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Jun 30, 2021

Cognizant Q2 2021 Earnings Report

Delivered strong results driven by improved demand and digital momentum.

Key Takeaways

Cognizant reported a strong second quarter with revenue of $4.6 billion, a 14.6% year-over-year growth. The company increased its full-year 2021 revenue growth guidance to 10.2-11.2%.

Revenue of $4.6 billion grew 14.6% year-over-year (12.0% in constant currency).

Digital revenue grew approximately 20% year-over-year.

$1.5 billion deployed on acquisitions, share repurchases and dividends year-to-date.

2021 revenue growth guidance increased to 10.2-11.2%, or 9.0-10.0% in constant currency

Total Revenue
$4.59B
Previous year: $4B
+14.6%
EPS
$0.99
Previous year: $0.82
+20.7%
Gross Profit
$1.72B
Previous year: $1.39B
+24.3%
Cash and Equivalents
$1.37B
Previous year: $4.42B
-69.1%
Free Cash Flow
$466M
Previous year: $886M
-47.4%
Total Assets
$16.8B
Previous year: $18.2B
-7.6%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

The Company provided the following guidance: •Third quarter revenue is expected to be $4.69-$4.74 billion, or growth of 10.6-11.6% (10.0-11.0% in CC). •Full year 2021 revenue is expected to be $18.4-$18.5 billion, or growth of 10.2-11.2% (9.0-10.0% in CC). •Full year 2021 Adjusted Operating Margin2 is expected to be approximately 15.4%. •Full year 2021 Adjusted Diluted EPS2 is expected to be in the range of $4.00-$4.06.

Revenue & Expenses

Visualization of income flow from segment revenue to net income