- Cognizant’s 2025 revenue forecast is set between $20.3 billion and $20.8 billion, which is below the estimated $20.93 billion.
- The 2025 adjusted Earnings per Share (EPS) forecast is between $4.90 and $5.06, with an estimate of $4.97.
- For the fourth quarter, Adjusted EPS came in at $1.21, surpassing the previous year’s $1.18 and beating the estimate of $1.12.
- Fourth-quarter revenue was $5.08 billion, a 6.8% increase year over year, slightly above the estimate of $5.07 billion.
- Products & Resources revenue was $1.30 billion, an 11% year-over-year increase, but below the estimate of $1.32 billion.
- Communications, Media & Technology revenue reached $811 million, a 0.9% rise year over year, under the estimate of $818.6 million.
- Healthcare revenue reported at $1.54 billion, a 10% increase year over year, exceeding the estimate of $1.48 billion.
- The company expects 3.5% to 6.0% constant currency revenue growth and a 20 to 40 basis point expansion in full-year Adjusted Operating Margin for 2025.
- Full-year adjusted operating margin is projected to be between 15.5% and 15.7% for 2025.
- The first-quarter revenue forecast is between $5.0 billion and $5.1 billion, indicating growth of 5.6% to 7.1%, or 6.5% to 8.0% in constant currency.
- Analyst recommendations include 6 buys, 19 holds, and 2 sells.
Cognizant Tech Solutions A on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely following Cognizant Technology Solutions. According to Baptista Research, Cognizant recently released its third-quarter financial results for 2024. The company reported revenues of $5 billion, with a sequential growth of 3.5% in constant currency. This growth was partly fueled by strategic acquisitions. Despite incremental investments, Cognizant managed to improve its adjusted operating margin to 15.3% sequentially, demonstrating disciplined cost management.
In another report by Baptista Research, Cognizant’s performance in the second quarter of 2024 was evaluated. The company showed a mixed financial health and operational execution picture. Through strategic acquisitions and operational efficiencies, Cognizant exceeded revenue and margin expectations. However, there were concerns about a year-over-year revenue decline and ongoing pressure in specific industry sectors. Notably, Cognizant’s Q2 revenue reached $4.85 billion, surpassing guidance expectations with a sequential growth of 2.1% in constant currency, the highest since 2022.
A look at Cognizant Tech Solutions A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores analysis, Cognizant Tech Solutions A shows promising long-term potential. With solid scores in Growth, Resilience, and Momentum, the company seems well-positioned for future success. A score of 4 in Growth indicates positive growth prospects, while scores of 4 in Resilience and Momentum suggest strength and stability. Although the Value and Dividend scores are at 3, the higher scores in other areas are likely to drive overall performance and investor confidence.
Cognizant Technology Solutions Corporation, a provider of IT consulting, technology, and outsourcing services, has key strengths in technology strategy consulting, complex systems development, and enterprise software implementation. This diversified business model, combined with strong scores in Growth, Resilience, and Momentum from Smartkarma, paints a favorable picture for the company’s long-term outlook. Investors may find Cognizant Tech Solutions A to be a promising investment opportunity based on these indicators.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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