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Sep 30, 2022
Cognizant Q3 2022 Earnings Report
Reported third quarter results with revenue below expectations due to company-specific fulfillment challenges and macroeconomic uncertainty.
Key Takeaways
Cognizant's Q3 2022 revenue reached $4.9 billion, a 2.4% year-over-year increase (5.6% in constant currency). The company's operating margin was 16.4%, up 100 basis points year-over-year. Bookings declined 2% year-over-year, resulting in a book-to-bill ratio of approximately 1.0x for the quarter and 1.2x for the trailing 12 months. The company revised its full-year 2022 revenue growth guidance to 4.5%, or 7.0% in constant currency.
Revenue of $4.9 billion grew 2.4% year-over-year, or 5.6% in constant currency.
Operating Margin and Adjusted Operating Margin of 16.4%, an increase of 100 and 60 basis points year-over-year, respectively.
Operating cash flow of $1,032 million and free cash flow of $953 million.
Revised full-year 2022 revenue growth guidance to 4.5%, or 7.0% in constant currency.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company provided the following guidance: •Fourth quarter revenue is expected to be $4.72-$4.77 billion, or a decline of 0.2%-1.2% (growth of 2.0%-3.0% in constant currency). •Full-year 2022 revenue is expected to be approximately $19.3 billion, or growth of 4.5% (7.0% in constant currency). •Full-year 2022 Adjusted Operating Margin2 is expected to expand 20 basis points to 15.6%.2 •Full-year 2022 Adjusted Diluted EPS2 is expected to be in the range of $4.43-$4.46.
Positive Outlook
- Fourth quarter revenue is expected to be $4.72-$4.77 billion, or a decline of 0.2%-1.2% (growth of 2.0%-3.0% in constant currency).
- Full-year 2022 revenue is expected to be approximately $19.3 billion, or growth of 4.5% (7.0% in constant currency).
- Full-year 2022 Adjusted Operating Margin is expected to expand 20 basis points to 15.6%.
- Full-year 2022 Adjusted Diluted EPS is expected to be in the range of $4.43-$4.46.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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