According to Cognizant, its 2023 revenue projections are projected to be lower. This emphasises the current difficulties the business is facing, especially given that the US accounts for the majority of its revenue. Cognizant will reduce costs by firing 3,500 workers and giving up millions of square feet of office space in order to address this.

"In the second quarter of 2023, we initiated the NextGen program aimed at simplifying our operating model, optimising corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment. The NextGen program is expected to impact approximately 3,500 employees or approximately 1 percent of our global workforce and will primarily be non-billable and corporate personnel," the company said in a statement.

Ravi Kumar S, the recently recruited CEO, has a challenging task ahead of him: turning the company around and out-competing industry giants like Accenture, TCS, and Infosys. Despite being listed in the US, the company's operations are primarily based in India.

For the entire year, Cognizant has forecast sales of $19.2–19.5 billion, or a decline of 1.2% to an increase of 0.8, or a decline of 1.0% to an increase of 1% in constant currency. The company forecasts revenue between $4.83 and $4.88 billion for the second quarter, a fall of 1.6% to 0.6% or a decline of 1% to flat in constant currency.

At 14.6%, Cognizant's margins are currently among the lowest in the IT sector, matching those of Tech Mahindra. The company forecasts an adjusted operating margin for the entire year to be between 14.2-14.7%.

In the first quarter of FY23, which Kumar handled for the most of the time, Cognizant outperformed analyst estimates. On January 12, he succeeded Brian Humphries, who had been "involuntarily terminated" as CEO. The industry is experiencing various challenges at the moment, including a change in leadership and a new chairman of the board.

On an annual basis, Cognizant's net profit increased by 3%, while sequential profit growth was 11.2 percent. The company's revenue came in at $4.81 billion, down 0.3% from the previous year but up 1.5% in constant currency. This exceeded the forecast's revenue estimate, which ranged from $4.71 to $4.76 billion