Cognizant Technology Solutions ( (CTSH) ) has realeased its Q3 earnings. Here is a breakdown of the information Cognizant Technology Solutions presented to its investors.
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Cognizant Technology Solutions, a leading professional services company in the IT sector, specializes in helping businesses modernize technology and improve operations. In its third quarter of 2024, Cognizant reported a revenue of $5 billion, marking a 3% increase from the previous year, with strong performances in Health Sciences and Financial Services segments. The company maintained a steady operating margin of 14.6%, with adjusted operating margins showing slight variations year-over-year. Additionally, Cognizant completed the acquisition of Belcan, enhancing its capabilities in the engineering sector.
Key financial metrics highlighted include a year-over-year revenue growth of 3%, driven by strategic investments and acquisitions. The Health Sciences segment experienced robust growth of 7.8%, while Financial Services returned to growth with a 0.7% increase. Cognizant’s adjusted diluted EPS rose to $1.25, reflecting solid operational efficiency and cost management under its NextGen program. The company saw flat bookings of $26.2 billion over the trailing twelve months, indicating steady future revenue streams.
Strategically, Cognizant is investing in AI-driven platforms such as its Neuro suite and Flowsource, which have been well received in the market. The company’s acquisition of Belcan aims to strengthen its position in the growing engineering research and development market. Further, Cognizant announced several key partnerships and collaborations, including with NVIDIA and AWS, to boost its offerings in AI and cloud services.
Looking ahead, Cognizant maintains a positive outlook with expected revenue growth of 1.6% to 2.1% for the full year 2024. The company’s focus on large deals and strategic acquisitions provides a solid foundation for continued growth and expansion in the upcoming year.
