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Jun 30, 2024
Cognizant Q2 2024 Earnings Report
Delivered revenue above guidance, expanded adjusted operating margin, and maintained large deal momentum.
Key Takeaways
Cognizant reported Q2 2024 revenue of $4.85 billion, above the high end of their guidance range, with a GAAP EPS of $1.14 and an adjusted EPS of $1.17. The company's operating margin was 14.6%, and adjusted operating margin was 15.2%.
Revenue of $4.9 billion, above the high end of our guidance range; sequentially increased 1.9%, or 2.1% in constant currency
Operating margin of 14.6%, up from 11.8% in the second quarter of 2023, and Adjusted Operating Margin of 15.2%, which expanded 100 basis points year-over-year
Trailing 12-month bookings of $26.2 billion; book-to-bill of 1.4x
The Company repurchased 0.9 million shares for $63 million during the second quarter under its share repurchase program.
Forward Guidance
Third quarter revenue is expected to be $4.89 - $4.96 billion, a decline of 0.2% to an increase of 1.3%, or flat to an increase of 1.5% in constant currency. Full-year 2024 revenue is expected to be $19.3 - $19.5 billion, a decline of 0.5% to an increase of 1.0% as reported and on a constant currency basis. Full-year 2024 Adjusted Operating Margin is expected to be in the range of 15.3% to 15.5%, or 20 to 40 basis points of expansion. Full-year 2024 Adjusted EPS is expected to be in the range of $4.62 to $4.70.
Positive Outlook
- Third quarter revenue is expected to be $4.89 - $4.96 billion
- Full-year 2024 revenue is expected to be $19.3 - $19.5 billion
- Full-year 2024 Adjusted Operating Margin is expected to be in the range of 15.3% to 15.5%
- Full-year 2024 Adjusted EPS is expected to be in the range of $4.62 to $4.70
Challenges Ahead
- Third quarter revenue is expected to be a decline of 0.2% to an increase of 1.3%
- Full-year 2024 revenue is expected to be a decline of 0.5% to an increase of 1.0%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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