NASDAQ$CTSH

Cognizant Technology Solutions Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Delivered first quarter commitments amidst a competitive labor market.

Cognizant's Q1 2022 revenue reached $4.8 billion, a 9.7% year-over-year increase, with digital revenue growing by 20%. Bookings grew by 4% year-over-year, resulting in trailing 12-month bookings of $23.4 billion and a book-to-bill ratio of 1.2x. The company's full-year 2022 revenue growth guidance is set at 7.2% to 9.2%.

  • Revenue of $4.8 billion grew 9.7% year-over-year, or 10.9% in constant currency.
  • Digital revenue grew 20% year-over-year.
  • Bookings grew 4% year-over-year, with a trailing 12-month bookings of $23.4 billion, 1.2x book-to-bill.
  • Operating cash flow was $306 million, and free cash flow was $186 million.

Headline financials

Total Revenue

$4.83B

Previous: $4.4B+9.7%
EPS (adj)

$1.08

Previous: $0.97+11.3%
Trailing 12-month Bookings

$23.4B

No prior period
Capital Expenditures

-$120M

Previous: -$88M-36.4%
Free Cash Flow

$443M

Previous: $417M+6.2%
Net Income

$563M

Previous: $505M+11.5%
Operating Income

$724M

Previous: $669M+8.2%
Gross Profit

$1.73B

Previous: $1.64B+5.6%
Cash & Equivalents

$2.19B

Previous: $1.97B+11.1%
Total Assets

$17.4B

Previous: $16.7B+4.6%
Stock-Based Comp

$56M

Previous: $62M-9.7%

Revenue & EPS history

Cognizant · Revenue · Quarterly

$4.83B

Q1 2022+9.7%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cognizant · $4.83B total across 4 segments · Q1 2022

  • Financial Services
    $1.53B+4.8%
  • Health Sciences
    $1.39B+8.1%
  • Products and Resources
    $1.13B+13.2%
  • Communications, Media and Technology
    $776M+18.1%

Forward guidance

The Company provided the following guidance: •Second quarter revenue is expected to be $4.90-$4.94 billion, or growth of 6.8%-7.8% (9.3%-10.3% in constant currency). •Full-year 2022 revenue is expected to be $19.8-$20.2 billion, or growth of 7.2%-9.2% (9.0%-11.0% in constant currency). •Full-year 2022 Adjusted Operating Margin2 is expected to expand 20 to 30 basis points to 15.6% to 15.7%.2 •Full-year 2022 Adjusted Diluted EPS2 is expected to be in the range of $4.45-$4.55.

Tailwinds

  • Second quarter revenue is expected to be $4.90-$4.94 billion, or growth of 6.8%-7.8% (9.3%-10.3% in constant currency).
  • Full-year 2022 revenue is expected to be $19.8-$20.2 billion, or growth of 7.2%-9.2% (9.0%-11.0% in constant currency).
  • Full-year 2022 Adjusted Operating Margin is expected to expand 20 to 30 basis points to 15.6% to 15.7%.
  • Full-year 2022 Adjusted Diluted EPS is expected to be in the range of $4.45-$4.55.

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 2022

Historical avgQ1 2022

+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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