work-from-home for its employees due to the health crisis, “delays in project fulfillment as delivery, particularly in India and the Philippines” has affected business, it said.

It also mentioned the reduced client demand, primarily in the travel and hospitality industries, which has also taken a toll. “Entering the second quarter, Cognizant expects the pandemic to further reduce client demand as its societal and economic impact causes broader disruptions across industries.

However, given the unprecedented nature of this crisis, uncertainty around its duration and its impact on our ability to forecast performance, the company is withdrawing its 2020 guidance that was provided on 5 February, 2020,” it said.

Cognizant has over two lakh employees in India. On 20 March, Accenture had cut its revenue guidance for the financial year 2020 to three to six per cent from its earlier six to eight per cent.

Amritha Mohan

Amritha Mohan is a reporter at the NewsMeter. Shortly after completing her Master's in Communication at the University of Hyderabad, she began teaching courses on media and culture as a guest lecturer at the Department of Journalism and Mass Communication, North-Eastern Hill University (NEHU), Shillong. Amritha has previously interned with news organisations such as Greater Kashmir and Newslaundry. A lover of travel and photography, she spends most of her time planning road trips to the North-East. Nothing makes her happier than a green turf and a team to play football with. She primarily reports on education, tech, human-interesting and critical features.

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