Shares of Cognizant Technology Solutions Corp (NASDAQ:CTSH) hit a nine month high after the company confirmed its full year estimates and announced an increase in the buyback program, reports Bloomberg.

Cognizant Technology Solutions

The stocks of the consulting and outsourcing services provider were up 4.2 percent to $67.60 in New York in the morning trading session after the announcement of the results. The shares recorded their highest intraday gain since August 6th and were up 4.9 percent during the session. Until yesterday, the stock declined 12 percent this year. On Tuesday, stocks of the IT services firm closed at $64.88, and for the past three months the shares are down 18 percent.

“Our performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services,” Chief Executive Officer Francisco D’Souza said in a statement.

Shares of the IT company took a beating last month after reports that the U.S. Senate Judiciary Committee is considering a proposal on immigration that could possibly hurt the Indian outsourcing firm’s businesses operating in the United States. The draft considered by the senate could limit the number of executives sent by Indian companies like Infosys Ltd (NYSE:INFY) (NSE:INFY) and Tata Consultancy Services Limited (NSE:TCS), to work for their US clients. US rival firms International Business Machines Corp. (NYSE:IBM) and Accenture Plc (NYSE:ACN) are in full support of the draft.

According to analysts about 65 percent of Cognizant Technology Solutions Corp (NASDAQ:CTSH)’s employees working in United States are on on H-1B or L-1 visas, or work permits.

Quarterly Performance

The New Jersey-based firm reaffirmed its annual revenues to rise by a minimum of 17 percent to $8.6 billion. The sales growth of the company was impressive helped by its customer relationships, says the company. The outsourcing firm increased its share buyback program by $500 million to $1.5 billion.

For the quarter, the company posted a profit of $284.2 million, or 93 cents a share compared to $243.7 million, or 79 cents a share, a year earlier. Revenues for the quarter were up 18 percent to $2.02 billion. Segment wise, financial services segment revenue was up 23 percent and healthcare by 9.1 percent. However, operating margin for the company reported a decline to 18.1 percent from 18.6 percent owing to a rise in input costs by 22 percent. During the quarter, the consulting firm added about 6,000 employees.