Cognizant (CTSH) Q3 Earnings: A Comparison with Wall Street Estimates

In the quarter ending September 2024, Cognizant (CTSH) reported a revenue of $5.04 billion, marking a 3% increase from the same period last year. The company's earnings per share (EPS) stood at $1.25, which is an improvement from $1.16 reported in the year-ago quarter.

This revenue figure exceeded the Zacks Consensus Estimate of $5 billion by 0.82%. Additionally, the consensus EPS estimate was $1.14, leading to a notable EPS surprise of 9.65%.

While investors often focus on year-over-year changes in revenue and earnings, as well as comparisons with Wall Street forecasts, certain key metrics provide deeper insights into a company's performance.

These metrics significantly impact both top-line revenue and bottom-line earnings, making comparative analyses crucial for projecting future stock performance.

Here’s a breakdown of Cognizant’s performance in key metrics for the recently concluded quarter:

• Financial Services Revenue: $1.49 billion, aligning with the average estimate of $1.49 billion from two analysts. This figure shows a year-over-year increase of 0.8%.
• Communications, Media, and Technology Revenue: $816 million, which is below the average estimate of $843 million from two analysts. This reflects a year-over-year decrease of 3.7%.
• Products and Resources Revenue: $1.23 billion, surpassing the average estimate of $1.21 billion from two analysts. This represents a year-over-year growth of 5%.
• Health Sciences Revenue: $1.51 billion, exceeding the estimated $1.46 billion from two analysts, indicating a year-over-year increase of 7.8%.

Investors should check all of Cognizant's key metrics to gain a comprehensive view of its financial performance.

Over the past month, Cognizant’s shares have experienced a 0.8% decline, while the Zacks S&P 500 composite saw an increase of 1.8%. The stock currently holds a Zacks Rank of #3 (Hold), suggesting it may perform in line with the broader market in the short term.

Cognizant, Earnings, Revenue