Cognizant Delivers Strong Q3 Results, Raises Full-Year Guidance
Cognizant Technology Solutions reported robust Q3 financial results with growth across all segments. Adjusted EPS increased 11.2% to $1.39, while revenue grew 7.4% to $5.42 billion. The company raised its full-year revenue guidance to $21.05-21.10 billion. All business segments showed growth, with Products and Resources leading at 13%. Cognizant signed six major deals this quarter, bringing the year-to-date total to 16, representing a 40% increase in total contract value. The company added 6,000 employees, declared a quarterly dividend of $0.31 per share, and raised its constant currency revenue growth guidance to 6.0%-6.3%.
*this image is generated using AI for illustrative purposes only.
Cognizant Technology Solutions has reported robust financial results for the third quarter, showcasing growth across all segments and prompting an upward revision of its full-year guidance.
Financial Highlights
| Metric | Value | Change |
|---|---|---|
| Adjusted EPS | $1.39 | +11.2% |
| Revenue | $5.42 billion | +7.4% |
| Full-Year Revenue Guidance | $21.05-21.10 billion | Raised |
Segment Performance
Cognizant's growth was driven by strong performance across all its business segments:
| Segment | Revenue | Growth |
|---|---|---|
| Products and Resources | $1.38 billion | +13.0% |
| Financial Services | $1.58 billion | +6.2% |
| Healthcare | $1.60 billion | +5.9% |
| Communications, Media, and Technology | $850 million | +4.2% |
CEO Ravi Kumar S highlighted this as the fifth consecutive quarter of year-on-year organic revenue growth and the strongest sequential growth since 2022, underscoring the company's consistent performance.
Strategic Developments
Cognizant has made significant strides in its business development efforts:
- Signed six major deals during the quarter
- Year-to-date total of 16 deals, representing a 40% increase in total contract value
- Added 6,000 employees, bringing the total headcount to 349,800
Shareholder Returns
The company has declared a quarterly dividend of $0.31 per share.
Future Outlook
Cognizant has raised its constant currency revenue growth guidance to 6.0%-6.3%, signaling confidence in its growth prospects.
The strong quarterly performance, coupled with an optimistic outlook, positions Cognizant favorably in the competitive IT services landscape. The company's ability to grow across all segments and secure major deals indicates resilience and adaptability in a dynamic market environment.
18
