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Cognizant
🇺🇸 NASDAQ:CTSH
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OverviewEarningsDividends
•
Mar 31, 2024

Cognizant Q1 2024 Earnings Report

Revenue declined slightly, but exceeded guidance, with adjusted operating margin expanding due to the NextGen program.

Key Takeaways

Cognizant's Q1 2024 revenue was $4.76 billion, a 1.1% year-over-year decrease. The adjusted operating margin expanded by 50 basis points to 15.1%. The company signed eight deals with a total contract value of at least $100 million each and returned $284 million to shareholders through share repurchases and dividends.

Revenue of $4.8 billion declined 1.1% year-over-year, exceeding the high-end of guidance.

Operating margin was 14.6%, flat year-over-year; adjusted operating margin expanded 50 basis points to 15.1%.

Trailing 12-month bookings reached $25.9 billion, with a book-to-bill ratio of 1.3x.

The company returned $284 million to shareholders through share repurchases and dividends.

Total Revenue
$4.76B
Previous year: $4.81B
-1.1%
EPS
$1.12
Previous year: $1.11
+0.9%
Gross Profit
$1.48B
Previous year: $1.67B
-11.1%
Cash and Equivalents
$2.24B
Previous year: $2.46B
-8.7%
Free Cash Flow
$16M
Previous year: $631M
-97.5%
Total Assets
$18.4B
Previous year: $18.1B
+1.4%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

Cognizant anticipates Q2 2024 revenue to be between $4.75 - $4.82 billion, a decline of 2.9% to a decline of 1.4%, or a decline of 2.5% to a decline of 1.0% in constant currency. Full-year 2024 revenue is expected to be $18.9 - $19.7 billion, a decline of 2.2% to growth of 1.8% as reported, or a decline of 2.0% to growth of 2.0% in constant currency. Full-year 2024 Adjusted EPS is expected to be in the range of $4.50 to $4.68.

Positive Outlook

  • Second quarter revenue is expected to be $4.75 - $4.82 billion.
  • Full-year 2024 revenue is expected to be $18.9 - $19.7 billion.
  • Full-year 2024 revenue is expected to decline 2.2% to growth of 1.8%.
  • Full-year 2024 revenue is expected to decline of 2.0% to growth of 2.0% in constant currency.
  • Full-year 2024 Adjusted EPS is expected to be in the range of $4.50 to $4.68.

Challenges Ahead

  • Second quarter revenue is expected to decline of 2.9% to a decline of 1.4%.
  • Second quarter revenue is expected to decline of 2.5% to a decline of 1.0% in constant currency.
  • Full-year 2024 revenue is expected to decline 2.2%.
  • Full-year 2024 revenue is expected to decline of 2.0% in constant currency.
  • Assumes up to 100 basis points of inorganic contribution.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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