IT services provider Cognizant Technology Solutions Corp forecast current-quarter revenue and profit below analysts' estimates, as clients worldwide cut back on routine IT services spending.
Shares of the company, which also reported its first revenue miss in six quarters, fell 4 percent in premarket trading on Monday.
Cognizant forecast adjusted profit between 78-80 cents per share and revenue of $3.18 billion-$3.24 billion for the three months ending March.
Analysts on average were expecting a first-quarter profit of 81 cents per share and revenue of $3.32 billion.
Cognizant's revenue rose 17.9 percent to $3.23 billion in the fourth quarter ended Dec. 31.
The company's net income rose to $423.4 million, or 69 cents per share, from $362.9 million, or 59 cents per share, a year earlier.
Excluding items, the company earned 80 cents per share.
Analysts on average had expected a profit of 78 cents per share and revenue of $3.24 billion, according to Thomson Reuters I/B/E/S. (Reporting by Abhirup Roy in Bengaluru; Editing by Sriraj Kalluvila)