Summary
Cognizant Technology Solutions Corporation reported strong financial performance for the nine months ended September 30, 2012. Total revenues increased significantly by 21.1% year-over-year to $5.4 billion. Net income also saw a robust increase of 20.0% to $772.5 million, resulting in diluted earnings per share of $2.52. The company experienced growth across all its business segments, with Financial Services and Healthcare showing particularly strong revenue increases. Significant investments were made in expanding development centers in India, with over $700 million planned. The company maintained a healthy liquidity position with $2.6 billion in cash, cash equivalents, and short-term investments.
Financial Highlights
45 data pointsBeta
Financial Statements
Beta
| Revenue | $1.89B |
| SG&A Expenses | $384.95M |
| Operating Income | $355.39M |
| Net Income | $276.90M |
| EPS (Basic) | $0.47 |
| EPS (Diluted) | $0.46 |
| Shares Outstanding (Basic) | 598.12M |
| Shares Outstanding (Diluted) | 606.26M |
Key Highlights
- 1Revenue grew 21.1% to $5.398 billion for the nine months ended September 30, 2012.
- 2Net income increased 20.0% to $772.5 million for the nine months ended September 30, 2012.
- 3Diluted EPS rose to $2.52 for the nine months ended September 30, 2012.
- 4Strong performance across all business segments, with Financial Services and Manufacturing/Retail/Logistics showing significant revenue growth.
- 5The company repurchased $483.9 million of common stock in the first nine months of 2012.
- 6Operating margin remained strong at 18.6% for the nine months ended September 30, 2012, with a non-GAAP margin of 20.1% excluding stock-based compensation.
- 7Company is investing over $700 million in its India development center expansion program.
Frequently Asked Questions
For the nine months ended September 30, 2012, Cognizant reported a 21.1% increase in revenue, reaching $5.398 billion, compared to $4.457 billion in the same period of 2011. For the third quarter of 2012, revenue increased 18.2% to $1.892 billion compared to the prior year's quarter.
Net income for the nine months ended September 30, 2012, rose by 20.0% to $772.5 million, translating to diluted earnings per share of $2.52, up from $2.07 in the same period of 2011. The operating margin for the nine months was 18.6%.
As of September 30, 2012, Cognizant had $2.63 billion in cash, cash equivalents, and short-term investments, with working capital of $3.27 billion. The company has no third-party debt and reported strong net cash provided by operating activities of $810.7 million for the nine months ended September 30, 2012.
Revenue growth was driven by strong performance across all business segments, increased customer spending on discretionary development projects, expansion of service offerings, increased penetration at existing customers, and the growing market for global IT services and business process outsourcing. Specific segment growth was noted in Financial Services and Manufacturing/Retail/Logistics.