Cognizant Technology Solutions Corp (CTSH) shares tumbled 5.61% in pre-market trading on Wednesday after the company reported its second-quarter financial results, which revealed an operating margin of 15.9% that may have fallen short of investor expectations.
The company also provided a fiscal year adjusted earnings per share outlook of $5.70 to $5.82, compared to the IBES estimate of $5.71. While the midpoint of the guidance range modestly exceeded consensus, the operating margin figure appeared to weigh on sentiment, triggering the sell-off.
The sharp decline highlights market sensitivity to margin performance in the IT services sector, even as forward earnings guidance remains near consensus levels.
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