Cognizant Q1 2021 Earnings Report
Key Takeaways
Cognizant's Q1 2021 results showed revenue of $4.4 billion, a 4.2% increase year-over-year. Digital revenue grew by approximately 15% and now accounts for 44% of the total revenue. The company increased its 2021 revenue growth guidance to 7.0-9.0%.
Revenue of $4.4 billion grew 4.2% year-over-year (2.4% in constant currency).
~$700 million was deployed on acquisitions, share repurchases, and dividends in Q1 2021.
Digital revenue increased by ~15% year-over-year, representing 44% of the total revenue, up from 39% in the prior year period.
2021 revenue growth guidance was increased to 7.0-9.0%, or 5.6-7.6% in constant currency.
Cognizant
Cognizant
Cognizant Revenue by Segment
Cognizant Revenue by Geographic Location
Forward Guidance
The Company provided the following guidance: •Second quarter revenue is expected to be $4.42-$4.46 billion, or growth of 10.5-11.5% (8.0-9.0% in CC). This assumes an estimated positive 250 basis points foreign exchange impact. •Full year 2021 revenue is expected to be $17.8-$18.1 billion, or growth of 7.0-9.0% (5.5-7.5% in CC). This assumes an estimated positive 150 basis points foreign exchange impact. •Full year 2021 Adjusted Operating Margin2 is expected to be in the range of 15.2-15.7% •Full year 2021 Adjusted Diluted EPS2 is expected to be in the range of $3.90-$4.02
Positive Outlook
- Second quarter revenue is expected to be $4.42-$4.46 billion, or growth of 10.5-11.5% (8.0-9.0% in CC).
- Assumes an estimated positive 250 basis points foreign exchange impact for Q2 revenue.
- Full year 2021 revenue is expected to be $17.8-$18.1 billion, or growth of 7.0-9.0% (5.5-7.5% in CC).
- Assumes an estimated positive 150 basis points foreign exchange impact for full year revenue.
- Full year 2021 Adjusted Operating Margin is expected to be in the range of 15.2-15.7%
Revenue & Expenses
Visualization of income flow from segment revenue to net income