- Cognizant has increased its full-year adjusted earnings per share (EPS) forecast to $4.98 to $5.14, up from the previous forecast of $4.90 to $5.06.
- 2025 revenue guidance is now projected at $20.5 billion to $21.0 billion, slightly up from the previous range of $20.3 billion to $20.8 billion.
- The adjusted operating margin for 2025 remains unchanged at 15.5% to 15.7%.
- Revenue growth in constant currency is expected to be between 3.5% and 6% for the full year.
- Second-quarter revenue is forecast between $5.14 billion and $5.21 billion, with growth expected to be 5.9% to 7.4%, or 5% to 6.5% in constant currency.
- First quarter results showed an adjusted EPS of $1.23, higher than last year and estimates.
- Q1 revenue was $5.12 billion, reflecting a 7.5% year-over-year increase, surpassing the estimate.
- Financial Services revenue grew by 5.6% year-over-year, aligning with expectations.
- Products & Resources revenue increased by 13% year-over-year, slightly above estimates.
- Communications, Media & Technology revenue decreased by 2.7% year-over-year, falling short of estimates.
- Healthcare revenue saw an 11% year-over-year increase, exceeding estimates.
- CEO Ravi Kumar S emphasized the strong start to the year with revenue and operating margin exceeding expectations.
- CFO Jatin Dalal highlighted a 10% year-over-year growth in adjusted EPS, which outpaced revenue growth.
- The company received 6 buy ratings, 19 hold ratings, and 2 sell ratings.
Cognizant Tech Solutions A on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Cognizant Technology Solutions, highlighting the company’s execution of large strategic deals and acquisitions like Belcan that are expanding its market reach. In their report titled “Cognizant Technology Solutions: Executing Large-Sized Strategic Deals & Acquisitions Like Belcan Can Truly Widen Its Market Reach!” the analysts noted the company’s fourth-quarter and full-year 2024 financial outcomes, showcasing growth and strong strategic positioning in the tech landscape. With revenues reaching $5.1 billion in Q4, a 6.7% year-over-year increase in constant currency, driven by demand in key segments like Health Sciences and Financial Services, along with strategic acquisitions.
Furthermore, Baptista Research‘s report “Cognizant Technology Solutions: How Are They Expanding Service Portfolio Through Acquisitions? – Major Drivers” focuses on the company’s third-quarter 2024 earnings. Cognizant reported revenues of $5 billion for Q3, a sequential growth of 3.5% in constant currency and a year-over-year increase of 2.7%, partly attributed to acquisitions. The adjusted operating margin improved to 15.3% sequentially, reflecting disciplined cost management despite incremental investments and annual merit cycle effects. The analysts emphasize Cognizant’s strategic initiatives and financial performance as key drivers of continued growth and market success.
A look at Cognizant Tech Solutions A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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 Smart Scores, Cognizant Tech Solutions A shows a promising long-term outlook overall. With solid scores across various factors, including Value, Dividend, Growth, Resilience, and Momentum, the company seems well-positioned for future success. Cognizant Tech Solutions A‘s focus on providing custom IT consulting, technology services, and outsourcing services aligns well with its strong performance indicators, indicating a robust and stable business model.
Cognizant Technology Solutions Corporation, known for its expertise in technology strategy consulting, complex systems development, and enterprise software implementation and maintenance, demonstrates consistent performance across different key areas. The company’s resilience and momentum scores further support its potential for sustained growth and value creation, making Cognizant Tech Solutions A a company to watch in the long term.
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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