Revenue of
Operating Margin and Adjusted Operating Margin of 16.4%, an increase of 100 and 60 basis points year-over-year, respectively
Operating cash flow of
Over
Board of Directors approved an increase of
Revised full-year 2022 revenue growth guidance to 4.5%, or 7.0% in constant currency
Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its third quarter 2022 financial results.
'Revenue and bookings were below our expectations as company specific fulfillment challenges were compounded by the impact of an uncertain macroeconomic backdrop,' said
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[Cognizant Q3 2022 Earnings Infographic]
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Cognizant Q3 2022 Earnings Infographic
Q3 2022
Q3 2021
Revenue (in billions)
Y/Y Growth
2.4 %
11.8 %
Y/Y Growth CC1
5.6 %
11.0 %
GAAP Operating Margin
16.4 %
15.4 %
Adjusted Operating Margin1
16.4 %
15.8 %
GAAP Diluted EPS
Adjusted Diluted EPS1
Third Quarter 2022 Performance by Business Segment
Financial Services revenue declined 1.5% year-over-year, but grew 1.6% in constant currency. Growth was driven by digital services among public sector clients in the
Health Sciences revenue grew 3.8% year-over-year, or 5.5% in constant currency. Growth was driven by digital services among pharmaceutical and healthcare payer clients.
Products and Resources revenue grew 3.7% year-over-year, or 8.2% in constant currency, driven by digital services among logistics, automotive, consumer goods and travel and hospitality clients.
Communications, Media and Technology revenue grew 6.0% year-over-year, or 10.4% in constant currency, driven by strength among digital native companies.
Bookings
Bookings in the quarter declined 2% year-over-year and represented an in-period book-to-bill of approximately 1.0x. This resulted in trailing 12-month bookings of
Return of Capital to Shareholders
The Company repurchased 4.6 million shares for
'Strong free cash flow conversion and a healthy balance sheet have allowed us to return
Fourth Quarter and Full Year 2022 Outlook
The Company provided the following guidance:
Fourth quarter revenue is expected to be
Full-year 2022 revenue is expected to be approximately
Full-year 2022 Adjusted Operating Margin2 is expected to expand 20 basis points to 15.6%.2
Full-year 2022 Adjusted Diluted EPS2 is expected to be in the range of
Conference Call
Cognizant will host a conference call on
The conference call will also be available live on the Investor Relations section of the Cognizant website at http://investors.cognizant.com. An earnings supplement will also be available on the Cognizant website at the time of the conference call.
For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or +1 (201) 612-7415 (internationally) and enter 13732397 beginning two hours after the end of the call until
About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.
Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our expectations regarding the impact of the COVID-19 pandemic on our business, our strategy, competitive position and opportunities in the marketplace, investment in and growth of our business, the effectiveness of our recruiting and talent efforts and related costs, trends in demand for digital solutions and services, labor market trends, the anticipated amount of capital to be returned to shareholders and our anticipated financial performance. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, legal, reputational and financial risks resulting from cyberattacks, the impact of and effectiveness of business continuity plans during the COVID-19 pandemic, risks related to the invasion of
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