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Cognizant
🇺🇸 NASDAQ:CTSH
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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.

Total Revenue
$4.89B
Previous year: $4.91B
-0.4%
EPS
$1.1
Previous year: $1.14
-3.5%
Gross Profit
$1.66B
Previous year: $1.79B
-7.4%
Cash and Equivalents
$2.06B
Previous year: $1.77B
+16.2%
Free Cash Flow
-$32M
Previous year: $485M
-106.6%
Total Assets
$18B
Previous year: $17.3B
+4.1%

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 $4.89 - $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.
  • Full-year 2023 revenue decline of 0.9% to growth of 1.1%.
  • Full-year 2023 revenue decline of 1.0% to growth of 1.0% in constant currency.
  • Uncertainty in achieving the higher end of the guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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