NASDAQ$CTSH
Cognizant Technology Solutions Corp · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
Cognizant reported strong fourth quarter and full-year 2024 financial results, with revenue growth at the high end of guidance and increased operating margins.
Cognizant delivered a strong performance in Q4 2024, with revenue reaching $5.082 billion, a 6.8% year-over-year increase. The company also reported diluted EPS of $1.10 and non-GAAP diluted EPS of $1.21, alongside significant full-year achievements including increased operating margin and strong bookings growth.
- Fourth quarter revenue of $5.1 billion increased 6.8% year-over-year or 6.7% in constant currency, at the high end of guidance range.
- Full-year operating margin of 14.7% increased 80 basis points year-over-year; Adjusted Operating Margin of 15.3% increased 20 basis points year-over-year.
- Trailing 12-month bookings of $27.1 billion, up 3% year-over-year, driven by 11% year-over-year fourth quarter bookings growth.
- $1.2 billion returned to shareholders through share repurchases and dividends in 2024.
Headline financials
Revenue & EPS history
Cognizant · Revenue · Quarterly
$5.08B
Revenue by segment
Cognizant · $4.9B total across 4 segments · Q3 2023
- Financial Services$1.48B-3.0%30.1%
- Health Sciences$1.41B+0.0%28.7%
- Products and Resources$1.17B+1.9%23.9%
- Communications, Media and Technology$847M+8.2%17.3%
Forward guidance
Cognizant expects continued growth in 2025, with revenue growth projected between 3.5% and 6.0% in constant currency and an expansion in Adjusted Operating Margin.
Tailwinds
- First quarter revenue is expected to be $5.0 - $5.1 billion, growth of 5.6% to 7.1%, or 6.5% to 8.0% in constant currency.
- Full-year 2025 revenue is expected to be $20.3 - $20.8 billion, growth of 2.6% to 5.1%, or 3.5% to 6.0% in constant currency.
- Full-year 2025 Adjusted Operating Margin is expected to be from 15.5% to 15.7%, or 20 to 40 basis points of expansion.
- Full-year 2025 Adjusted Diluted EPS is expected to be in the range of $4.90 to $5.06.
- The company expects improved cost structure to sustain strategic investments for profitable growth.
Headwinds
- No specific negative forward guidance points were explicitly stated in the provided text.
- The company notes that a full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to GAAP measures cannot be provided without unreasonable efforts due to the unpredictability of unusual items.
- Foreign currency exchange gains and losses are subject to high variability and low visibility, making them difficult to predict.
- The company does not update bookings for subsequent terminations, reductions or foreign currency exchange rate fluctuations, which could impact future revenue conversion.
- The majority of contracts are terminable by the client on short notice often without penalty, and some without notice, which introduces an element of risk to future revenue.
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 2024
+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
| Quarter | Report date | Reaction (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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