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Revenue: $5.1 billion, up 6.7% year over year in constant currency for Q4 2024.
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Full-Year Revenue: $19.7 billion, increased 1.9% year over year in constant currency.
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Adjusted Operating Margin: 15.7% for Q4 2024; full-year margin of 15.3%.
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Health Sciences Revenue Growth: Over 10% year over year.
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Financial Services Revenue Growth: Approximately 3% year over year.
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Free Cash Flow: $837 million for Q4 2024; $1.8 billion for the full year.
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Cash and Short-term Investments: $2.2 billion at year-end.
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Net Cash: $1.3 billion at year-end.
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Bookings Growth: 11% year over year for Q4 2024.
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Full-Year EPS Guidance for 2025: $4.90 to $5.06, representing 3% to 7% growth.
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Expected Revenue Growth for 2025: 2.6% to 5.1% or 3.5% to 6% in constant currency.
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Expected Adjusted Operating Margins for 2025: 15.5% to 15.7%.
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Capital Returned to Shareholders in 2024: $1.2 billion through share repurchases and dividends.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Cognizant Technology Solutions Corp (NASDAQ:CTSH) reported strong year-over-year revenue growth of 6.7% in constant currency for Q4 2024, driven by large deal signings and improved organic growth.
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The company successfully completed its NextGen program, which contributed to an improved adjusted operating margin of 15.7% for the quarter.
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Cognizant Technology Solutions Corp (NASDAQ:CTSH) expanded its AI capabilities significantly, introducing new platforms like Flowsource, Neuro Edge, and Neuro Cybersecurity, enhancing its service offerings.
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The company achieved a historic high in client satisfaction scores (NPS) in 2024, indicating strong customer relationships and service quality.
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Strategic acquisitions, such as Thirdera and Belcan, have strengthened Cognizant Technology Solutions Corp (NASDAQ:CTSH)’s market position and contributed to its growth in new end markets.
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Despite the positive revenue growth, the adjusted operating margin for the year declined by 40 basis points year-over-year, primarily due to the impact of acquisitions and increased compensation costs.
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The Products and Resources segment faced pressure due to a cautious discretionary environment across end markets like automotive, aerospace, and manufacturing.
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Communication, Media, and Technology segments experienced consistent pressure as clients focused on cost optimization, impacting discretionary spending.
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The company anticipates a modest sequential margin decline in Q1 2025 due to typical seasonality, which may affect short-term profitability.
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Cognizant Technology Solutions Corp (NASDAQ:CTSH) faces challenges in maintaining momentum in smaller deals, which are crucial for immediate revenue realization.