Cognizant (CTSH) Q2 Earnings and Revenues Surpass Estimates

Company Performance - Cognizant reported quarterly earnings of $1.31 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and up from $1.17 per share a year ago [1] - The earnings surprise for the quarter was +3.97%, following a previous surprise of +3.36% in the last quarter [2] - The company achieved revenues of $5.25 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.01%, and an increase from $4.85 billion year-over-year [3] Future Outlook - The sustainability of Cognizant's stock price movement will depend on management's commentary during the earnings call [4] - The current consensus EPS estimate for the upcoming quarter is $1.28 on revenues of $5.26 billion, and for the current fiscal year, it is $5.07 on revenues of $20.84 billion [8] - The estimate revisions trend for Cognizant was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Computers - IT Services industry, to which Cognizant belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Cognizant's performance [6]