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Sep 30, 2020

Cognizant Q3 2020 Earnings Report

Announced third quarter 2020 financial results.

Key Takeaways

Cognizant's Q3 2020 revenue was $4.2 billion, a decrease of 0.1% year-over-year. GAAP diluted EPS was $0.64, while Adjusted Diluted EPS was $0.97. The company returned over $800 million to shareholders through share repurchases and dividends.

Revenue of $4.2 billion, down 0.1% (0.7% in constant currency) including a negative 130 basis points impact from the exit of certain content services

GAAP operating margin was 14.2% vs. 15.7% in the prior year period while GAAP diluted EPS was $0.64, including a negative one-time tax impact of $0.26 per share, vs. $0.90 in the prior year period

Adjusted Operating Margin was 15.9% vs.17.3% in the prior year period while Adjusted Diluted EPS was $0.97 vs. $1.08 in the prior year period

Year-to-date cash flow from operations of $2.4 billion and free cash flow of $2.1 billion

Total Revenue
$4.24B
Previous year: $4.25B
-0.1%
EPS
$0.97
Previous year: $1.08
-10.2%
Gross Profit
$1.6B
Previous year: $1.57B
+1.9%
Cash and Equivalents
$4.44B
Previous year: $2.34B
+89.3%
Free Cash Flow
$821M
Previous year: $620M
+32.4%
Total Assets
$18.8B
Previous year: $15.8B
+18.6%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

Full year 2020 revenue expected to be approximately $16.7 billion, or a decline on a constant currency basis of 0.4%. Full year 2020 Adjusted Operating Margin expected to be approximately 15%. Full year 2020 Adjusted Diluted EPS expected to be in the range of $3.63-3.67

Revenue & Expenses

Visualization of income flow from segment revenue to net income