Cognizant (CTSH) Q3 Earnings and Revenues Beat Estimates

Core Insights - Cognizant (CTSH) reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, and showing an increase from $1.16 per share a year ago, resulting in an earnings surprise of 9.65% [1] - The company achieved revenues of $5.04 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.82% and up from $4.9 billion year-over-year [2] - Cognizant has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance in earnings [2] Earnings Outlook - The future performance of Cognizant's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.18 on revenues of $5.09 billion, while for the current fiscal year, the estimate is $4.62 on revenues of $19.7 billion [7] Industry Context - The Business - Software Services industry, to which Cognizant belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Cognizant's stock may also be influenced by the overall industry outlook, as empirical research indicates a strong correlation between stock movements and earnings estimate revisions [5][8]