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Dec 31, 2020

Cognizant Q4 2020 Earnings Report

Announced fourth quarter and full year 2020 financial results.

Key Takeaways

Cognizant reported Q4 revenue of $4.2 billion and full-year revenue of $16.7 billion. The company's Q4 results were impacted by the anticipated exit from a customer engagement and the exit from certain content services. The company provided 2021 revenue growth guidance of 5.5% to 8.5%.

Q4 and full-year revenue of $4.2 billion and $16.7 billion, respectively, included the impact of the anticipated exit from a customer engagement and the exit from certain content services

Full year operating cash flow of $3.3 billion and free cash flow of $2.9 billion

2021 revenue growth guidance of 5.5% to 8.5% or 4.0% to 7.0% in constant currency

Quarterly dividend increased to $0.24 per share

Total Revenue
$4.18B
Previous year: $4.28B
-2.3%
EPS
$0.67
Previous year: $1.07
-37.4%
Gross Profit
$1.52B
Previous year: $1.54B
-0.8%
Cash and Equivalents
$2.68B
Previous year: $2.65B
+1.3%
Free Cash Flow
$809M
Previous year: $845M
-4.3%
Total Assets
$16.9B
Previous year: $16.2B
+4.4%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

The Company is providing the following guidance: • First quarter revenue expected to be $4.34-$4.38 billion, or growth of 2.8-3.8% (1.0-2.0% in CC). This assumes an estimated positive 180 basis points foreign exchange impact and a negative 85 basis points impact from the exit of certain content services • Full year 2021 revenue expected to be $17.6-$18.1 billion, or growth of 5.5-8.5% (4.0-7.0% in CC). This assumes an estimated positive 150 basis points foreign exchange impact and a negative 30 basis points impact from the exit of certain content services • Full year 2021 Adjusted Operating Margin 15.2-16.2% • Full year 2021 Adjusted Diluted EPS expected to be in the range of $3.90-$4.02

Revenue & Expenses

Visualization of income flow from segment revenue to net income