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Sep 30, 2024
Cognizant Q3 2024 Earnings Report
Revenue growth driven by strong performance in Health Sciences and Financial Services, with investments in AI-driven platforms resonating with clients.
Key Takeaways
Cognizant reported Q3 2024 revenue of $5.0 billion, a 3.0% increase year-over-year, with operating margin at 14.6%. The company signed six deals with total contract value exceeding $100 million each and completed the acquisition of Belcan.
Revenue reached $5.0 billion, up 3.0% year-over-year, hitting the high end of guidance.
Operating margin was 14.6%, flat sequentially and up 60 basis points year-over-year.
Trailing 12-month bookings totaled $26.2 billion, with a book-to-bill ratio of 1.3x.
Health Sciences grew by 7.8% year-over-year, and Financial Services saw a return to growth, increasing by 0.7%.
Forward Guidance
Cognizant expects Q4 2024 revenue to be $5.0 - $5.1 billion, representing a 5.1% to 7.1% growth, and narrows full-year 2024 revenue growth to 1.4% - 1.9% in constant currency. Full-year Adjusted Operating Margin is expected to be approximately 15.1%, with Adjusted Diluted EPS in the range of $4.63 to $4.67.
Positive Outlook
- Fourth quarter revenue is expected to be $5.0 - $5.1 billion, growth of 5.1% to 7.1%
- Full-year 2024 revenue is expected to be $19.7 - $19.8 billion, growth of 1.6% to 2.1%.
- Full-year 2024 Adjusted Operating Margin is expected to be approximately 15.1%, flat year-over-year.
- Full-year 2024 Adjusted Diluted EPS is expected to be in the range of $4.63 to $4.67.
- Assumes approximately 200 basis points of inorganic contribution.
Historical Earnings Impact
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