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Dec 31, 2019

Cognizant Q4 2019 Earnings Report

Announced fourth quarter and full year 2019 results.

Key Takeaways

Cognizant reported Q4 2019 revenue of $4.3 billion, a 3.8% increase year-over-year. The company's GAAP diluted EPS was $0.72, while adjusted diluted EPS was $1.07. Net income for the quarter was $395 million.

Quarterly revenue increased to $4.3 billion, up 3.8% from the year-ago quarter.

GAAP operating margin was 14.6% compared to 16.8% in the year-ago quarter.

Net income was $395 million compared to $648 million in the year-ago quarter.

Quarterly GAAP diluted EPS was $0.72 compared to $1.12 in the year-ago quarter.

Total Revenue
$4.28B
Previous year: $4.13B
+3.8%
EPS
$1.07
Previous year: $1.13
-5.3%
Gross Profit
$1.54B
Previous year: $1.59B
-3.4%
Cash and Equivalents
$2.65B
Previous year: $1.16B
+127.8%
Free Cash Flow
$845M
Previous year: $606M
+39.4%
Total Assets
$16.2B
Previous year: $15.8B
+2.3%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

The Company is providing the following guidance: â–ªFirst quarter 2020 year-over-year revenue growth in the range of 2.8-3.8% in constant currency2 which includes our estimate of a negative 60 basis points impact from the exit of certain content services business. â–ªFull year 2020 year-over-year revenue growth in the range of 2.0-4.0% in constant currency2 which includes our estimate of a negative 110 basis points impact from the exit of certain content services business. â–ªFull year 2020 Adjusted Operating Margin3 expected to be in the range of 16.0-17.0%. â–ªFull year 2020 Adjusted Diluted EPS3 expected to be in the range of $3.97-4.13.

Revenue & Expenses

Visualization of income flow from segment revenue to net income