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UPDATE 1-Cognizant's profit beats on lower income tax

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Aug 3 (Reuters) - Cognizant Technology Solutions Corp reported a better-than-expected quarterly profit on Thursday, as the IT services provider benefited from lower income tax compared with the year-ago period.

The company's net income rose 86.5 percent to $470 million, or 80 cents per share, from $252 million, or 41 cents per share, a year earlier.

Cognizant said its subsidiary in India repurchased shares valued at $2.8 billion from its shareholders in May last year.

As a result of the transaction, the company said it took an income tax expense of $190 million in the year-ago period.

Revenue rose nearly 9 percent to $3.67 billion, boosted by strong demand for its cloud-based services from its financial and healthcare clients.

Revenue from its financial services sector, which accounts for more than a third of its total revenue, rose 4.1 percent, and revenue from healthcare services rose 9.5 percent in the second quarter.

Excluding items, the company earned 93 cents per share, beating the analysts' estimate of 90 cents, according to Thomson Reuters I/B/E/S.

(Reporting by Rishika Sadam in Bengaluru; Editing by Arun Koyyur)