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CTSH Nasdaq· Cognizant Technology Solutions Corp
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CTSH Nasdaq· Cognizant Technology Solutions Corp
Earnings report Q4 2023

CTSH Reports Slight Decline in Revenues for the Latest Quarter

Segments of revenue

In the latest quarter, CTSH reported total revenues of $19.35 billion, representing a decline of $75 million or 0.4% compared to the same period last year. The company's business segments showed mixed performance. The Financial Services segment experienced a decrease of $263 million or 4.3%, primarily due to reduced demand for discretionary work. On the other hand, the Health Sciences segment saw an increase of $43 million or 0.8%, while the Products and Resources segment grew by $62 million or 1.4%. The Communications, Media, and Technology (CMT) segment also showed growth, with an increase of $83 million or 2.6%.

Strengths

Despite the overall decline in revenues, CTSH demonstrated resilience in certain segments. The Health Sciences, Products and Resources, and CMT segments all experienced growth, indicating the company's ability to adapt to changing market demands. Additionally, CTSH highlighted that its recently completed acquisitions contributed 110 basis points of growth to the change in revenues, demonstrating successful integration and expansion strategies.

Challenges

CTSH faced challenges in the Financial Services segment, which experienced a significant decline in revenues. The reduced demand for discretionary work negatively impacted this segment, highlighting the company's vulnerability to market fluctuations and client spending patterns. The North America region also saw a decline in revenues, primarily driven by the performance of the Financial Services segment.

Noteworthy

CTSH maintained its commitment to shareholder value through regular dividend payments. In 2023, the company paid quarterly cash dividends of $0.29 per share, totaling $1.16 per share for the year. The Board of Directors approved a cash dividend of $0.30 per share for the upcoming quarter, indicating confidence in the company's financial position and future prospects.

Summary

CTSH reported a slight decline in revenues for the latest quarter, primarily driven by reduced demand in the Financial Services segment. However, the company showcased strengths in other segments, such as Health Sciences, Products and Resources, and CMT, which experienced growth. CTSH's successful integration of recent acquisitions contributed to overall revenue growth. Challenges remain in the Financial Services segment and the North America region. The company's commitment to shareholder value was evident through regular dividend payments. Overall, CTSH demonstrated resilience and adaptability in navigating market challenges.

Source documents

Form 10-K  filed on Feb 14, 2024
103 pages scanned

Reference data

Company financials Q4 revenue 4.76B
Analyst estimates Q4 EPS beat by 13.94%
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