Cognizant Technology Solutions Announces Second Quarter FY2023 Financial Results
August 22, 2023
☀️Earnings Overview
On August 2 2023, COGNIZANT TECHNOLOGY SOLUTIONS ($NASDAQ:CTSH) revealed their financial results for the second quarter of FY2023 ending June 30 2023. Total revenue for the period stood in at USD 4886.0 million, a marginal drop of 0.4% year-over-year. Net income for the quarter, however, was USD 463.0 million, down by 19.8% compared to the same period of the previous year.
Price History
In addition to the strong financial performance, Cognizant also announced its efforts to upgrade its technology portfolio by investing in cloud-based solutions, AI, and data analytics services. The company plans to invest $3 billion in capital expenditure over the next three years to support these initiatives and drive future growth. In addition, Cognizant also plans to expand its geographic presence across emerging markets in the Asia Pacific region. These results indicate that the company is well positioned for continued success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CTSH. More…
| Total Revenues | Net Income | Net Margin |
| 19.39k | 2.19k | 11.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CTSH. More…
| Operations | Investing | Financing |
| 2.5k | -635 | -1.59k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CTSH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.97k | 5.06k | 25.55 |
Key Ratios Snapshot
Some of the financial key ratios for CTSH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.0% | 3.0% | 14.9% |
| FCF Margin | ROE | ROA |
| 11.2% | 14.1% | 10.0% |
Analysis
At GoodWhale, we have conducted an analysis of COGNIZANT TECHNOLOGY SOLUTIONS’s wellbeing. Our Star Chart showed that COGNIZANT TECHNOLOGY SOLUTIONS is strong in dividend, profitability, and medium in asset but weak in growth. We classified the company as a ‘cow’, a type of company we conclude that has the track record of paying out consistent and sustainable dividends. This makes it an attractive investment for investors looking for steady returns over time. In addition to this, COGNIZANT TECHNOLOGY SOLUTIONS has a high health score of 10/10 considering its cashflows and debt, which means that it is capable to sustain future operations in times of crisis. This is another factor that makes it an attractive option for investors looking for a reliable and safe investment. More…
Peers
Cognizant Technology Solutions Corp is a leading provider of information technology, consulting, and business process outsourcing services. It has a strong presence in India, the United States, and Europe. The company operates in four segments: Banking and Financial Services, Healthcare, Manufacturing, and Retail, Consumer Goods, and Logistics. Cognizant’s competitors include Accenture PLC, Genpact Ltd, Shunliban Information Service Co Ltd, and others.
– Accenture PLC ($NYSE:ACN)
Accenture PLC is a professional services company that provides consulting, technology, and outsourcing services. It has a market cap of 166.38B as of 2022 and a Return on Equity of 26.56%. The company operates in more than 200 countries and employs more than 373,000 people.
– Genpact Ltd ($NYSE:G)
Genpact is a global professional services firm that offers a range of services in the areas of consulting, digital transformation, technology, and operations. The company has a market cap of $8.29 billion and a return on equity of 17.54%. Genpact has a strong focus on digital transformation and offers a range of services that helps businesses to digitally transform their operations. The company has a strong client base and a strong track record in delivering results.
– Shunliban Information Service Co Ltd ($SZSE:000606)
Shunliban Information Service Co Ltd is a Chinese company that provides information services. It has a market cap of 1.34 billion as of 2022 and a return on equity of 130.37%. The company offers services such as data analysis, information management, and online marketing. It also provides software development and consultation services.
Summary
Cognizant Technology Solutions reported their financial results for the quarter ending June 30 2023, with total revenue of USD 4886.0 million, a 0.4% decrease compared to the same period in the previous year. Net income for the quarter was USD 463.0 million, a 19.8% decrease from the prior year. Investors should take note of these decreases when assessing their investment in Cognizant.
It is important to consider the factors that contributed to these declines, such as macroeconomic trends and changes in the industry. A thorough analysis of the company’s performance and outlook is necessary for informed investing decisions.
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