• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    Cognizant Reports Third Quarter 2024 Results

    10/30/24 4:01:00 PM ET
    $CTSH
    EDP Services
    Technology
    Get the next $CTSH alert in real time by email
    • Revenue of $5.0 billion, increased 3.0% year-over-year or 2.7% in constant currency1, the high end of our guidance ranges
    • Operating margin of 14.6%, sequentially flat and increased 60 basis points year-over-year; year-to-date operating margin of 14.6%, increased 110 basis points year-over-year
    • Adjusted Operating Margin1 of 15.3%, increased 10 basis points sequentially and decreased 20 basis points year-over-year; year-to-date Adjusted Operating Margin of 15.2%, increased 40 basis points year-over-year
    • Trailing 12-month bookings of $26.2 billion; book-to-bill of 1.3x
    • Strong growth in Health Sciences, up 7.8% year-over-year or 7.6% in constant currency, and return to growth in Financial Services, up 0.7% year-over-year, or 0.5% in constant currency
    • Full-year 2024 revenue guidance narrowed to growth of 1.4% to 1.9% in constant currency, unchanged at the midpoint
    • Full-year 2024 Adjusted Operating Margin guidance of approximately 15.1%, flat year-over-year

    TEANECK, N.J., Oct. 30, 2024 /PRNewswire/ -- Cognizant (NASDAQ:CTSH), one of the world's leading professional services companies, today announced its third quarter 2024 financial results.

    3Q-2024 Infographic

    "Revenue growth in the third quarter was at the high end of our guidance range, driven by another quarter of strong performance in our largest segments, Health Sciences and Financial Services," said Ravi Kumar S, Chief Executive Officer. "Investments in AI-driven platforms, like our Neuro suite and Flowsource, are resonating with our clients and supporting our large deals success. In the third quarter, we signed six deals with total contract value of more than $100 million each, bringing our year-to-date count to nineteen, which is more than we signed in the full-year 2023. In August, we officially welcomed Belcan to the Cognizant family, and we are excited about the opportunities to jointly expand our presence in the growing ER&D market."

    $ in billions, except per share data

    Q3 2024



    Q3 2023

    Revenue

    $5.04



    $4.90

    Y/Y Change

    3.0 %



    0.8 %

    Y/Y Change CC1

    2.7 %



    (0.2 %)

    GAAP Operating Margin

    14.6 %



    14.0 %

    Adjusted Operating Margin1

    15.3 %



    15.5 %

    GAAP Diluted EPS

    $1.17



    $1.04

    Adjusted Diluted EPS1

    $1.25



    $1.16





















    Our recently completed acquisitions contributed approximately 200 basis points to the Y/Y change in revenue.





















    1 Constant currency ("CC") revenue growth, Adjusted Operating Margin, and Adjusted Diluted Earnings Per Share ("Adjusted Diluted EPS") are not measures of financial performance prepared in accordance with GAAP. A full reconciliation of Adjusted Operating Margin guidance to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts. See "About Non-GAAP Financial Measures and Performance Metrics" for more information and, as applicable, reconciliations to the most directly comparable GAAP financial measures.

    "In the third quarter, we delivered organic revenue growth both sequentially and year-over-year while also achieving sequential gross margin expansion, driven by better utilization and AI-led productivity, and Adjusted EPS growth of more than 7% year-over-year," said Jatin Dalal, Chief Financial Officer. "Our focus on operating cost discipline and savings generated through our strong execution under the NextGen program have allowed us to expand year-to-date Adjusted Operating Margin by approximately 40 basis points. As we look ahead, our fourth quarter year-over-year organic revenue growth is expected to be stronger than it was in the prior year period, and our large deal momentum provides us a strong foundation to build upon in 2025."

    Bookings

    Bookings in the third quarter were flat year-over-year. On a trailing-twelve-month basis, bookings declined 2% year-over-year to $26.2 billion, which represented a book-to-bill of approximately 1.3x. During the quarter, we signed six deals each with total contract value of $100 million or greater.

    Employee Metrics

    Voluntary attrition - Tech Services on a trailing-twelve months basis was 14.6% as compared to 16.2% for the period ended September 30, 2023. Total headcount at the end of the third quarter was 340,100 including Belcan, an increase of 3,800 from Q2 2024 and a decrease of 6,500 from Q3 2023.

    Return of Capital to Shareholders

    The Company repurchased 3.1 million shares for $228 million during the third quarter under its share repurchase program. As of September 30, 2024, there was $1.4 billion remaining under the share repurchase authorization. In October 2024, the Company declared a quarterly cash dividend of $0.30 per share for shareholders of record on November 19, 2024. This dividend will be payable on November 27, 2024.

    Fourth Quarter and Full-Year 2024 Guidance2

    (all growth rates year-over-year)

    • Fourth quarter revenue is expected to be $5.0 - $5.1 billion, growth of 5.1% to 7.1%, or an increase of 4.8% to 6.8% in constant currency.
    • Full-year 2024 revenue is expected to be $19.7 - $19.8 billion, growth of 1.6% to 2.1% or an increase of 1.4% to 1.9% in constant currency basis. This assumes approximately 200 basis points of inorganic contribution.
    • Full-year 2024 Adjusted Operating Margin3 is expected to be approximately 15.1%, flat year-over-year.
    • Full-year 2024 Adjusted Diluted EPS3 is expected to be in the range of $4.63 to $4.67.




















    2 Guidance as of October 30, 2024

    3 A 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. See "About Non-GAAP Financial Measures and Performance Metrics" for more information and a partial reconciliation at the end of this release.

    Select Company, Client and Partnership Announcements 

    The portfolio of capabilities Cognizant is building to harness and advance an AI-led future, combined with deep domain expertise and growing operational discipline, continues to resonate in the marketplace. Cognizant's progress has been accelerated through the following strategic acquisitions, platform enhancements, partnerships, and client wins:

    Strategic Acquisitions

    • The Company completed the acquisition of Belcan for approximately $1.3 billion in cash and stock during the third quarter. Belcan is a leading global supplier of Engineering Research & Development (ER&D) services for the commercial aerospace, defense, space, marine and industrial verticals. This strategic acquisition strengthens Cognizant's engineering capabilities, builds on its leadership in the Internet of Things (IoT) and Digital Engineering practice areas, and increases its presence in the aerospace and defense (A&D) services market.

    Platform Enhancements

    • Announced the debut of Cognizant Neuro® Cybersecurity, a new addition to Cognizant's Neuro suite of platforms, designed to amplify cybersecurity resilience by integrating and orchestrating point cybersecurity solutions across the enterprise. Cognizant Neuro Cybersecurity provides an AI-enabled, user-friendly interface designed to enhance real-time decision-making to preserve security and protect enterprise networks and data.
    • Announced Multi-Agent Orchestration for Cognizant's Neuro® AI Platform, aimed at enabling enterprises to rapidly discover, prototype, and develop AI use cases that can improve decision-making, leading to better company performance and new revenue opportunities. The enhanced Cognizant Neuro® AI platform is backed by multiple patents and can be leveraged for almost any industry or business challenge involving data analysis, from inventory management and dynamic pricing to fraud reduction and efficient staff allocation.

    Partnerships

    • Announced new collaboration with NVIDIA to bring enhanced capabilities to our data modernization offering. We plan to leverage the Cognizant Data and Intelligence Toolkit to offer services on the NVIDIA RAPIDS library of frameworks and APIs. These services aim to help clients drive efficiency in cloud infrastructure operations and enable AI readiness.
    • Expanded our strategic partnership with ServiceNow to be the first partner to bring its new Workflow Data Fabric to market. Workflow Data Fabric is an enhanced integrated data layer that unifies business and technology data across the enterprise, powering all workflows and AI agents with real-time, secure access to data from any source.
    • Signed a strategic collaboration agreement with Amazon Web Services (AWS), with plans to deliver advanced technology solutions and cloud computing services, focused on enhancing smart manufacturing capabilities for global enterprises across industries. This latest expansion of Cognizant's collaboration with AWS is designed to meet the growing market demand for IoT, data, artificial intelligence (AI) and cloud adoption in Industry 4.0 applications, such as digital twins, simulations, manufacturing execution systems, edge computing, and operational technology (OT) cybersecurity solutions.
    • Partnered with Palo Alto Networks to deliver AI-driven cybersecurity capabilities and services for enterprises across industries. The agreement enables Cognizant to deepen its expertise and broaden its services across Palo Alto Networks Precision AI-powered Network Security Platform, Code-to-Cloud Platform and Security Operations Platform. Together, Cognizant and Palo Alto Networks aim to deliver solutions to help clients consolidate security products across functions with the goal of reducing complexity, and improve overall levels of security through platformization.

    Client Wins

    • Selected by mecwacare, an aged care and community services provider, as its strategic delivery partner to launch an innovative digital transformation program. This digital transformation aims to modernize mecwacare's existing enterprise applications and fragmented IT systems by optimizing service delivery and enabling a future powered by deep data, analytics and AI.
    • Selected by England and Wales Cricket Board (ECB) as its Official Digital Technology Transformation Partner to reimagine the recreational cricket experience through technology.  Cognizant will be the key strategic partner for the ECB's recreational game systems program – aiming to develop integrated and user-friendly digital products that simplify numerous administrative tasks involved in running recreational cricket, and providing a streamlined and inclusive digital experience that facilitates a more meaningful engagement for all participants with the game.
    • Announced a five-year strategic relationship with du, the leading telecom and digital services provider in the United Arab Emirates, aimed at accelerating du's digital transformation. The collaboration is focused on enhancing du's internal capabilities to help the company remain at the forefront of the rapidly evolving telecommunications landscape. The collaboration will integrate Cognizant's advanced solutions to enhance du's service quality and customer satisfaction
    • Announced a deal with KOMBIT, a municipally owned IT company responsible for strategically operating critical IT solutions for 98 Danish municipalities, to transform public service application testing in Denmark. The agreement aims to enhance quality assurance operational efficiency and improve user experience across 26 public service apps for Danish municipal IT solutions.
    • Selected by Alnylam Pharmaceuticals, a leading biopharmaceutical company and the pioneer in RNA interference (RNAi) therapeutics, as the technology services partner responsible for managing Alnylam's global infrastructure and operations, cloud, security, platforms and advanced data and analytics. This agreement aims to scale Alnylam's IT operations and accelerate its capabilities in delivering transformative medicines.
    • Selected by FCCI Insurance Group, a provider of commercial property and casualty insurance, risk control services, and surety bonds, to collaborate with FCCI to implement a state-of-the-art policy administration system that enhances FCCI's existing admitted commercial property and casualty offerings with (Excess & Surplus) E&S capability. The engagement  leveraged Cognizant's expertise in the insurance sector and Duck Creek Technologies' Policy Active Delivery platform.

    Select Analyst Ratings, Company Recognition and Announcements

    • Recognized once again by Forbes as one of the World's Best Employers. This award is presented in collaboration with Statista, the world-leading statistics portal and industry ranking provider. The World's Best Employers 2024 were selected through an independent survey encompassing a vast sample of more than 300,000 participants across 50 different countries.
    • Named to Fortune's 2024 Change the World list, ranked seventh among 52 companies across a variety of industries and categories. This recognition celebrates the innovation and societal impact of Cognizant's Synapse initiative to advance technology job training for 1 million people worldwide by 2026.
    • Named one of America's Greenest Companies by Newsweek magazine and has been recognized among the Top 300 companies in the U.S., based on environmental sustainability. Cognizant was also recognized recently with multiple awards for its sustainability efforts including a 2024 International Green Apple Environment Award in the Environmental Improvement category and two National Awards for Excellence in CSR & Sustainability for Best Environment Friendly Project and Best Environmental Responsibility Initiatives.
    • Ranked tenth on Newsweek's list of America's Most Reliable Companies 2025.  The list is presented in collaboration with Statista, and companies were identified through an independent survey of more than 1,700 decision-makers who do business with B2B companies across the nation. 
    • Cognizant Foundation India celebrates 20 years of community impact. Since its inception, Cognizant Foundation India has partnered with over 300 non-profit organizations across the subcontinent and successfully implemented more than 600 projects, which have positively impacted economically and socially disadvantaged people across India.  Most recently in 2023-24, Cognizant Foundation India supported 101 projects with 40 not-for-profit organizations reaching people across India.
    • Recognized as a Leader by Everest Group® in:
      • Low Code Application Development Services - Microsoft Power Apps Services PEAK Matrix® Assessment, 2024
      • Salesforce Services PEAK Matrix® Assessment, 2024
      • Life & Annuity (L&A) Insurance IT Services PEAK Matrix® Assessment, 2024
      • Retail and CPG Data, Analytics, and AI Services PEAK Matrix® Assessment, 2024
      • Digital Workplace Services PEAK Matrix® Assessment 2024 – North America & Mid-Market Enterprises
      • Healthcare Payer Business Process as a Service (BPaaS) - Solutions PEAK Matrix® Assessment, 2024
    • Market Leader in HFS Horizon 3:
      • IOT Services, 2024
      • AADA Quadfecta Services for the Generative Enterprise™, 2024
    • Leadership in ISG Provider Lens™: 
      • Multi Public Cloud Services, 2024
      • Future of Work (Workplace) - Services, 2024
      • AWS Ecosystem, 2024
      • Workday Ecosystem, 2024
      • Retail and CPG Services, 2024
      • Next Gen ADM Services 2024, APAC, U.S, Europe
    • Cognizant positioned as a leader in Avasant's:
      • Digital Workplace Services, 2024
      • Salesforce Services, 2024
      • Generative AI Services, 2024
      • Data Management and Advanced Analytics Services, 2024
      • Mortgage Business Process Transformation, 2024
      • Financial Services Digital Services, 2024
      • Revenue Cycle Management Business Process Transformation, 2024
    • Recognized as a Global Leader in Constellation's 2024 ShortList Reports:
      • Customer Experience Operations Services
      • AI-Driven Cognitive Applications
      • Custom Software Development Services
      • AI Services
      • Public Cloud Transformation Services
      • Digital Transformation Services

    Conference Call

    Cognizant will host a conference call on October 30, 2024, at 5:00 p.m. (Eastern) to discuss the Company's third quarter 2024 results. To listen to the conference call, please dial (877) 810-9510 (domestic) or +1 (201) 493-6778 (international) and provide the following conference passcode: "Cognizant Call."

    The conference call will also be available live on the Investor Relations section of the Cognizant website at http://investors.cognizant.com. An earnings supplement will also be available on the Cognizant website at the time of the conference call. For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or +1 (201) 612-7415 (internationally) and enter 13747233 beginning two hours after the end of the call until 11:59 p.m. (Eastern) on Tuesday, November 13, 2024. The replay will also be available at Cognizant's website www.cognizant.com for 60 days following the call.

    About Cognizant

    Cognizant (NASDAQ:CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

    Forward-Looking Statements

    This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, strategic partnerships and collaborations, competitive position and opportunities in the marketplace, investment in and growth of our business, the pace and magnitude of change and client needs related to generative AI, the effectiveness of our recruiting and talent efforts and related costs, labor market trends, the anticipated amount of capital to be returned to shareholders and our anticipated financial performance. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, our ability to successfully implement our NextGen program and the amount of costs, timing of incurring costs and ultimate benefits of such plans, our ability to successfully use AI-based technologies, legal, reputational and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration and taxes, matters related to the acquisition of Belcan, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

    About Non-GAAP Financial Measures and Performance Metrics

    Non-GAAP Financial Measures

    To supplement our financial results presented in accordance with GAAP, this press release includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Operating Margin, Adjusted Diluted EPS, free cash flow, net cash and constant currency revenue growth. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of our non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.

    Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations excludes unusual items, such as NextGen charges. Our non-GAAP financial measure Adjusted Diluted EPS excludes unusual items, such as NextGen charges, net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments. The income tax impact of each item excluded from Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Free cash flow is defined as cash flows from operating activities net of purchases of property and equipment. Net cash is defined as cash and cash equivalents and short-term investments less short-term and long-term debt. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period's foreign currency exchange rates measured against the comparative period's reported revenues.

    Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced transparency into our operating results. For our internal management reporting and budgeting purposes, we use various GAAP and non-GAAP financial measures for financial and operational decision-making, to evaluate period-to-period comparisons, to determine portions of the compensation for our executive officers and for making comparisons of our operating results to those of our competitors. Accordingly, we believe that the presentation of our non-GAAP measures, which exclude certain costs, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations.

    A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and may exclude costs that are recurring such as our net non-operating foreign currency exchange gains or losses. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from our non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

    Performance Metrics

    Bookings are defined as total contract value (or TCV) of new contracts, including new contract sales as well as renewals and expansions of existing contracts. Bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large contracts. Our book-to-bill ratio is defined as bookings for the trailing twelve months divided by revenue for the same period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. The extent and timing of conversion of bookings to revenues may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and contract modifications, including terminations, over the lifetime of a contract. The majority of our contracts are terminable by the client on short notice often without penalty, and some without notice. We do not update our bookings for subsequent terminations, reductions or foreign currency exchange rate fluctuations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenues. However, management believes that it is a key indicator of potential future revenues and provides a useful indicator of the volume of our business over time.

    Investor Relations Contact:







    Media Contact:

    Tyler Scott







    Jeff DeMarrais

    VP, Investor Relations







    VP, Corporate Communications

     +1 551-220-8246







     +1 475-223-2298

    [email protected]







    [email protected]

    - tables to follow -

     

    COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (Unaudited)









     (in millions, except per share data)

    Three Months Ended

    September 30,



    Nine Months Ended

    September 30,



    2024



    2023



    2024



    2023

     Revenues

    $     5,044



    $     4,897



    $  14,654



    $   14,595

     Operating expenses:















    Cost of revenues (exclusive of depreciation and amortization expense

        shown separately below)

    3,311



    3,209



    9,661



    9,583

     Selling, general and administrative expenses

    833



    801



    2,379



    2,466

     Restructuring charges

    33



    72



    85



    189

     Depreciation and amortization expense

    129



    129



    388



    392

     Income from operations

    738



    686



    2,141



    1,965

     Other income (expense), net:















     Interest income

    31



    32



    91



    92

     Interest expense

    (14)



    (11)



    (35)



    (30)

     Foreign currency exchange gains (losses), net

    (8)



    —



    (1)



    3

     Other, net

    1



    6



    2



    8

     Total other income (expense), net

    10



    27



    57



    73

     Income before provision for income taxes

    748



    713



    2,198



    2,038

     Provision for income taxes

    (170)



    (191)



    (514)



    (473)

     Income (loss) from equity method investment

    4



    3



    10



    3

    Net income

    $        582



    $        525



    $     1,694



    $     1,568

     Basic earnings per share

    $       1.17



    $       1.04



    $       3.41



    $       3.10

     Diluted earnings per share

    $       1.17



    $       1.04



    $       3.41



    $       3.09

    Weighted average number of common shares outstanding - Basic

    496



    504



    497



    506

    Dilutive effect of shares issuable under stock-based compensation plans

    —



    1



    —



    1

    Weighted average number of common shares outstanding - Diluted

    496



    505



    497



    507

     

    COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

    CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

    (Unaudited)









    (in millions, except par values)

    September 30,

    2024



    December 31,

    2023

    Assets







    Current assets:







    Cash and cash equivalents

    $          2,013



    $          2,621

    Short-term investments

    12



    14

    Trade accounts receivable, net

    4,206



    3,849

    Other current assets

    1,317



    1,022

    Total current assets

    7,548



    7,506

    Property and equipment, net

    1,001



    1,048

    Operating lease assets, net

    587



    611

    Goodwill

    7,132



    6,085

    Intangible assets, net

    1,681



    1,149

    Deferred income tax assets, net

    1,091



    993

    Long-term investments

    90



    435

    Other noncurrent assets

    1,034



    656

    Total assets

    $       20,164



    $       18,483

    Liabilities and Stockholders' Equity







    Current liabilities:







    Accounts payable

    $             304



    $             337

    Deferred revenue

    355



    385

    Short-term debt

    33



    33

    Operating lease liabilities

    192



    153

    Accrued expenses and other current liabilities

    2,504



    2,425

    Total current liabilities

    3,388



    3,333

    Deferred revenue, noncurrent

    28



    42

    Operating lease liabilities, noncurrent

    455



    523

    Deferred income tax liabilities, net

    218



    226

    Long-term debt

    1,183



    606

    Long-term income taxes payable

    —



    157

    Other noncurrent liabilities

    440



    369

    Total liabilities

    5,712



    5,256

    Stockholders' equity:







    Preferred stock, $0.10 par value, 15 shares authorized, none issued

    —



    —

    Class A common stock, $0.01 par value, 1,000 shares authorized, 496 and 498 shares issued

    and outstanding as of September 30, 2024 and December 31, 2023, respectively

    5



    5

    Additional paid-in capital

    58



    15

    Retained earnings

    14,347



    13,301

    Accumulated other comprehensive income (loss)

    42



    (94)

    Total stockholders' equity

    14,452



    13,227

    Total liabilities and stockholders' equity

    $       20,164



    $       18,483

     

    COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

    Reconciliations of Non-GAAP Financial Measures

    (Unaudited)













     (dollars in millions, except per share amounts)

    Three Months Ended

    September 30,



    Nine Months Ended

    September 30,



    Guidance



    2024



    2023



    2024



    2023



    Full Year 2024 (1)

    GAAP income from operations

    $    738



    $    686



    $ 2,141



    $ 1,965





    NextGen charges(a)

    33



    72



    85



    189





    Adjusted Income From Operations

    $    771



    $    758



    $ 2,226



    $ 2,154

























    GAAP operating margin

    14.6 %



    14.0 %



    14.6 %



    13.5 %





    NextGen charges

    0.7



    1.5



    0.6



    1.3



    ~ 0.5%

    Adjusted Operating Margin

    15.3 %



    15.5 %



    15.2 %



    14.8 %



    15.1 %





















    GAAP diluted earnings per share

    $   1.17



    $   1.04



    $   3.41



    $   3.09





    Effect of NextGen charges, pre-tax

    0.07



    0.14



    0.17



    0.37



    ~ $0.21

    Non-operating foreign currency exchange (gains) losses, pre-tax(b)

    0.02



    —



    —



    (0.01)



    (b)

    Tax effect of above adjustments(c)

    (0.01)



    (0.02)



    (0.03)



    (0.08)



    (a) (b)

    Adjusted Diluted Earnings Per Share

    $   1.25



    $   1.16



    $   3.55



    $   3.37



    $4.63 - $4.67

     

    (1) A full reconciliation of Adjusted Operating Margin and Adjusted Diluted Earnings Per Share guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to unusual items, net non-operating foreign currency exchange gains or losses and the tax effects of these adjustments, and such adjustments may be significant.

     

    Notes:

    (a)  NextGen charges include:











    Three Months Ended

    September 30,



    Nine months ended

    September 30,

    (in millions)

    2024



    2023



    2024



    2023

    Employee separation costs

    $              29



    $              15



    $              55



    $              93

    Facility exit costs

    4



    55



    29



    92

    Third party and other costs

    —



    2



    1



    4

    Total NextGen charges

    $              33



    $              72



    $              85



    $            189







    The costs related to the NextGen program are reported in "Restructuring charges" in our unaudited consolidated statements of operations. We expect to incur approximately $105 million of costs in 2024 in connection with the NextGen program. Our guidance anticipates pre-tax charges of approximately $0.21 per diluted share for the full year 2024. The tax effect of these charges is expected to be approximately $0.05 per diluted share for the full year 2024.

    (b)

    Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in "Foreign currency exchange gains (losses), net" in our unaudited consolidated statements of operations. Non-operating foreign currency exchange gains and losses are subject to high variability and low visibility and therefore cannot be provided on a forward-looking basis without unreasonable efforts.

    (c)

    Presented below are the tax impacts of our non-GAAP adjustment to pre-tax income for the: 









    (in millions)

    Three Months Ended

    September 30,



    Nine Months Ended

    September 30,



    2024



    2023



    2024



    2023

    Non-GAAP income tax benefit (expense) related to:















    NextGen charges

    $                8



    $              18



    $              21



    $              49

    Foreign currency exchange gains and losses

    (3)



    (7)



    (3)



    (2)



    The effective tax rate related to non-operating foreign currency exchange gains and losses varies depending on the jurisdictions in which such income and expenses are generated and the statutory rates applicable in those jurisdictions. As such, the income tax effect of non-operating foreign currency exchange gains and losses shown in the above table may not appear proportionate to the net pre-tax foreign currency exchange gains and losses reported in our unaudited consolidated statements of operations.

     

    Reconciliations of Net Cash

    (Unaudited)











    (in millions)



    September 30, 2024



    December 31, 2023

    Cash and unrestricted cash equivalents



    $                 2,013



    $                 2,621

    Short-term investments



    12



    14

    Less:









    Short-term debt



    33



    33

    Long-term debt



    1,183



    606

    Net cash



    $                    809



    $                 1,996

     

    The above tables serve to reconcile the Non-GAAP financial measures to the most directly comparable GAAP measures. Refer to the "About Non-GAAP Financial Measures and Performance Metrics" section of our press release for further information on the use of these Non-GAAP measures.

     

    COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

    Revenue by Business Segment and Geography

    (Unaudited)





     (dollars in millions)

    Three Months Ended September 30, 2024











    Year over Year



    $



     % of total



     % Change



    Constant

    Currency

    % Change (a)

    Revenues by Segment:















    Financial Services

    $         1,486



    29.5 %



    0.7 %



    0.5 %

    Health Sciences

    1,514



    30.0 %



    7.8 %



    7.6 %

    Products and Resources (b)

    1,228



    24.3 %



    5.0 %



    4.6 %

    Communications, Media and Technology

    816



    16.2 %



    (3.7) %



    (4.1) %

    Total Revenues (b)

    $         5,044







    3.0 %



    2.7 %

    Revenues by Geography:















    North America (b)

    $         3,735



    74.0 %



    3.8 %



    3.8 %

    United Kingdom

    482



    9.6 %



    (0.8) %



    (2.9) %

    Continental Europe

    485



    9.6 %



    0.2 %



    (0.8) %

    Europe - Total

    967



    19.2 %



    (0.3) %



    (1.9) %

    Rest of World

    342



    6.8 %



    4.3 %



    4.2 %

    Total Revenues (b)

    $         5,044







    3.0 %



    2.7 %



















    Nine Months Ended September 30, 2024











    Year over Year



    $



     % of total



     % Change



    Constant

    Currency

    % Change (a)

    Revenues by Segment:















    Financial Services

    $         4,318



    29.5 %



    (2.2) %



    (2.3) %

    Health Sciences

    4,391



    30.0 %



    2.6 %



    2.6 %

    Products and Resources (c)

    3,487



    23.8 %



    0.6 %



    0.5 %

    Communications, Media and Technology

    2,458



    16.7 %



    0.8 %



    0.6 %

    Total Revenues (c)

    $       14,654







    0.4 %



    0.3 %

    Revenues by Geography:















    North America (c)

    $       10,876



    74.3 %



    1.3 %



    1.4 %

    United Kingdom

    1,382



    9.4 %



    (3.8) %



    (5.7) %

    Continental Europe

    1,438



    9.8 %



    (0.1) %



    (0.7) %

    Europe - Total

    2,820



    19.2 %



    (1.9) %



    (3.2) %

    Rest of World

    958



    6.5 %



    (2.8) %



    (1.2) %

    Total Revenues (c)

    $       14,654







    0.4 %



    0.3 %

     

    Notes:

    (a) 

    Constant currency revenue growth is not a measure of financial performance prepared in accordance with GAAP. See "About Non-GAAP Financial Measures and Performance Metrics" section of our press release for further information.

    (b) 

    For the three months ended September 30, 2024, recently completed acquisitions contributed approximately 200 basis points to overall revenue growth, including approximately 750 basis points of growth to our Products and Resources segment, primarily in North America.

    (c) 

    For the nine months ended September 30, 2024, recently completed acquisitions contributed approximately 100 basis points to overall revenue, including approximately 300 basis points of growth to our Products and Resources segment, primarily in North America.

     

    COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Unaudited)









    (in millions)

    Three Months Ended

    September 30,



    Nine Months Ended

    September 30,



    2024



    2023



    2024



    2023

    Cash flows from operating activities:















    Net income

    $        582



    $        525



    $    1,694



    $    1,568

    Adjustments for non-cash income and expenses

    92



    47



    354



    322

    Changes in assets and liabilities

    173



    256



    (844)



    (297)

    Net cash provided by operating activities

    847



    828



    1,204



    1,593

    Cash flows from investing activities:















    Purchases of property and equipment

    (56)



    (73)



    (214)



    (239)

    Net (purchases) maturities of investments

    —



    (126)



    262



    149

    Payments for business combinations, net of cash acquired

    (1,194)



    —



    (1,615)



    (409)

    Net cash (used in) investing activities

    (1,250)



    (199)



    (1,567)



    (499)

    Cash flows from financing activities:















    Issuance of common stock under stock-based compensation plans

    14



    16



    49



    57

    Repurchases of common stock

    (242)



    (315)



    (451)



    (751)

    Net change in term loan borrowings and earnout and finance lease obligations

    (11)



    (4)



    (61)



    (15)

    Proceeds from borrowing under the revolving credit facility

    600



    —



    600



    —

    Dividends paid

    (149)



    (147)



    (450)



    (445)

    Net cash provided by (used in) financing activities

    212



    (450)



    (313)



    (1,154)

    Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash

       equivalents

    11



    (30)



    (28)



    (30)

    (Decrease) increase in cash, cash equivalents and restricted cash and cash equivalents

    (180)



    149



    (704)



    (90)

    Cash, cash equivalents and restricted cash and cash equivalents, beginning of period

    2,193



    2,055



    2,717



    2,294

    Cash and cash equivalents, end of period

    $    2,013



    $    2,204



    $    2,013



    $    2,204

     

    SUPPLEMENTAL CASH FLOW INFORMATION





    (in millions)

    Three Months Ended

    September 30,

    Stock Repurchases under Board of Directors' authorized stock repurchase program:

    2024



    2023

    Number of shares repurchased

    3.1



    4.3









    Remaining authorized balance as of September 30, 2024

    $       1,377





     

    Reconciliation of Free Cash Flow Non-GAAP Financial Measure









    (in millions)

    Three Months Ended

    September 30,



    Nine Months Ended

    September 30,



    2024



    2023



    2024



    2023

    Net cash provided by operating activities

    $           847



    $           828



    $      1,204



    $      1,593

    Purchases of property and equipment

    (56)



    (73)



    (214)



    (239)

    Free cash flow

    $           791



    $           755



    $         990



    $      1,354

     

    New Cognizant Logo (PRNewsfoto/Cognizant)

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cognizant-reports-third-quarter-2024-results-302291994.html

    SOURCE Cognizant Technology Solutions

    Get the next $CTSH alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $CTSH

    DatePrice TargetRatingAnalyst
    5/1/2025$90.00Neutral → Positive
    Susquehanna
    12/17/2024$80.00 → $95.00Equal Weight → Overweight
    Barclays
    8/28/2024$90.00Buy
    Jefferies
    8/7/2024$73.00 → $75.00Underperform → Neutral
    BofA Securities
    6/24/2024$72.00Neutral
    Goldman
    4/1/2024$87.00 → $80.00Positive → Neutral
    Susquehanna
    3/19/2024$80.00Neutral
    Guggenheim
    1/30/2024$82.00Neutral
    Mizuho
    More analyst ratings

    $CTSH
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • Amendment: SEC Form SC 13G/A filed by Cognizant Technology Solutions Corporation

      SC 13G/A - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Subject)

      11/12/24 2:23:34 PM ET
      $CTSH
      EDP Services
      Technology
    • Amendment: SEC Form SC 13G/A filed by Cognizant Technology Solutions Corporation

      SC 13G/A - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Subject)

      11/4/24 11:18:26 AM ET
      $CTSH
      EDP Services
      Technology
    • SEC Form SC 13G filed by Cognizant Technology Solutions Corporation

      SC 13G - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Subject)

      10/17/24 9:27:59 AM ET
      $CTSH
      EDP Services
      Technology

    $CTSH
    Leadership Updates

    Live Leadership Updates

    See more
    • Gorilla Technology Appoints AI Visionary Satish Venkatesan to Lead Americas Innovation Drive

      Company also reiterates capital allocation priorities through its previously announced share buyback programmeLondon, United Kingdom--(Newsfile Corp. - April 14, 2025) - Gorilla Technology Group Inc. (NASDAQ:GRRR) ("Gorilla" or the "Company"), global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology, today announced the appointment of Satish Venkatesan as Chief Solutions Strategist - Americas, effective 14 April 2025.To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/10783/248385_b66e575ea4d31985_001full.jpgIn this newly created role, Venkatesan will lead Gorilla's solution strategy, ecosyst

      4/14/25 8:00:00 AM ET
      $CTSH
      $GRRR
      EDP Services
      Technology
      Computer Software: Prepackaged Software
    • Cognizant Appoints Rajesh Varrier as Global Head of Operations and Chairman & Managing Director, India

      Industry veteran brings 30 years of service, operations and digital experience to the role TEANECK, N.J., Aug. 21, 2024 /PRNewswire/ -- Cognizant (NASDAQ:CTSH) today announced the appointment of Rajesh Varrier  as Global Head of Operations, effective September 2, 2024.  Additionally, he will be appointed as Chairman & Managing Director, India, assuming the role October 1, 2024, as Rajesh Nambiar leaves Cognizant to become president of NASSCOM. Varrier will be an Executive Vice President of Cognizant, reporting to Ravi Kumar S, Cognizant's Chief Executive Officer. Varrier will be based in Bangalore, India.

      8/21/24 10:30:00 AM ET
      $CTSH
      EDP Services
      Technology
    • Cognizant Names Karima Silvent to Board of Directors

      Silvent brings significant experience in human resources, talent management, public policy and government affairs TEANECK, N.J., July 11, 2024  /PRNewswire/ -- Cognizant (NASDAQ:CTSH) today announced the appointment of Karima Silvent to its Board of Directors (the "Board") as an independent director, effective immediately. In connection with Ms. Silvent's appointment, Cognizant's Board has expanded to 13 members, 12 of whom are independent. Ms. Silvent currently serves as Group Chief Human Resources Officer and a member of the Management Committee of AXA, a French multinationa

      7/11/24 4:01:00 PM ET
      $CTSH
      EDP Services
      Technology

    $CTSH
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • Cognizant to Present at the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference

      TEANECK, N.J., May 8, 2025 /PRNewswire/ -- Cognizant (NASDAQ:CTSH), a leading provider of information technology, consulting, and business process services, today announced a presentation at the following investor conference:  J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference Presenter: Jatin Dalal, Chief Financial Officer Date: Thursday, May 15, 2025  Time: 8:40AM EST   A live audio webcast of the presentation will be available at Cognizant's website:   http://investors.cognizant.com  A replay of the webcasts will remain available on the company's

      5/8/25 8:00:00 AM ET
      $CTSH
      EDP Services
      Technology
    • Cognizant Reports First Quarter 2025 Results

      Revenue of $5.1 billion increased 7.5% year-over-year or 8.2% in constant currency1, above the high end of our guidance rangeOperating margin of 16.7% increased 210 basis points year-over-year; Adjusted Operating Margin1 of 15.5% increased 40 basis points year-over-yearGAAP EPS of $1.34 increased 22% year-over-year; Adjusted EPS of $1.23 increased 10% year-over-yearTrailing 12-month bookings of $26.7 billion increased 3% year-over-yearReturned $364 million to shareholders through share repurchases and dividends; Planned return of $1.7 billion for 20252025 constant currency revenue growth guidance is unchanged at 3.5% to 6.0%2025 Adjusted Operating Margin guidance is unchanged at 15.5% to 15.

      4/30/25 4:01:00 PM ET
      $CTSH
      EDP Services
      Technology
    • Cognizant Expands Partnership with Docusign to Enhance Customer Support and Drive Digital Transformation

      Collaboration aims to optimize customer service management and streamline agreement processes globally TEANECK, N.J., April 18, 2025 /PRNewswire/ -- Cognizant (NASDAQ:CTSH) announced today an expanded partnership with Docusign (NASDAQ:DOCU), the Intelligent Agreement Management company, to enhance customer support and drive digital transformation. This collaboration expands the existing 360-degree relationship with Cognizant as a services provider, go-to-market partner and customer, deepening the strategic partnership. Cognizant and Docusign are working together to provide inn

      4/18/25 8:00:00 AM ET
      $CTSH
      $DOCU
      EDP Services
      Technology
      Computer Software: Prepackaged Software

    $CTSH
    Financials

    Live finance-specific insights

    See more
    • Cognizant Reports First Quarter 2025 Results

      Revenue of $5.1 billion increased 7.5% year-over-year or 8.2% in constant currency1, above the high end of our guidance rangeOperating margin of 16.7% increased 210 basis points year-over-year; Adjusted Operating Margin1 of 15.5% increased 40 basis points year-over-yearGAAP EPS of $1.34 increased 22% year-over-year; Adjusted EPS of $1.23 increased 10% year-over-yearTrailing 12-month bookings of $26.7 billion increased 3% year-over-yearReturned $364 million to shareholders through share repurchases and dividends; Planned return of $1.7 billion for 20252025 constant currency revenue growth guidance is unchanged at 3.5% to 6.0%2025 Adjusted Operating Margin guidance is unchanged at 15.5% to 15.

      4/30/25 4:01:00 PM ET
      $CTSH
      EDP Services
      Technology
    • Cognizant Schedules First Quarter 2025 Earnings Release and Conference Call

      TEANECK, N.J., April 9, 2025 /PRNewswire/ -- Cognizant (NASDAQ:CTSH), a leading provider of information technology, consulting, and business process services, will announce results for the first quarter of 2025 on Wednesday, April 30, 2025 after market close. Following the release, Cognizant management will conduct a conference call at 5:00 p.m. (Eastern) to discuss operating performance for the quarter. To participate in the conference call, domestic callers can dial 877-810-9510 and international callers can dial 201-493-6778 and provide the following conference passcode: Co

      4/9/25 8:00:00 AM ET
      $CTSH
      EDP Services
      Technology
    • Cognizant Reports Fourth Quarter and Full-Year 2024 Results

      Fourth quarter revenue of $5.1 billion increased 6.8% year-over-year or 6.7% in constant currency1, at the high end of our guidance rangeFull-year revenue of $19.7 billion increased 2.0% year-over-year or 1.9% in constant currencyFull-year operating margin of 14.7% increased 80 basis points year-over-year; Adjusted Operating Margin1 of 15.3% increased 20 basis points year-over-yearTrailing 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 2024Cash dividend increased 3% to $0.31 per share for Q1 20252025 revenue growth guidance of 3.5% to 6.0% in

      2/5/25 4:01:00 PM ET
      $CTSH
      EDP Services
      Technology

    $CTSH
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more
    • Cognizant Tech upgraded by Susquehanna with a new price target

      Susquehanna upgraded Cognizant Tech from Neutral to Positive and set a new price target of $90.00

      5/1/25 7:42:13 AM ET
      $CTSH
      EDP Services
      Technology
    • Cognizant Tech upgraded by Barclays with a new price target

      Barclays upgraded Cognizant Tech from Equal Weight to Overweight and set a new price target of $95.00 from $80.00 previously

      12/17/24 7:41:42 AM ET
      $CTSH
      EDP Services
      Technology
    • Jefferies resumed coverage on Cognizant Tech with a new price target

      Jefferies resumed coverage of Cognizant Tech with a rating of Buy and set a new price target of $90.00

      8/28/24 7:39:25 AM ET
      $CTSH
      EDP Services
      Technology

    $CTSH
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more

    $CTSH
    SEC Filings

    See more
    • President - Americas Gummadi Surya covered exercise/tax liability with 180 shares and converted options into 367 shares, increasing direct ownership by 0.44% to 42,326 units (SEC Form 4)

      4 - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Issuer)

      4/3/25 6:28:38 PM ET
      $CTSH
      EDP Services
      Technology
    • Chief People Officer Diaz Kathryn converted options into 367 shares and covered exercise/tax liability with 181 shares, increasing direct ownership by 1% to 14,353 units (SEC Form 4)

      4 - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Issuer)

      4/3/25 6:26:52 PM ET
      $CTSH
      EDP Services
      Technology
    • Chief People Officer Diaz Kathryn converted options into 983 shares and covered exercise/tax liability with 353 shares, increasing direct ownership by 5% to 14,167 units (SEC Form 4)

      4 - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Issuer)

      3/18/25 4:43:21 PM ET
      $CTSH
      EDP Services
      Technology
    • Cognizant Technology Solutions Corporation filed SEC Form 8-K: Results of Operations and Financial Condition, Regulation FD Disclosure, Financial Statements and Exhibits

      8-K - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Filer)

      4/30/25 4:02:39 PM ET
      $CTSH
      EDP Services
      Technology
    • SEC Form DEF 14A filed by Cognizant Technology Solutions Corporation

      DEF 14A - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Filer)

      4/18/25 8:12:26 AM ET
      $CTSH
      EDP Services
      Technology
    • SEC Form DEFA14A filed by Cognizant Technology Solutions Corporation

      DEFA14A - COGNIZANT TECHNOLOGY SOLUTIONS CORP (0001058290) (Filer)

      4/18/25 8:12:58 AM ET
      $CTSH
      EDP Services
      Technology