UPDATE: Cognizant Posts Higher Q2 Profit, Cuts Revenue Growth Forecast

Cognizant Technology Solutions

reported a rise in its second-quarter profit. However, the company lowered its revenue growth outlook. The Teaneck, New Jersey-based company's quarterly net income surged to $371.9 million, or $0.61 per share, versus a year-ago profit of $300.4 million, or $0.49 per share. Its non-GAAP earnings jumped to $0.66 per share from $0.58 per share. Its revenue climbed 16.5% to $2.52 billion from $2.16 billion. However, analysts were expecting earnings of $0.58 per share on revenue of $2.52 billion. Cognizant's non-GAAP operating margin came in at 21.0%, versus the company's forecast of 19% to 20%. Cognizant's board raised its repurchase program by $500 million to $2.0 billion. The company expects Q3 non-GAAP EPS of at least $0.63 on revenue of $2.55 billion to $2.58 billion. Analysts expected Q3 revenue of $2.66 billion. For the year, it lowered its revenue growth outlook to at least 14% versus 16.5%. "Due to weakness at certain clients and longer than anticipated sales cycles for certain large integrated deals, we are adopting a more conservative stance for the remainder of the year and revising our 2014 revenue guidance to growth of at least 14% over the prior year, while maintaining our full year non-GAAP EPS guidance of $2.54," said Francisco D'Souza, Chief Executive Officer of Cognizant. Cognizant shares fell 9.86% to $45.05 in pre-market trading.