TEANECK, NJ – Cognizant Technology Solutions (NASDAQ:) Corporation (NASDAQ:CTSH) reported stronger-than-expected performance for the second quarter of 2024, with earnings exceeding analyst expectations.
The company announced adjusted earnings per share of $1.17, which was $0.05 higher than the analyst estimate of $1.12. Revenue for the quarter also exceeded expectations, coming in at $4.85 billion, versus consensus expectations of $4.8 billion.
The company’s revenue for the second quarter reflected a slight decline of 0.7% from the same quarter last year, but adjusted for constant exchange rates the decline was a smaller 0.5%. Adjusted operating margin grew 100 basis points year-over-year to reach 15.2%.
Cognizant CEO Ravi Kumar S attributed the strong quarter to revenue exceeding expectations, margin expansion and continued momentum for large deals. He emphasized that the company’s strategic priorities are to create new customer opportunities and increase agility, which translates into improved performance and long-term shareholder value.
For the third quarter of 2024, Cognizant expects revenue to be between $4.89 billion and $4.96 billion, in line with the analyst consensus of $4.911 billion. The midpoint of this range indicates a potential for flat growth of up to 1.5% at constant exchange rates. Looking ahead to the full year, the company has narrowed its revenue guidance to a range of $19.3 billion to $19.5 billion, indicating a slight increase from the consensus estimate of $19.404 billion at the midpoint. Full-year adjusted EPS guidance is set at $4.62 to $4.70, with the lower end consistent with analyst consensus.
Cognizant CFO Jatin Dalal noted that sequential revenue growth of 2.1% in constant currency was the strongest in two years, driven by the Financial Services and Health Sciences segments. The company’s NextGen program has been instrumental in financing growth investments and achieving margin expansion. The personnel statistics also showed an improvement: voluntary turnover in technical services fell from 19.9% a year ago to 13.6%.
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