- Revenue of $5.0 billion, increased 3.0% year-over-year or 2.7% in constant currency, 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
|
| Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its third quarter 2024 financial results. |
| "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 Flow source, are resonating with our clients and supporting our large deals success. In the third quarter, we signed six deals with a 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 |
|
| "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 has 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 with 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 a total contract value of $100 million or greater. |
| Employee Metrics |
| Voluntary attrition - Tech Services on a trailing twelve-month 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.
|
| For the full document click the link below: |
| Cognizant |
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