Cognizant Reports Third Quarter 2024 Results

Core Insights - Cognizant reported third quarter 2024 revenue of $5.0 billion, reflecting a year-over-year increase of 3.0% or 2.7% in constant currency, which is at the high end of the guidance range [1][3] - The operating margin remained flat sequentially at 14.6%, with a year-over-year increase of 60 basis points [1][3] - Adjusted Operating Margin was 15.3%, showing a sequential increase of 10 basis points but a decrease of 20 basis points year-over-year [1][3] - The company signed six large deals in the third quarter, each exceeding $100 million, bringing the year-to-date total to 19, surpassing the total for the full year 2023 [2] Financial Performance - Revenue for Q3 2024 was $5.04 billion compared to $4.90 billion in Q3 2023, marking a 3.0% increase [3] - GAAP Diluted EPS for Q3 2024 was $1.17, up from $1.04 in Q3 2023 [3] - Year-to-date operating margin for 2024 was 14.6%, an increase of 110 basis points year-over-year [1][3] Segment Performance - Health Sciences segment grew by 7.8% year-over-year, while Financial Services returned to growth with a 0.7% increase [1][3] - The Products and Resources segment reported a 5.0% increase year-over-year [32] Guidance - Full-year 2024 revenue guidance is narrowed to a growth range of 1.4% to 1.9% in constant currency [1][8] - Fourth quarter revenue is expected to be between $5.0 billion and $5.1 billion, representing a growth of 5.1% to 7.1% [8] Strategic Initiatives - Cognizant completed the acquisition of Belcan for approximately $1.3 billion, enhancing its engineering capabilities in the ER&D market [10] - The company announced new AI-driven platforms and partnerships, including collaborations with NVIDIA and AWS, aimed at enhancing data modernization and smart manufacturing capabilities [12][10] Shareholder Returns - During Q3 2024, Cognizant repurchased 3.1 million shares for $228 million, with $1.4 billion remaining under the share repurchase authorization [7] - A quarterly cash dividend of $0.30 per share was declared, payable on November 27, 2024 [7]