Cognizant Technology Solutions Corp (CTSH) saw its shares plunge 12.96% in after-hours trading on Wednesday, despite reporting better-than-expected second-quarter earnings. The dramatic selloff appears to be driven by concerns over the company's future guidance and slowing growth rates.

For the second quarter, Cognizant reported adjusted earnings per share of $1.31, surpassing the IBES estimate of $1.26. Revenue also beat expectations, coming in at $5.25 billion compared to the estimated $5.19 billion. The company's adjusted operating margin stood at 15.6%, showing some resilience in profitability.

However, investors seem to be focusing on Cognizant's forward-looking statements. The company's full-year revenue guidance of $20.7 billion to $21.1 billion and adjusted EPS forecast of $5.08 to $5.22 may have fallen short of market expectations. Additionally, the projected third-quarter revenue range of $5.27 billion to $5.35 billion suggests a potential slowdown in growth momentum, which could be contributing to the negative market reaction. The sharp stock decline indicates that shareholders are reassessing Cognizant's growth prospects in an increasingly challenging macroeconomic environment.