Cognizant Q3 revenue increases 12%; net income up 56%

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October 28, 2021

Third-quarter revenue rose 11.0% year over year on a constant currency basis at IT services giant Cognizant Technology Solutions Corp. (NASDAQ: CTSH). The increase was 11.8% on a reported basis. Net income rose 56.3%.

“While the industry faces an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and stayed focused on delivering against our client commitments and our strategic repositioning,” CEO Brian Humphries said.

(US$ millions) Q3 2021 Q3 2020 % change % constant currency
Revenue $4,744 $4,243 11.8% 11.0%
Net income $544 $348 56.3%  

The fastest growth took place in Cognizant’s “communications, media and technology” industry vertical amid recently completed acquisitions and strong demand from technology clients.

In “products and resources,” the second fastest-growing industry vertical, Cognizant noted improved demand from retail, consumer goods, travel and hospitality clients.

Revenue by industry vertical

(US$ millions) Q3 2021 % change % constant currency
Financial services $1,544 5.1% 4.3%
Healthcare $1,354 10.0% 9.8%
Products and resources $1,107 19.4% 18.1%
Communication, media and technology $739 20.0% 19.1%

Revenue by geography

(US$ millions) Q3 2021 % change % constant currency
North America $3,486 9.7% 9.5%
UK $430 24.6% 18.8%
Continental Europe $484 10.8% 9.6%
Rest of world $344 22.0% 21.0%

Guidance

Cognizant forecast fourth-quarter revenue to be up between 13.5% and 14.5%, or between 13.3% and 14.3% in constant currency.

Full-year revenue is expected to be up 11.1%, or 9.8% on a constant currency basis.

Share price and market cap

Shares in Cognizant were down 0.46% to $77.35 as of 12:43 p.m. Eastern time; they were 6.50% below their 52-week high, according to FT.com. The company had a market cap of $40.84 billion.

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