Cognizant Technology Solutions Readies for Q3 2024 Earnings Report
Cognizant Technology Solutions (CTSH) will announce its third-quarter 2024 results on October 30.
The Zacks Consensus Estimate anticipates earnings of $1.15 per share. This figure has remained the same over the past month and reflects a drop of 0.86% compared to the same quarter last year.
Stay informed about all quarterly financial releases: See Zacks Earnings Calendar.
For the third quarter, Cognizant expects revenues between $4.89 billion and $4.96 billion. This range suggests a slight drop of 0.2% to a gain of 1.3% from last year, with a 1.5% increase on a constant currency basis. Additionally, acquisitions are estimated to have contributed 70 basis points to this quarter’s revenue.
Cognizant Technology Solutions Corporation Price and EPS Surprise
Cognizant Technology Solutions Corporation price-eps-surprise | Cognizant Technology Solutions Corporation Quote
The Zacks Consensus Estimate for third-quarter revenues stands at $5 billion, indicating a year-over-year increase of 2.17%.
Cognizant has consistently surpassed earnings estimates over the last four quarters, with an average surprise of 6.56%.
Let’s explore what factors may influence this upcoming announcement.
Key Considerations for Q3 2024
Cognizant’s performance in the upcoming quarter is likely to be bolstered by its growing customer base and a strong pipeline of new opportunities.
In Q2 2024, Cognizant secured five agreements, each valued at $100 million or more, indicating a high demand for significant contracts. This achievement may positively impact results for Q3.
The company’s extensive network of partnerships, which includes Gentherm (THRM), Microsoft (MSFT), and CNO Financial Group (CNO), likely contributed to its growth during the quarter.
Cognizant recently teamed up with Gentherm to offer engineering services, targeting improved agility and scalability in product development through cloud-native technologies. The benefits from this collaboration are expected to be reflected in Q3 results.
Additionally, Cognizant has expanded its partnership with Microsoft, focusing on leveraging generative AI and Copilots to foster innovation across various sectors. This partnership seeks to enhance enterprise operations and employee experiences.
The continuation of the partnership with CNO Financial, which provides insurance and financial services to middle-income Americans, highlights Cognizant’s role in optimizing technology-based services using cloud solutions.
Investment in generative AI, alongside collaborations with Microsoft and NVIDIA, positions Cognizant favorably in the market. Enhanced AI capabilities are likely to boost service offerings and support future growth.
Furthermore, the NextGen initiative is expected to improve operational efficiency in Q3.
However, Cognizant may face challenges stemming from weaknesses in its Financial Services segment and adverse foreign exchange rates, both of which could hinder spending and top-line growth for the quarter.
Cognizant currently holds a Zacks Rank #3 (Hold). You can view the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
