Cognizant Technology Solutions Reports Strong 2024 Results

Cognizant Technology Solutions ( (CTSH) ) has released its Q4 earnings. Here is a breakdown of the information Cognizant Technology Solutions presented to its investors.

Cognizant Technology Solutions, a leading global professional services company specializing in technology and consulting services, focuses on helping businesses modernize their technology and processes to stay competitive in a rapidly changing world. The company operates in sectors such as healthcare, financial services, and communications, with a strong emphasis on AI adoption and innovation.

In its latest earnings report, Cognizant reported a fourth-quarter revenue of $5.1 billion, marking a 6.8% increase year-over-year, and a full-year revenue of $19.7 billion, reflecting a 2.0% growth. The company also highlighted a significant increase in operating margins and bookings, showcasing the effectiveness of its strategic initiatives and acquisitions in enhancing its service offerings.

Cognizant’s key financial metrics for 2024 included an operating margin of 14.7%, with an adjusted operating margin of 15.3%, and a trailing 12-month bookings increase to $27.1 billion. The company returned $1.2 billion to shareholders through share repurchases and dividends, demonstrating strong financial health. Strategic investments in AI-led platforms and key acquisitions like Thirdera and Belcan have further diversified and strengthened Cognizant’s service portfolio.

Looking ahead, Cognizant projects a revenue growth guidance of 3.5% to 6.0% for 2025, with an anticipated adjusted operating margin expansion of 20 to 40 basis points. The company remains committed to sustaining its growth momentum through strategic investments and cost structure improvements achieved by its NextGen program, aiming to deliver profitable growth and enhanced shareholder value.