Cognizant withdraws FY20 revenue growth guidance amid coronavirus lockdown

Firm builds up war chest by drawing down $1.7 bn worth of revolving credit

Cognizant became the first IT services company to withdraw its annual revenue guidance for 2020 in light of the coronavirus disease (Covid-19)-induced global crisis and the resultant uncertainty in business outlook.
 

Though Accenture slashed its revenue guidance for the year, Cognizant’s action is an indicator of the severity of the crisis. Apart from withdrawing the guidance, the IT firm said it was also building up a war chest by increasing its cash and investment balance to tide over potential liquidity issues.
 

“The long-term fundamentals of our business remain strong. However, given the unprecedented nature of this crisis, uncertainty around its