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Dec 31, 2023
Cognizant Q4 2023 Earnings Report
Cognizant's Q4 2023 results reflected revenue within the guided range, maintained commercial momentum, and ongoing operational rigor.
Key Takeaways
Cognizant's Q4 2023 revenue was $4.758 billion, a decrease of 1.7% year-over-year. The company's adjusted operating margin improved sequentially to 16.1%. Full-year bookings grew 9% year-over-year to $26.3 billion.
Q4 revenue was within the guided range.
Full-year bookings increased by 9% year-over-year.
Adjusted operating margin improved sequentially to 16.1%.
The company continues to invest in generative AI, cloud, data modernization, digital engineering, and IoT.
Cognizant
Cognizant
Cognizant Revenue by Segment
Cognizant Revenue by Geographic Location
Revenue by Segment
Health Sciences Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comProducts and Resources Revenue
CapyFin.comCommunications, Media and Technology Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.comContinental Europe Revenue
CapyFin.comEurope - Total Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Cognizant anticipates Q1 2024 revenue to be $4.68 - $4.76 billion, a decline of 2.7% to 1.2%, or a decline of 3.0% to 1.5% in constant currency. Full-year 2024 revenue is expected to be $19.0 - $19.8 billion, a decline of 1.8% to growth of 2.2% as reported, or a decline of 2.0% to growth of 2.0% in constant currency. Full-year 2024 Adjusted Operating Margin is expected to be in the range of 15.3% to 15.5%, and Adjusted EPS is expected to be in the range of $4.50 to $4.68.
Positive Outlook
- Full-year 2024 Adjusted Operating Margin is expected to be in the range of 15.3% to 15.5%, or 20 to 40 basis points of expansion.
- Full-year 2024 Adjusted EPS is expected to be in the range of $4.50 to $4.68.
- The company increased the cash dividend 3% to $0.30 per share for Q1 2024.
- Cognizant continues to invest in generative AI, cloud, data modernization, digital engineering and IoT.
- The company's NextGen cost optimization program has enabled it to exceed its margin commitment and continue to invest in its strategy to improve future revenue growth.
Challenges Ahead
- First quarter revenue is expected to be $4.68 - $4.76 billion, a decline of 2.7% to 1.2%, or a decline of 3.0% to 1.5% in constant currency.
- Full-year 2024 revenue is expected to be $19.0 - $19.8 billion, a decline of 1.8% to growth of 2.2% as reported, or a decline of 2.0% to growth of 2.0% in constant currency.
- Bookings in the fourth quarter declined 6% year-over-year.
- Ongoing macro-economic pressures may impact client transformation initiatives.
- The company expects to incur $70 million of expenses in connection with the NextGen program in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income