NASDAQ$CTSH

Cognizant Technology Solutions Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a revenue increase of 2.8% (3.5% in constant currency) with strong quarterly signings, amidst a challenging demand environment.

Cognizant's Q1 2020 results showed revenue growth of 2.8% to $4.2 billion, with adjusted EPS of $0.96. The company experienced some COVID-19 related disruptions but remains focused on supporting clients and communities.

  • Revenue increased to $4.2 billion, up 2.8% (3.5% in constant currency) from the year-ago quarter.
  • GAAP operating margin was 13.7% compared to 13.1% in the year-ago quarter.
  • Net income was $367 million compared to $441 million in the year-ago quarter.
  • Quarterly GAAP diluted EPS was $0.67 compared to $0.77 in the year-ago quarter.

Headline financials

Total Revenue

$4.23B

Previous: $4.11B+2.8%
EPS (adj)

$0.96

Previous: $0.91+5.5%
Capital Expenditures

-$112M

Previous: -$106M-5.7%
Free Cash Flow

$255M

Previous: $335M-23.9%
Net Income

$367M

Previous: $441M-16.8%
Operating Income

$579M

Previous: $539M+7.4%
Gross Profit

$1.48B

Previous: $4.11B-64.0%
Cash & Equivalents

$3.89B

Previous: $950M+309.1%
Total Assets

$17.4B

Previous: $16.1B+8.3%
Stock-Based Comp

$55M

Previous: $66M-16.7%

Revenue & EPS history

Cognizant · Revenue · Quarterly

$4.23B

Q1 2020+2.8%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Cognizant · $4.23B total across 4 segments · Q1 2020

  • Financial Services
    $1.45B+1.0%
  • Health Sciences
    $1.19B+2.5%
  • Products and Resources
    $954M+4.4%
  • Communications, Media and Technology
    $626M+5.2%

Forward guidance

Given the continued uncertainty around the duration of the COVID-19 pandemic and its impact on our ability to forecast performance, we are not providing guidance at this time.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.0%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.2%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+12.6%

Q4 2019

Best reaction

-17.9%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-5.2%+1.8%
Q4 2025+2.5%+0.1%-11.1%
Q3 2025+5.6%+7.2%+14.6%
Q1 2025+2.3%+5.5%+10.1%
Q4 2024+4.2%+5.1%-0.4%
Q3 2024-1.2%-0.8%+6.6%
Q2 2024+0.6%-5.4%+2.6%
Q1 2024+0.9%+1.1%+0.7%
Q4 2023+0.5%-0.6%-0.2%
Q3 2023-1.3%+2.8%+9.8%
Q2 2023+7.0%+8.3%+8.9%
Q1 2023+5.9%+3.8%+7.4%
Q4 2022-0.9%-1.9%-9.2%
Q3 2022-16.9%-14.0%-0.2%
Q2 2022-1.8%-0.7%-5.0%
Q1 2022-9.7%-6.5%-9.8%
Q4 2021-0.4%+1.5%+2.8%
Q3 2021-1.8%-1.0%-0.4%
Q2 2021+6.9%+6.6%+11.7%
Q1 2021-7.5%-8.9%-12.0%
Q4 2020-6.7%-5.2%-7.9%
Q3 2020-3.2%-3.5%+6.8%
Q2 2020+10.4%+8.6%+8.1%
Q1 2020-0.7%-7.6%+0.4%
Q4 2019+12.6%+9.4%-8.2%
Q3 2019+0.8%+2.7%+6.1%
Q2 2019+1.7%-5.0%-6.0%
Q1 2019-17.9%-18.9%-14.2%
Q4 2018+2.5%+2.5%-0.1%
Q3 2018-0.3%+0.4%+1.6%
Q2 2018-5.2%-4.9%-4.5%
Q1 2018-8.1%-6.8%-4.9%
Q4 2017+1.7%+4.8%+14.6%
Q3 2017-1.7%-1.2%-5.7%
Q2 2017+3.9%+2.6%+3.4%
Q1 2017+5.8%+5.3%+11.1%
Q4 2016+7.8%+7.2%+9.2%
Q3 2016+5.4%+3.6%+9.6%
Q2 2016-0.8%-2.1%-0.7%
Q1 2016+5.6%
Q4 2015-10.6%
Q3 2015-1.4%
Q2 2015+6.0%
Q1 2015+3.1%
Q4 2014+4.6%
Q3 2014+8.6%
Q2 2014-11.2%
Q1 2014-2.4%
Q4 2013-1.6%
Q3 2013+4.4%
Q2 2013+0.5%
Q1 2013+5.5%
Q4 2012+3.2%
Q3 2012-3.1%
Q2 2012+0.3%
Q1 2012-13.4%
Q4 2011-0.9%
Q3 2011-1.1%
Q2 2011-6.6%
Q1 2011+1.0%
Q4 2010-0.8%
Q3 2010-2.0%
Q2 2010+0.5%
Q1 2009+6.2%
Q1 2010-1.2%
Q4 2009-0.1%
Q4 2007-0.1%
Q3 2009+3.3%
Q3 2008+3.3%
Q2 2009-0.1%
Q2 2008-0.1%
Q4 2008-0.1%

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