Cognizant Q4 2024 Earnings Report
Key Takeaways
Cognizant's Q4 2024 revenue reached $5.1 billion, a 6.8% year-over-year increase, driven by strong execution and strategic priorities. The company closed a record 29 large deals during the year, reflecting the effectiveness of its strategy and client-centric approach. Adjusted Operating Margin was 15.7% in the fourth quarter.
Fourth quarter revenue increased 6.8% year-over-year to $5.1 billion.
Full-year revenue increased 2.0% year-over-year to $19.7 billion.
Trailing 12-month bookings reached $27.1 billion, up 3% year-over-year.
Cash dividend increased 3% to $0.31 per share for Q1 2025.
Cognizant
Cognizant
Cognizant Revenue by Segment
Cognizant Revenue by Geographic Location
Forward Guidance
Cognizant anticipates revenue growth between 3.5% and 6.0% in constant currency for 2025. The company also projects an Adjusted Operating Margin between 15.5% and 15.7%.
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.
- Improved cost structure from the NextGen program will support strategic investments.
Challenges Ahead
- Full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts.
- Guidance is subject to risks and uncertainties.
- General economic conditions could impact results.
- Competitive and rapidly changing markets pose challenges.
- Cyberattacks could create legal, reputational and financial risks.