Shares of Cognizant Technology Solutions Corp. CTSH fell 0.5% in premarket trading Thursday, after the business consultant cut its profit outlook and said Chief Executive Brian Humphries will step down after four years in the role, and will be succeeded by Ravi Kumar, effective Immediately. Humphries will remain as special advisor until March 15. “The Board is focused on positioning Cognizant to reaccelerate growth and drive shareholder value,” said Chairman Stephen Rohleder. “As a proven leader with deep experience developing global talent and building a culture of success, we believe Ravi is the right person to take Cognizant into its next phase of growth.” Kumar was previously a 20-year veteran of Infosys Ltd., and most recently president of Infosys through October 2022. Separately, the company said it expects fourth-quarter revenue of $4.8 billion, up from previous guidance of $4.72 billion to $4.77 billion, but cut its guidance for adjusted earnings per share to $4.38 to $4.40 from $4.43 to $4.46. Cognizant will report results on Feb. 2. The stock has gained 8.4% over the past three months through Wednesday while the S&P 500 SPX has advanced 11.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.