Cognizant Technology Solutions Reports Second Quarter Earnings with Total Revenue of USD 4886.0 Million

☀️Earnings Overview

On August 2 2023, COGNIZANT TECHNOLOGY SOLUTIONS ($NASDAQ:CTSH) released their financial results for the second quarter of FY2023, showing a total revenue of USD 4886.0 million, a slight decrease of 0.4% year-on-year. Net income for the quarter was USD 463.0 million, a 19.8% decrease from the same period in the previous year.

Price History

The stock opened at $65.4 and closed at $65.3, representing a decrease of 0.8% from the previous closing price of $65.8. While the stock performance was not as strong as the company had hoped, the quarter was still a success financially. The year-over-year growth was driven by strong performance in industries like healthcare and life sciences.

In addition, Cognizant Technology Solutions also saw an increase in new project wins in the quarter. The company is well-positioned for continued growth in the future, as it has continued to invest in its technology solutions and services. This includes investing in digital transformation, cloud computing, data analytics, and other cutting-edge technologies. In addition, Cognizant Technology Solutions has made strategic investments in several companies and is in the process of expanding its portfolio of services. Cognizant Technology Solutions is continuing to focus on delivering innovative solutions to its clients and is well-positioned to capitalize on the growth of the digital economy. The company remains committed to meeting the needs of its customers and creating long-term value for its shareholders. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for CTSH. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for CTSH. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for CTSH. More…

Key Ratios Snapshot

Some of the financial key ratios for CTSH are shown below. More…

Analysis

At GoodWhale, we conducted an analysis of COGNIZANT TECHNOLOGY SOLUTIONS’s wellbeing. Our Star Chart categorizes the company as strong in dividend, profitability, and medium in asset, and weak in growth. In addition, our health score for COGNIZANT TECHNOLOGY SOLUTIONS is 10/10 which indicates that the company is capable to safely ride out any crisis without the risk of bankruptcy. As such, we classify COGNIZANT TECHNOLOGY SOLUTIONS as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. This type of company may be of particular interest to investors looking for an opportunity to invest in a steady and reliable dividend-paying company. Furthermore, the company’s health score of 10/10 indicates that the company is in a strong financial position and is likely to remain so in the event of economic downturns. As such, investors may be attracted to the long-term security and stability offered by investing in this type of company. 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 earnings results for the second quarter of FY2023, with a total revenue of USD 4886.0 million and net income of USD 463.0 million, down 0.4% and 19.8% respectively compared to the same period a year ago. Investors should take note of the significant declines in both revenue and net income, especially in light of the strong growth seen in prior years. To determine the company’s future prospects, investors will need to analyze Cognizant’s strategy going forward, as well as any external factors that may affect the company’s performance.