Core Insights - Cognizant's international operations are crucial for assessing its financial resilience and growth prospects [1][2] - The company's total revenue for the quarter ended December 2024 was $5.08 billion, reflecting a year-over-year increase of 6.8% [4] International Revenue Breakdown - The United Kingdom contributed $445 million, accounting for 8.76% of total revenue, which was a surprise decrease of -5.4% compared to expectations [5] - Continental Europe generated $494 million, representing 9.72% of total revenue, with a positive surprise of +1.06% over estimates [6] - The Rest of World segment brought in $321 million, making up 6.32% of total revenue, which was a negative surprise of -13.18% compared to projections [7] Future Projections - Analysts expect Cognizant to report total revenue of $5.06 billion in the current fiscal quarter, indicating a 6.2% increase year-over-year [8] - For the full year, total revenue is projected to reach $20.65 billion, a rise of 4.6% from the previous year, with regional contributions expected from the UK, Continental Europe, and Rest of World [9] Market Context - Cognizant's reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting [10] - The company's stock has increased by 14.4% over the past month, outperforming the S&P 500's 2.1% increase, indicating strong market performance [12]

Core Insights - Cognizant has entered a three-year strategic partnership with Upsource by Solutions to enhance operational efficiencies and customer satisfaction in Saudi Arabia [1][2][3] - The collaboration will provide access to advanced Intuitive Operations & Automation (IOA) solutions, including a Gen AI-powered financial suite and automation frameworks [2][4] - The partnership aims to drive digital transformation in the BPO industry, which is experiencing a significant shift towards outsourcing essential processes [3][4] Company Overview - Cognizant is a leading technology company that helps clients modernize technology and transform business processes [5] - Upsource by Solutions is a premier BPO provider in Saudi Arabia, operating over 100 clients and employing more than 9,000 people [5][6] - Upsource by Solutions is recognized for its operational excellence and employee-centric practices, having earned multiple industry awards [6]

Group 1 - Cognizant and KBC Group have renewed their partnership agreement, extending it until 2027, focusing on IT services to support KBC's business transformation [1][2] - The collaboration has lasted over 11 years, characterized by mutual trust and a commitment to quality, stability, and cost-effectiveness [3][4] - KBC Group is a leading financial group in Europe, primarily serving retail clients, SMEs, and local midcaps, with significant positions in Belgium, Czech Republic, Bulgaria, Hungary, and Slovakia [5][6] Group 2 - KBC Group employs approximately 41,000 staff and serves around 13 million clients in its core markets [6] - The renewal of the agreement emphasizes the importance of innovative solutions and operational excellence in achieving KBC's organizational objectives [3][4] - Cognizant's extensive experience in IT services is expected to enhance quality and foster innovation for KBC Group [4]

Financial Performance - Q4 2024 - Revenue increased by 68% year-over-year to $5082 million[3,4] - GAAP diluted EPS decreased slightly to $110 from $111 in Q4 2023[6] - Adjusted diluted EPS increased to $121 from $118 in Q4 2023[6] - GAAP operating margin decreased to 148% from 152% in Q4 2023[7] - Adjusted operating margin decreased to 157% from 161% in Q4 2023[7] Financial Performance - FY 2024 - Revenue increased by 20% year-over-year to $19736 million[11,15] - GAAP diluted EPS increased to $451 from $421 in 2023[12] - Adjusted diluted EPS increased to $475 from $455 in 2023[12] - GAAP operating margin increased to 147% from 139% in 2023[16] - Adjusted operating margin increased to 153% from 151% in 2023[16] Revenue Breakdown - Q4 2024 - Products & Resources segment revenue increased by 113% year-over-year[21] - Health Sciences segment revenue increased by 104% year-over-year[21] - Financial Services segment revenue increased by 29% year-over-year[21] - Communications, Media & Technology segment revenue increased by 09% year-over-year[21] - North America revenue increased by 23% year-over-year[21] - Europe revenue increased by 35% year-over-year[21] - Rest of World revenue increased by 83% year-over-year[21] Bookings and Employee Metrics - Trailing twelve-month bookings increased by 3% year-over-year to $271 billion[47] - Q4 2024 bookings increased 11% year-over-year[47]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $5.1 billion, up 6.7% year-over-year in constant currency, marking a high point for year-over-year revenue growth [19][37] - Full year revenue reached $19.7 billion, increasing 1.9% year-over-year in constant currency [38] - Adjusted operating margin improved sequentially to 15.7%, with full-year performance exceeding expectations at 15.3%, representing a 20 basis points year-over-year expansion [22][39] Business Line Data and Key Metrics Changes - Health Sciences segment led with over 10% revenue growth, driven by strong performance in TriZetto, a software platform for healthcare claims processing [20][21] - Financial Services segment grew approximately 3%, supported by increased demand for cloud, data, and modernization services [38][41] - Products & Resources segment growth was driven by Belcan, despite facing pressure from cautious discretionary spending across various end markets [42] Market Data and Key Metrics Changes - North America saw growth of more than 8% year-over-year, supported by Health Sciences, Belcan, and banking and financial services [45] - Europe grew by about 1% year-over-year, with strength in Health Sciences and Financial Services offset by softness in Products and Resources [45] - The rest of the world increased about 4% year-over-year, reflecting solid growth across most segments [45] Company Strategy and Development Direction - The company aims to return to top-quartile revenue growth while steadily expanding margins over time, focusing on strategic priorities such as accelerating growth, becoming an employer of choice, and modernizing operations [8][35] - Significant advancements were made in AI capabilities, with the introduction of several AI-powered platforms and strategic acquisitions to enhance service offerings [10][11] - The company is positioning itself as a trusted transformation partner, particularly in establishing Global Capability Centers (GCCs) to enhance operational efficiency for clients [27][134] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting a return of discretionary spending and improved visibility into future growth [78][125] - The company anticipates continued momentum in large deal signings and bookings, with a strong pipeline of opportunities across various sectors [62][70] - The outlook for 2025 includes expected revenue growth of 2.6% to 5.1%, with contributions from recent acquisitions and a focus on AI and automation to drive productivity [52][54] Other Important Information - The company completed its NextGen program, which contributed to improved operational efficiency and margin performance [16][39] - Free cash flow for the fourth quarter was $837 million, bringing the full year total to $1.8 billion, representing 82% of net income [49][50] - The company plans to return approximately $1.2 billion to shareholders in 2025, balancing capital return with investments in growth [58][59] Q&A Session Summary Question: Thoughts on bookings momentum and large deals - Management noted strong momentum in large deals, with 29 deals over $100 million signed in 2024 compared to 17 in 2023, indicating a sustainable rhythm for future bookings [62][63] Question: Growth outlook across different industries - Management highlighted broad-based growth across healthcare, financial services, and products/resources, with optimism for continued momentum in 2025 [70][72] Question: Organic growth guidance and discretionary spending - Management indicated that the guidance reflects conservatism due to visibility into the second half of the year, but expressed optimism about discretionary spending returning [78][79] Question: Investment in AI and its impact - Management emphasized the importance of AI in driving productivity and innovation, with numerous projects underway to leverage AI capabilities [82][86] Question: Sustainability of proprietary AI solutions - Management discussed the evolving role of system integrators and the potential for proprietary solutions to address gaps in existing software, ensuring sustainability [94][96] Question: Contribution of Belcan to growth - Management confirmed that Belcan is expected to contribute approximately 250 basis points to growth in 2025, with no additional inorganic contributions factored in [121] Question: Client budget and decision-making environment - Management characterized the current environment as pro-business, with expectations of increased discretionary spending and a focus on innovation [125][128]

Core Viewpoint - Cognizant Technology Solutions Corporation held its Q4 2024 earnings conference call, discussing financial results and future outlook [1][2]. Group 1: Earnings Results - The company released its earnings results for Q4 and the full year 2024, which are available on its website [3]. - Key executives participating in the call include Ravi Kumar, CEO, and Jatin Dalal, CFO [3]. Group 2: Forward-Looking Statements - The call included forward-looking statements that are subject to risks and uncertainties, as outlined in the company's earnings release and SEC filings [4]. - Non-GAAP financial measures were referenced, with reconciliations to GAAP measures available in the earnings release and SEC filings [5].

Core Insights - Cognizant reported revenue of $5.08 billion for the quarter ended December 2024, reflecting a year-over-year increase of 6.8% and surpassing the Zacks Consensus Estimate by 0.49% [1] - The earnings per share (EPS) for the quarter was $1.21, up from $1.18 in the same quarter last year, exceeding the consensus EPS estimate of $1.12 by 8.04% [1] Revenue Breakdown - Revenue from Products and Resources was $1.30 billion, exceeding the average estimate of $1.28 billion by analysts, marking an 11.4% increase year-over-year [4] - Revenue from Health Sciences reached $1.54 billion, surpassing the average estimate of $1.50 billion, with a year-over-year growth of 10.4% [4] - Revenue from Financial Services was $1.44 billion, slightly below the average estimate of $1.49 billion, representing a 2.9% year-over-year increase [4] - Revenue from Communications, Media, and Technology was $811 million, exceeding the average estimate of $803.52 million, with a year-over-year change of 0.9% [4] Stock Performance - Cognizant's shares have returned 10.5% over the past month, outperforming the Zacks S&P 500 composite, which saw a 1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Cognizant (CTSH) came out with quarterly earnings of $1.21 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.04%. A quarter ago, it was expected that this information technology consulting and outsourcing firm would post earnings of $1.14 per share when it actually produced earnings of $1.25, delivering a surprise of 9.65%.Ov ...

Cognizant Technology Solutions experienced a robust fourth quarter, surpassing both analyst estimates and its management's guidance.Cognizant Technology Solutions (CTSH 0.07%), a professional services company specializing in consulting and outsourcing, delivered its Q4 2024 results on Feb. 5, 2025. The earnings report revealed notable beats in both revenue and adjusted EPS. Revenue came in at $5.1 billion, surpassing the expected $5.07 billion. Adjusted EPS reached $1.21, exceeding predictions by $0.09. Ove ...

Cognizant Reports Fourth Quarter and Full-Year 2024 Results TEANECK, N.J., February 5, 2025 - Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its fourth quarter and full-year 2024 financial results. Exhibit 99.1 Constant currency ("CC") revenue growth, Adjusted Operating Margin, Adjusted Diluted Earnings Per Share ("Adjusted Diluted EPS") and free cash flow are not measures of financial performance prepared in accordance with GAAP. A full reconciliation ...