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Dec 31, 2024
Cognizant Q4 2024 Earnings Report
Cognizant reported strong fourth quarter and full-year 2024 financial results, with revenue growth at the high end of guidance and increased operating margins.
Key Takeaways
Cognizant delivered a strong performance in Q4 2024, with revenue reaching $5.082 billion, a 6.8% year-over-year increase. The company also reported diluted EPS of $1.10 and non-GAAP diluted EPS of $1.21, alongside significant full-year achievements including increased operating margin and strong bookings growth.
Fourth quarter revenue of $5.1 billion increased 6.8% year-over-year or 6.7% in constant currency, at the high end of guidance range.
Full-year operating margin of 14.7% increased 80 basis points year-over-year; Adjusted Operating Margin of 15.3% increased 20 basis points year-over-year.
Trailing 12-month bookings of $27.1 billion, up 3% year-over-year, driven by 11% year-over-year fourth quarter bookings growth.
$1.2 billion returned to shareholders through share repurchases and dividends in 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cognizant expects continued growth in 2025, with revenue growth projected between 3.5% and 6.0% in constant currency and an expansion in Adjusted Operating Margin.
Positive Outlook
- First quarter revenue is expected to be $5.0 - $5.1 billion, growth of 5.6% to 7.1%, or 6.5% to 8.0% in constant currency.
- Full-year 2025 revenue is expected to be $20.3 - $20.8 billion, growth of 2.6% to 5.1%, or 3.5% to 6.0% in constant currency.
- Full-year 2025 Adjusted Operating Margin is expected to be from 15.5% to 15.7%, or 20 to 40 basis points of expansion.
- Full-year 2025 Adjusted Diluted EPS is expected to be in the range of $4.90 to $5.06.
- The company expects improved cost structure to sustain strategic investments for profitable growth.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The company notes that a full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to GAAP measures cannot be provided without unreasonable efforts due to the unpredictability of unusual items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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