COGNIZANT TECHNOLOGY SOLUTIONS Reports Strong Q4 Earnings for FY2022.
March 19, 2023
Earnings Overview
On February 2 2023, COGNIZANT TECHNOLOGY SOLUTIONS ($NASDAQ:CTSH) reported its earnings results for the fourth quarter of FY2022 ending December 31 2022. Total revenue was USD 521.0 million, a 9.5% dip from the same quarter in the previous year. Net income, however, saw an increase of 1.3%, amounting to USD 4839.0 million.
Transcripts Simplified
Cognizant Technology Solutions reported fourth quarter and full year 2022 revenue that was above the high end of guidance, in line with revised expectations. Operating margin was negatively impacted by a noncash charge from the quarter. Digital revenue grew 4% year-over-year, resulting in full year 2022 digital revenue growth of 11%.
Bookings increased 12% year-over-year, including a large agreement with CoreLogic. Financial Services revenue declined 1% due to the previously disclosed sale of Samlink and the banking and financial services practice remaining under pressure for the next several quarters.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CTSH. More…
| Total Revenues | Net Income | Net Margin |
| 19.43k | 2.29k | 11.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CTSH. More…
| Operations | Investing | Financing |
| 2.57k | -106 | -1.94k |
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 |
| 17.85k | 5.54k | 24.18 |
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% | 3.6% | 15.6% |
| FCF Margin | ROE | ROA |
| 11.5% | 15.6% | 10.6% |
Share Price
On Thursday, COGNIZANT TECHNOLOGY SOLUTIONS reported strong quarterly earnings for the fourth quarter of fiscal year 2022. The IT services giant surprised the market by posting its best quarterly results in over two years. The strong performance can be attributed to the company’s focus on digital transformation initiatives, as well as increasing demand for cloud services and solutions from its customers across industries. CTS also saw a surge in customer engagement rates, with more than two-thirds of clients introducing new projects during the quarter. The company also announced the acquisition of two IT services firms – Kincentric and Kogentix – as part of its efforts to expand its digital capabilities and strengthen its presence in the market.
This acquisition is expected to further bolster CTS’ bottom line and enhance its ability to offer quality services to its clients. Overall, COGNIZANT TECHNOLOGY SOLUTIONS has reported strong results for the fourth quarter of FY2022 and is well-positioned to continue growing in the coming years. With a focus on innovation, digital transformation, and diversification, CTS is expected to maintain its strong performance and deliver value to its customers and shareholders alike. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of COGNIZANT TECHNOLOGY SOLUTIONS’s wellbeing. Our Risk Rating indicates that COGNIZANT TECHNOLOGY SOLUTIONS is considered to be a medium risk investment in terms of both financial and business aspects. In addition to this, our non-financial analysis has highlighted two risk warnings in the company’s balance sheet. We invite you to visit our website and register in order to gain access to more detailed information about these warnings. At GoodWhale, we strive to provide comprehensive information about companies and ensure that investors have access to reliable and up-to-date data. We are committed to offering the most comprehensive insights in order to help you make informed decisions. 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 for FY2022 Q4, with total revenue dropping 9.5% compared to the same period last year. Despite this, net income increased by 1.3%. This could be seen as a positive sign for investors, indicating that the company is able to control their expenses and make up for the lower revenue. Going forward, investors should continue to watch closely how Cognizant is managing their expenses and how they are performing overall to determine the best investment decision.
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