Cognizant Q2 2022 Earnings Report
Key Takeaways
Cognizant reported Q2 2022 results with revenue of $4.9 billion, a 7.0% year-over-year increase, and an operating margin of 15.5%. The company focused on client commitments and balanced financial results amidst unprecedented labor market conditions.
Revenue grew 7.0% year-over-year, or 9.5% in constant currency.
Operating Margin increased to 15.5%, up 30 basis points year-over-year.
Over $1.0 billion was deployed on share repurchases and dividends year-to-date.
Operating cash flow was $528 million and free cash flow was $485 million.
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 $4.98-$5.03 billion, or growth of 5.0%-6.0% (7.5%-8.5% in constant currency). •Full-year 2022 revenue is expected to be $19.7-$19.9 billion, or growth of 6.3%-7.3% (8.5%-9.5% in constant currency). •Full-year 2022 Adjusted Operating Margin3 is expected to expand 20 basis points to 30 basis points to 15.6% - 15.7%.3 •Full-year 2022 Adjusted Diluted EPS3 is expected to be in the range of $4.51-$4.57.
Positive Outlook
- Third quarter revenue is expected to be $4.98-$5.03 billion.
- Third quarter revenue growth of 5.0%-6.0% (7.5%-8.5% in constant currency).
- Full-year 2022 revenue is expected to be $19.7-$19.9 billion.
- Full-year 2022 revenue growth of 6.3%-7.3% (8.5%-9.5% in constant currency).
- Full-year 2022 Adjusted Diluted EPS is expected to be in the range of $4.51-$4.57.
Revenue & Expenses
Visualization of income flow from segment revenue to net income