Cognizant Technology Solutions Corporation
- Cognizant Technology Solutions Corp dropped 1.9% to $82.01 after the IT consulting and outsourcing company reported lower-than-expected profit in the fourth quarter ending in December.
Revenue increased to $5.08 billion from $4.76 billion, net income declined to $546 million from $558 million, and earnings per diluted share fell to $1.10 from $1.11 a year ago.
Order bookings in the fourth quarter increased 11% from a year ago.
The company’s health sciences segment surged 10.4% to $1.54 billion, products and resources was up 11.3% to $1.29 billion, financial services jumped 2.8% to $1.43 billion, and communications, media, and technology was up 0.4% to $811 million.
Sales in North America jumped 3.1%, while U.K. sales were down 5.1%.
For the current quarter, the company estimated revenue growth of 6.5% to 8% in the range of $5.0 billion to $5.1 billion in constant currency.
Full-year 2025 revenue is expected to increase by 3.5% to 6% from $20.3 billion to $20.8 billion, and earnings per share are expected to be between $4.90 and $5.06.
Cognizant repurchased 1.8 million shares for $140 million during the fourth quarter, and as of December 31, there was $1.2 billion remaining under its share repurchase authorization.
The company proposed a quarterly cash dividend increase of 3% to 31 cents per share, payable on February 26 to shareholders of record on February 18.
Feb 6, 2025
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