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Jun 30, 2020

Cognizant Q2 2020 Earnings Report

Reported second quarter results with revenue of $4.0 billion.

Key Takeaways

Cognizant reported a solid second quarter performance, with revenue of $4.0 billion, despite facing unprecedented challenges due to the COVID-19 pandemic and a ransomware attack. The company is focused on investing in clients and associates and executing its digital strategy.

Revenue of $4.0 billion, down 3.4% (2.5% in constant currency) including a negative 210 basis points impact from the exit of certain content services business and the ransomware attack

GAAP operating margin was 11.7% vs. 14.9%

Net income was $361 million vs. $509 million

First half 2020 bookings increased 14%

Total Revenue
$4B
Previous year: $4.14B
-3.4%
EPS
$0.82
Previous year: $0.94
-12.8%
Gross Profit
$1.39B
Previous year: $1.51B
-8.4%
Cash and Equivalents
$4.42B
Previous year: $1.66B
+166.4%
Free Cash Flow
$886M
Previous year: $479M
+85.0%
Total Assets
$18.2B
Previous year: $15.5B
+17.4%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

Full year 2020 revenue expected to be in the range of $16.4-16.7 billion, or a decline on a constant currency basis of 2.0-0.5%. Full year 2020 Adjusted Operating Margin expected to be approximately 15%. Full year 2020 Adjusted Diluted EPS expected to be in the range of $3.48-3.58

Revenue & Expenses

Visualization of income flow from segment revenue to net income