Chief Executive Officer at Cognizant Technology Solutions
Thank you, Tyler. Good afternoon, everyone. Thanks to our talented employees, we delivered on our first quarter commitments in what continues to be an intensely competitive global labor market. First quarter revenue was $4.8 billion, up 10.9% year-over-year in constant currency, above the midpoint of our first quarter guidance of 10.2% to 11.2% growth. Growth was led by digital, which grew 20% year-over-year and now represents 50% of our revenue. We had another exceptional quarter in digital business operations, which continues to meaningfully outgrow the BPO market reflecting momentum in intelligent process automation and digital native clients.
First quarter operating margin was 15%, down slightly sequentially as expected, reflecting seasonality. First quarter bookings growth of 4% was in line with our expectations following exceptional bookings growth in the fourth quarter. On a trailing 12-month basis, we have a robust book-to-bill ratio of greater than 1.2x revenue reflecting bookings of over $23 billion. Given a healthy pipeline, we anticipate bookings growth acceleration in the second quarter and for the full year.
Over the last three months, I've met employees, partners and clients across 4 continents. While the global economic environment is uncertain, based on these interactions, I remain optimistic about IT services industry demand for the foreseeable future. Clients are making the shift to digital operating models to become more agile, automated and innovative. They know that it is the only way to deliver customer-centric user experience and hyper personalization, to simplify complex workflows and to build a modern operating infrastructure that's
Our strategic repositioning enables us to engage more deeply with clients, helping them to succeed and supports our growth trajectory. Our capabilities are in strong demand as digital becomes mainstream. Ultimately, I believe that our scale in India, complemented by our growing global delivery network, will differentiate us as clients seek talent and business stability.
Meanwhile, the labor market continues to be attrition, demand supply imbalances and inflationary pressure. I'd like to thank our teams across the globe for their leadership, patience and engagement as we navigate these challenges and execute against our client commitments.
Today, more than ever, employees demand that we invest not just in total rewards, including compensation, but also in the end-to-end employee experience, their skilling and career advancement. Cognizant has always been known for our investment in our people. And in the last year, we built in this legacy with accelerated skilling and enhancements to our promotion framework.
First quarter voluntary attrition fell five points to 26% on an annualized basis or 29% on a trailing 12-month basis. While we made sequential progress reducing voluntary attrition for the second consecutive quarter, we anticipate attrition will remain elevated for the full year and will increase in the second quarter, reflecting seasonality. To mitigate labor cost increases and the investments we are making in our people, we continue to execute against a series of measures including our automation agenda, pyramid and shoring optimization and a deep pricing.
Turning to the industry segments. In Financial Services, our ongoing recovery continue with growth of 6% year-over-year in constant currency reflecting the sale of our Samlink subsidiary in February, continue to make progress repositioning the business towards higher growth and higher value services and solutions with a more focused client set. We expect to pace recovery in banking and insurance to continue with strong demand for digital transformation.
One client whose digital transformation journey we've been supporting is ABN AMRO Clearing Bank. We are transforming the bank's IT landscape into a hybrid cloud platform with a focus on security and regulatory compliance. We'll be implementing an end-to-end secure, scalable and compliant infrastructure as a service model in support of the bank's IT modernization agenda.
In health care, revenue grew 9% year-over-year in constant currency, with particularly strong growth in Life Sciences. Our investments to modernize the TriZetto product portfolio, which includes the integration of AI and machine learning capabilities continued to pay off. Our clients are responding to our commitment to deliver next-generation platform solutions that help them offer patients real-time insights and personalized care.
We're keeping our products cutting edge, building new solutions across the value chain and capitalizing on the opportunity at the intersection of health and digital in areas such as virtual care and telehealth. During the first quarter, we announced our collaboration with Microsoft to deliver a new digital health solution designed to improve medical care. Leveraging Microsoft Cloud for Healthcare, our new solution is the first of several planned offerings that combine remote patient monitoring and virtual health using products like smart watches, blood pressure monitors and glucose meters to collect and communicate patient health data to providers.
Wellmark Blue Cross and Blue Shield, a leading health insurer with more than 2 million members is a great example of how we're partnering with AWS to drive digital transformation. Wellmark aims to improve the experience of their stakeholders by accelerating cloud migration and data modernization, all while strengthening their information security.
In Products and Resources, we continue to see excellent growth in client success across travel and hospitality and in manufacturing, logistics, energy and utilities. Automation is top of mind for clients like Pacific Gas and Electric, which sought our help to realize their vision for a new digital productivity center of excellence that aims to reduce manual efforts, simplify their automation tools and provide agile and scalable solutions for their business and IT users.
To that end, our IPA team helped deploy Microsoft Power platform and simplified our tool sets with Cognizant Neuro, our recently announced intelligent automation fabric. PG&E is now well on its way to saving 1 million hours of work through low code, no code automation.
Finally, in Communications, Media and Technology, we saw continued strength in technology, where we've sustained double-digit growth over the last 4 quarters. I'd like to briefly switch gears now to the future of work, a universal topic amongst the C-Suite with enduring societal implications. Organizations around the world are deliberating how to best attract, engage and retain employees. The events of the past few years have prompted people worldwide to question their life and work choices, including how and where they work. In the meantime, executive teams are determining how to best nurture company culture and values in the face of today's labor market realities and a hybrid work environment. These socioeconomic questions also intersect with business practicalities such as real estate strategy, one of the many things we are currently reviewing.
One of the prominent business themes of our time is the relationship between purpose and work. Purpose encompasses all the values that drive people's choices, actions and attitudes from wider social and environmental goals to professional and personal objectives such as a healthy work-life balance. That's 1 reason we put so much time, thought and energy into developing and activating a compelling purpose, vision and set of values for our company, which express our commitment to making a positive impact on the environment and the wider society.
We continue to advance our ESG agenda, applying our knowledge, portfolio and partnerships to engineer new levels of environmental and social benefits for our company, clients and communities. In April, we announced that we will source 100% renewable energy for all our global offices and facilities by the end of 2026. Sourcing 100% renewable energy supports our goal, and as last year, to achieve net zero greenhouse gas emissions by 2030 and responds to client expectations that business transition to a low-carbon economy.
We also want our employees, clients, partners and other stakeholders to better understand today's Cognizant, which is why during the first quarter, we modernized and reintroduced our brand to mirror the company we've become, the services leader with world-class digital solutions and talent. Our brand now carries the tagline, Intuition Engineered. This is our promise to engineer clients' businesses so they can anticipate and meet their customers' needs with the insight and speed of intuition.
As a global company, we will always stand with the right of people to choose a path of self-determination and democracy. Wave humanitarian relief efforts for Ukraine, Cognizant contributed $1 million in grants to several organizations that are delivering food, water, shelter, health care and economic assistance. We joined the international community in hoping that a path to lasting peace can be found soon.
In closing, I believe we're strategically well positioned to capture a large growing addressable market and drive profitable revenue growth. A month ago, I marked my third year anniversary leading Cognizant. While we are a company in transition, our evolution has been significant across multiple dimensions. We're putting the company on a strong growth trajectory, and I'm optimistic about Cognizant's prospects as we bolster our portfolio judiciously, to not only build and run clients' technology foundations but also transform their enterprises into modern businesses.
And with that, I'll turn the call over to Jan, who will cover the details of the quarter and our financial outlook before we take your questions. Jan, over to you.