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Dec 31, 2021

Cognizant Q4 2021 Earnings Report

Cognizant reported Q4 2021 earnings with revenue of $4.8 billion and EPS of $1.10.

Key Takeaways

Cognizant's Q4 2021 results showed strong revenue growth, driven by digital services and recent acquisitions. The company's financial performance reflects its strategic focus on enhancing its digital portfolio and strengthening its international presence.

Q4 revenue reached $4.8 billion, and full-year revenue was $18.5 billion.

Digital revenue experienced substantial growth, with a 20% increase in Q4 and 19% for the full year.

Q4 bookings grew by 22% year-over-year, resulting in a full-year book-to-bill ratio of 1.2x.

The company anticipates full-year 2022 revenue growth between 7.8% and 10.8%.

Total Revenue
$4.78B
Previous year: $4.18B
+14.2%
EPS
$1.1
Previous year: $0.67
+64.2%
Gross Profit
$1.75B
Previous year: $1.52B
+14.8%
Cash and Equivalents
$1.79B
Previous year: $2.68B
-33.1%
Free Cash Flow
$760M
Previous year: $809M
-6.1%
Total Assets
$17.9B
Previous year: $16.9B
+5.5%

Cognizant

Cognizant

Cognizant Revenue by Segment

Cognizant Revenue by Geographic Location

Forward Guidance

Cognizant provided revenue and adjusted operating margin and adjusted diluted EPS guidance for Q1 and full year 2022.

Positive Outlook

  • First quarter revenue is expected to be $4.80-$4.84 billion, or growth of 9.0-10.0% (10.2-11.2% in constant currency).
  • Full-year 2022 revenue is expected to be $20.0-$20.5 billion, or growth of 7.8%-10.8% (8.5%-11.5% in constant currency).
  • Full-year 2022 Adjusted Operating Margin is expected to expand 20 to 30 basis points to 15.6% to 15.7%.
  • Full-year 2022 Adjusted Diluted EPS is expected to be in the range of $4.46-$4.60.

Revenue & Expenses

Visualization of income flow from segment revenue to net income