Cognizant Technology Solutions Corporation CTSH, +0.28% today announced its second quarter 2015 financial results.
Highlights—Second Quarter 2015
- Second quarter revenue of $3.09 billion was up 22.6% from the year-ago period and up 6.0% sequentially.
- GAAP diluted EPS was $0.68, up from $0.61 in the year-ago period.
- Non-GAAP diluted EPS was $0.79, up from $0.66 in the year-ago period.
Revenue for the second quarter of 2015 rose to $3.09 billion, up 22.6% from $2.52 billion in the second quarter of 2014. GAAP net income was $420.1 million, or $0.68 per diluted share, compared to $371.9 million, or $0.61 per diluted share, in the second quarter of 2014. Non-GAAP diluted earnings per share was $0.79 compared to $0.66 in the second quarter of 2014. GAAP operating margin for the quarter was 17.7%. Non-GAAP operating margin was 20.2%, slightly higher than the Company’s target range of 19-20%. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.
“Our second quarter sequential revenue increase in dollar terms was the strongest in our history,” said Francisco D’Souza, Chief Executive Officer of Cognizant. “These results validate that our business strategy and our investments position us well to capture the emerging opportunities as clients look to transform into digital businesses. We increasingly work with our clients to help them re-imagine their businesses and build new capabilities to succeed in the digital era.”
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
“We are pleased that the significant investments we have made in our workforce over the past year are enabling us to meet the strong demand from our clients to support their innovation initiatives,” said Gordon Coburn, President. “We continue to optimize our existing services and aggressively invest in new services to enable clients to drive higher levels of operational efficiency. These new solutions, being developed and deployed across all of our major business units, are fundamentally changing business models and economics for clients around the world.”
2 015 Outlook—Third Quarter and Full Year
The Company is providing the following guidance:
- Third quarter 2015 revenue expected to be at least $3.14 billion.
- Third quarter 2015 non-GAAP diluted EPS expected to be at least $0.75.
- Fiscal 2015 revenue expected to be at least $12.33 billion, up at least 20.1% compared to 2014.
- Fiscal 2015 non-GAAP diluted EPS expected to be at least $3.00.
“Our strong performance has allowed us to raise our full year revenue and EPS guidance for the second time this year, despite the impact to our full year revenues from the announcement that Health Net would be acquired by Centene Corporation,” said Karen McLoughlin, Chief Financial Officer. “During the quarter, we repurchased $153 million of shares, under our existing stock repurchase program, reflecting our strong cash flows and our confidence in the strength of our business.”
Conference Call
Cognizant will host a conference call on August 5, 2015 at 8:00 a.m. (Eastern) to discuss the Company’s second quarter 2015 results. To listen to the conference call, please dial (877) 810-9510 (domestic) and (201) 493-6778 (international) and provide conference passcode: Cognizant Call.
The conference call will also be webcast via the Cognizant website athttp://investors.cognizant.com/. Please access the website at least 15 minutes prior to the call to register and download/install any necessary audio software.
A replay of the conference call will be available by dialing (877) 660-6853 (domestic) or (201) 612-7415 (international) and entering 13614116 from two hours after the end of the call until 11:59 p.m. (Eastern) on Wednesday, August 19, 2015. The replay will also be available at Cognizant’s website http://investors.cognizant.com/ for 60 days following the call.
Date: August 5, 2015