Cognizant Q4 and full-year results out today, read to know more

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Cognizant, one of the world’s leading professional services companies, today announced its fourth-quarter and full-year 2020 financial results. The adjusted margin for the fourth quarter narrowed down to 12.3% compared with 17% in the same quarter of the previous year. Cognizant Technology Solutions Corp. on Thursday posted revenue of $4.2 billion, down 3% YoY for the Q4 ended December.

The company follows the calendar year.

Its fourth-quarter result stood at $4.2 billion and full-year revenue at $16.7 billion. The revenues included the impact of the anticipated exit from a customer engagement and the exit from certain content services. The full-year operating cash flow stood at $3.3 billion and free cash flow1 at $2.9 billion. The revenue growth guidance of 2021 rose from 5.5% to 8.5% or 4.0% to 7.0% in constant currency (CC)1 and the quarterly dividend increased to $0.24 per share.

“We accomplished a great deal in the past year whilst keeping our clients and our talented associates foremost in mind,” said Brian Humphries, CEO, Cognizant. “Having strengthened our portfolio, and anticipating the exit of a large financial services engagement, we enter 2021 reinvigorated by our growing commercial momentum, investments in our future, and our vision to become the preeminent technology services partner to clients globally,” he added.

In December 2020, as part of its ongoing balanced capital allocation strategy, the Company increased its share repurchase authorization by $2 billion. In February 2021, the Company declared a quarterly cash dividend of $0.24 per share, a 9% increase, for shareholders of record on February 18, 2021. This dividend will be payable on February 26, 2021.

In a press release by Cognizant, it declared:

  • Financial Services (31.2% of revenues) revenue decreased 11.1% YoY, or 11.4% in constant currency, driven by declines in both banking and insurance.
  • Healthcare (30.3% of revenues) revenue grew 4.0% YoY, or 3.3% in constant currency, driven by growth in both healthcare and life sciences.
  • Products and Resources (22.7% of revenues) revenue decreased by 1.6% YoY or 2.4% in constant currency.
  • Communications, Media and Technology (15.8% of revenues) revenue increased 4.6% YoY or 3.4% in constant currency.
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