Cognizant Reports 3.0% Revenue Growth and 10.9% Net Income Increase in Q3 2024

Cognizant Technology Solutions Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, demonstrating notable growth in revenue and profitability compared to the previous fiscal period.

For the third quarter of 2024, Cognizant achieved revenues of $5,044 million, reflecting an increase of $147 million or 3.0% from $4,897 million in Q3 2023. The company's net income for the quarter rose to $582 million, up from $525 million in the same period last year, marking a 10.9% increase. Adjusted diluted earnings per share (EPS) also improved, reaching $1.25 compared to $1.16 in Q3 2023, which represents a 7.8% increase. Additionally, income from operations increased by 7.6%, amounting to $738 million, up from $686 million in the prior year.

For the nine months ending September 30, 2024, total revenues were reported at $14,654 million, a modest increase of $59 million or 0.4% from $14,595 million in the same period of 2023. Net income for this period was $1,694 million, an increase from $1,568 million in the previous year, reflecting an 8.0% growth. Adjusted diluted EPS for the nine months was $3.55, compared to $3.37 in the same period of 2023, indicating a 5.3% increase.

As of September 30, 2024, Cognizant's total assets increased to $20,164 million, up from $18,483 million at the end of 2023. Retained earnings also saw growth, rising to $14,347 million from $13,301 million at the end of the previous year. However, cash and cash equivalents decreased to $2,013 million, down from $2,621 million at the end of 2023.

During the third quarter, Cognizant incurred $33 million in restructuring charges related to its NextGen program, bringing the total costs associated with this initiative to $314 million since its inception. This strategic move is part of the company's ongoing efforts to enhance operational efficiency and adapt to market demands.