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Sep 30, 2021

Cognizant Q3 2021 Earnings Report

Reported strong results driven by robust demand and strategic investments

Key Takeaways

Cognizant reported strong Q3 2021 results with revenue of $4.7 billion, up 11.8% year-over-year. The company saw growth across all business segments, driven by digital revenue growth of 18% year-over-year. Bookings also grew strongly, up 24% year-over-year.

Revenue grew 11.8% year-over-year to $4.7 billion (11.0% in constant currency).

Digital revenue grew 18% year-over-year.

Q3 bookings grew 24% year-over-year, bringing year-to-date bookings growth to 13%.

The company expects full-year revenue growth of approximately 10% in constant currency.

Total Revenue
$4.74B
Previous year: $4.24B
+11.8%
EPS
$1.06
Previous year: $0.97
+9.3%
Gross Profit
$1.8B
Previous year: $1.6B
+12.6%
Cash and Equivalents
$1.66B
Previous year: $4.44B
-62.5%
Free Cash Flow
$897M
Previous year: $821M
+9.3%
Total Assets
$17.2B
Previous year: $18.8B
-8.3%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

The Company provided the following guidance: •Fourth quarter revenue is expected to be $4.75-$4.79 billion, or growth of 13.5-14.5% (13.3-14.3% in constant currency). •Full year 2021 revenue is expected to be approximately $18.5 billion, or growth of 11.1% ( 9.8% in constant currency). •Full year 2021 Adjusted Operating Margin2 is expected to be approximately 15.4%.2 •Full year 2021 Adjusted Diluted EPS2 is expected to be in the range of $4.02-$4.06.

Positive Outlook

  • Fourth quarter revenue is expected to be $4.75-$4.79 billion, or growth of 13.5-14.5% (13.3-14.3% in constant currency).
  • Full year 2021 revenue is expected to be approximately $18.5 billion, or growth of 11.1% ( 9.8% in constant currency).
  • Full year 2021 Adjusted Operating Margin is expected to be approximately 15.4%.
  • Full year 2021 Adjusted Diluted EPS is expected to be in the range of $4.02-$4.06.

Revenue & Expenses

Visualization of income flow from segment revenue to net income