Revenue of
Operating margin of 14.6%, flat year-over-year, and Adjusted Operating Margin1 of 15.1%, which expanded 50 basis points year-over-year
Trailing 12-month bookings of
2024 revenue guidance unchanged at (2.0%) to 2.0% in constant currency
2024 Adjusted Operating Margin guidance unchanged at 15.3-15.5%, representing year-over-year expansion of 20 to 40 basis points
Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its first quarter 2024 financial results.
'During the first quarter, we delivered revenue above the high-end of our guidance range and continued to make progress against our strategic priorities,' said Ravi Kumar S, Chief Executive Officer. 'We have built upon our large deal momentum of 2023, signing eight deals during the quarter, each with a total contract value of at least
Continue Reading
pdf?p=original
Q120224-Infographic-Cognizant
View File Download File
$ in billions, except per share data
Q1 2024
Q1 2023
Revenue
Y/Y Change
(1.1 %)
(0.3 %)
Y/Y Change CC1
(1.2 %)
1.5 %
GAAP Operating Margin
14.6 %
14.6 %
Adjusted Operating Margin1
15.1 %
14.6 %
GAAP Diluted EPS
Adjusted Diluted EPS1
1 Constant currency ('CC') revenue growth, Adjusted Operating Margin, and Adjusted Diluted Earnings Per Share ('Adjusted Diluted EPS') are not measures of financial performance prepared in accordance with GAAP. A full reconciliation of Adjusted Operating Margin guidance to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts. See 'About Non-GAAP Financial Measures and Performance Metrics' for more information and, as applicable, reconciliations to the most directly comparable GAAP financial measures.
'The first quarter's adjusted operating margin of 15.1% expanded by 50 basis points year-over-year, driven by our NextGen program. We remain focused on operational excellence and cost discipline as our clients continue to limit discretionary spending,' said
Bookings
Bookings in the first quarter declined 6% year-over-year. On a trailing-twelve-month basis, bookings grew 1% year-over-year to
Employee Metrics
Total headcount at the end of the first quarter was 344,400, a decrease of 3,300 from Q4 2023 and a decrease of 7,100 from Q1 2023. Voluntary attrition - Tech Services on a trailing-twelve months basis was 13.1% as compared to 23.1% for the period ended
Return of Capital to Shareholders
The Company repurchased 1.4 million shares for
Second Quarter and Full-Year 2024 Guidance2 (all growth rates year-over-year)
Second quarter revenue is expected to be
Full-year 2024 revenue is expected to be
Full-year 2024 Adjusted Operating Margin3 is expected to be in the range of 15.3% to 15.5%, or 20 to 40 basis points of expansion.
Full-year 2024 Adjusted EPS3 is expected to be in the range of
2 Guidance as of
3 A full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts. See 'About Non-GAAP Financial Measures and Performance Metrics' for more information and a partial reconciliation at the end of this release.
Select Client and Partnership Announcements
Signed agreement with
Expanded partnership with Microsoft that will leverage Microsoft Copilot and Cognizant's advisory and digital transformation services to help employees and enterprise customers operationalize generative AI and realize strategic business transformation. The partnership aims to make Microsoft's generative AI and Copilots available to millions of users, to transform enterprise business operations, enhance employee experiences and accelerate cross-industry innovation. As part of the partnership, Cognizant purchased 25,000 Microsoft 365 Copilot seats for Cognizant associates, along with 500 Sales Copilot seats and 500 Services Copilot seats to enhance productivity, streamline workflows and transform customer experiences.
Announced a collaboration with Microsoft to infuse generative AI into healthcare administration. The TriZetto Assistant on Facets will leverage Azure OpenAI Service and Semantic Kernel to provide access to generative AI within the
Announced a planned collaboration with FICO, a leading analytics software company, to launch a cloud-based real-time payment fraud prevention solution powered by FICO Falcon Fraud Manager. The joint offering would leverage both firms' artificial intelligence and machine learning (ML) capabilities to help banks and other payment service providers in
Announced a strategic alliance with Shopify and Google Cloud to drive digital transformation and platform modernization for global retailers and brands. By utilizing Shopify's commerce operating system, built on Google Cloud, along with the expansive suite of Google Cloud offerings, retailers are expected to have the foundational technology needed to enable Cognizant to execute impactful digital transformation services and deliver benefits across a range of retail scenarios.
Signed a new agreement to transform and manage the global technology infrastructure of
Extended strategic agreement with LexisNexis Legal & Professional, a leading global provider of information and analytics. Cognizant will provide cloud and digital engineering services to enhance customer experience on LexisNexis' next-gen legal research solution in the
Extended a strategic partnership with
Announced the combination of Cognizant's generative AI technology with the NVIDIA BioNeMo gen AI platform to solve complex challenges of drug discovery in the life sciences industry, such as improving productivity in the development process and increasing the speed at which new, life-saving treatments can be brought to market.
Unveiled an
Renewed Cognizant's long-standing relationship with Pon IT, which is part of the Dutch family-owned multinational
Selected by Clario, a healthcare research technology company that delivers leading endpoint technology solutions for clinical trials, to support its global IT infrastructure and applications. Cognizant services will provide automation and digital technologies that can reduce cost of service and speed time to market.
Renewed Cognizant's collaboration with
Select Analyst Ratings, Company Recognition and Announcements
Announced our Bluebolt grassroots innovation program, which launched a year ago in
Named as one of 'America's Most Innovative Companies 2024' by
Secured a number three ranking on the LinkedIn Top Companies in
Recognized as a Leader by
Retail IT Services PEAK Matrix Assessment, 2024
Pega Services PEAK Matrix Assessment, 2024
Financial Crime and Compliance (FCC) Operations Services PEAK Matrix Assessment, 2024
CPG IT Services PEAK Matrix Assessment, 2024
Intelligent Process Automation Services PEAK Matrix Assessment, 2024
Marketing Services PEAK Matrix Assessment, 2024
A Leader in IDC MarketScape:
Worldwide Professional Services in Railways and Airlines 2024 Vendor Assessment, doc #US51421623,
Market Leader in HFS Horizon 3:
Assuring the Generative Enterprise, 2024
Customer Experience Service Providers, 2024
Leadership in ISG Provider Lens:
Intelligent Automation Services and Solutions, 2023
Sustainability and ESG Services, 2024
Mainframe Services, 2024
Leadership in Avasant RadarViewTM:
Life Sciences Digital Services, 2024
Airlines and Airports Digital Services, 2024
Hybrid Enterprise Cloud Services, 2024
Intelligent Automation Services, 2024
Healthcare Payor Digital Services, 2024
Retail Digital Services, 2024
Manufacturing Digital Services, 2024
Leadership in NelsonHall NEAT Reports:
Salesforce Services, 2024
Conference Call
Cognizant will host a conference call on
The conference call will also be available live on the Investor Relations section of the Cognizant website at http://investors.cognizant.com. An earnings supplement will also be available on the Cognizant website at the time of the conference call. For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or +1 (201) 612-7415 (internationally) and enter 13744823 beginning two hours after the end of the call until
About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.
(C) 2024 Electronic News Publishing, source