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Jun 30, 2023
Cognizant Q2 2023 Earnings Report
Reported a slight revenue decrease and strong bookings growth.
Key Takeaways
Cognizant's Q2 2023 results showed a slight revenue decline of 0.4% year-over-year but a strong 17% year-over-year growth in bookings. The company reaffirmed its full-year 2023 revenue growth and Adjusted Operating Margin guidance.
Revenue declined 0.4% year-over-year, and 0.1% in constant currency.
Bookings grew 17% year-over-year, with a record trailing 12-month bookings of $26.4 billion.
Year-to-date operating cash flow was $765 million, and free cash flow was $599 million.
Returned $700 million to shareholders year-to-date through share repurchases and dividends.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company provided the following guidance: Third quarter revenue is expected to be $4.89 - $4.94 billion, growth of 0.6% to 1.6%, or a decline of 0.5% to growth of 0.5% in constant currency. Full-year 2023 revenue is expected to be $19.2 - $19.6 billion, or a decline of 0.9% to growth of 1.1%, or a decline of 1.0% to growth of 1.0% in constant currency. Full-year 2023 Adjusted Operating Margin is expected to be in the range of 14.2% to 14.7%. Full-year 2023 Adjusted EPS is expected to be in the range of $4.25 to $4.48.
Positive Outlook
- Third quarter revenue is expected to be $4.89 - $4.94 billion.
- Third quarter revenue growth of 0.6% to 1.6%.
- Third quarter constant currency growth of -0.5% to 0.5%.
- Full-year 2023 Adjusted Operating Margin is expected to be in the range of 14.2% to 14.7%.
- Full-year 2023 Adjusted EPS is expected to be in the range of $4.25 to $4.48.
Challenges Ahead
- Third quarter revenue decline of 0.5% to growth of 0.5% in constant currency.
- Full-year 2023 revenue is expected to be $19.2 - $19.6 billion.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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