CTSH Earnings Prediction
The chart below shows how CTSH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CTSH sees a +0.33% change in stock price 10 days leading up to the earnings, and a +1.71% change 10 days following the report. On the earnings day itself, the stock moves by +0.52%. This data can give you a slight idea of what to expect for the next quarter's release.
CTSH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.08B
6.81%
0.75%
Gross Margin
32.35%
-0.71%
1.73%
Operating Margin
15.74%
-1.99%
2.94%
Net Margin
10.74%
-8.44%
-6.93%
EPS
1.10
-0.90%
-5.98%
No Data Available
CTSH Earnings Analysis
Cognizant Technology Solutions Corp Corporation (CTSH.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Cognizant reported Q4 2024 EPS of $1.21, exceeding expectations of $1.12, reflecting strong financial performance.
Q4 Revenue Performance: Q4 revenue reached $5.1 billion, marking a 6.7% year-over-year growth in constant currency, driven by strong performance in Health Sciences and Financial Services.
Large Deal Growth: The company signed 10 large deals in Q4, up from 7 a year ago, contributing to a total of 29 large deals for 2024, indicating robust demand across service lines.
Operating Margin Improvement: Adjusted operating margin improved sequentially to 15.7% in Q4, exceeding expectations and reflecting the successful completion of the NextGen program.
Strong Cash Generation: Free cash flow for Q4 was $837 million, contributing to a full-year total of $1.8 billion, representing 82% of net income, demonstrating strong cash generation capabilities.
Negative
Revenue Growth Slowdown: Revenue growth for the full year 2024 was only 1.9% year-over-year in constant currency, indicating a significant slowdown compared to previous years.
Operating Margin Analysis: The adjusted operating margin for the full year was 15.3%, which is only a 20 basis points increase year-over-year, reflecting limited operational efficiency improvements despite significant investments.
Cash Flow Impact Analysis: Fourth quarter free cash flow was impacted by a $360 million payment to Indian tax authorities, highlighting ongoing financial liabilities that affect cash reserves.
Revenue Decline Forecast: The first quarter of 2025 is expected to see a sequential revenue decline of up to 0.5%, indicating potential challenges in maintaining growth momentum into the new year.
Limited Earnings Growth Outlook: The guidance for full year 2025 earnings per share growth is only 3% to 7%, which includes a headwind from unfavorable foreign currency exchange rates, suggesting limited growth potential.
CTSH FAQs
How does CTSH typically perform around its earnings report dates?
Is Cognizant Technology Solutions Corp (CTSH) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CTSH Earning Call Sentiment
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Q4 2024 Earnings Call Transcript
CTSH.O
-0.07%Positive
The earnings call highlights strong financial performance with a 6.7% YoY revenue increase and improved margins. Positive developments include a $1 billion AI investment and significant large deals, alongside optimistic guidance. The shareholder return plan is robust, with substantial share repurchases and dividends. However, currency exchange risks and unclear management responses on growth assumptions are concerns. Overall, the sentiment leans positive due to strong earnings, optimistic guidance, and strategic investments, which are likely to drive a 2% to 8% stock price increase.
