NASDAQ$CTSH

Cognizant Technology Solutions Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Cognizant reported Q4 2021 earnings with revenue of $4.8 billion and EPS of $1.10.

Cognizant's Q4 2021 results showed strong revenue growth, driven by digital services and recent acquisitions. The company's financial performance reflects its strategic focus on enhancing its digital portfolio and strengthening its international presence.

  • Q4 revenue reached $4.8 billion, and full-year revenue was $18.5 billion.
  • Digital revenue experienced substantial growth, with a 20% increase in Q4 and 19% for the full year.
  • Q4 bookings grew by 22% year-over-year, resulting in a full-year book-to-bill ratio of 1.2x.
  • The company anticipates full-year 2022 revenue growth between 7.8% and 10.8%.

Headline financials

Total Revenue

$4.78B

Previous: $4.18B+14.2%
EPS (adj)

$1.10

Previous: $0.67+64.2%
Trailing 12-month Bookings

$23.1B

No prior period
Capital Expenditures

$65M

Previous: $89M-27.0%
Free Cash Flow

$760M

Previous: $809M-6.1%
Net Income

$576M

Previous: $316M+82.3%
Operating Income

$732M

Previous: $465M+57.4%
Gross Profit

$1.75B

Previous: $1.52B+14.8%
Cash & Equivalents

$1.79B

Previous: $2.68B-33.1%
Total Assets

$17.9B

Previous: $16.9B+5.5%
Stock-Based Comp

$52M

Previous: $54M-3.7%

Revenue & EPS history

Cognizant · Revenue · Quarterly

$4.78B

Q4 2021+14.2%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Cognizant · $4.78B total across 4 segments · Q4 2021

  • Financial Services
    $1.55B+18.5%
  • Health Sciences
    $1.37B+7.9%
  • Products and Resources
    $1.12B+17.7%
  • Communications, Media and Technology
    $744M+12.6%

Forward guidance

Cognizant provided revenue and adjusted operating margin and adjusted diluted EPS guidance for Q1 and full year 2022.

Tailwinds

  • First quarter revenue is expected to be $4.80-$4.84 billion, or growth of 9.0-10.0% (10.2-11.2% in constant currency).
  • Full-year 2022 revenue is expected to be $20.0-$20.5 billion, or growth of 7.8%-10.8% (8.5%-11.5% 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 $4.46-$4.60.

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 Q4 2021

Historical avgQ4 2021

+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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