Cognizant (Nasdaq: CTSH), one of the world’s leading professional services companies, today announced its second quarter 2022 financial results.
“In a period of unprecedented labor market conditions characterized by elevated attrition and significant wage inflation, we focused on our client commitments and delivered balanced financial results in the second quarter,” said Brian Humphries, Chief Executive Officer. “As we position the company for sustained success, we will continue to invest in our talented employees, our clients and our capabilities.”
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Q2 2022 |
Q2 2021 |
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Revenue (in billions) |
$4.9 |
$4.6 |
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Y/Y Growth |
7.0Â % |
14.6Â % |
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Y/Y Growth CC1 |
9.5Â % |
12.0Â % |
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GAAP and Adjusted Operating Margin1 |
15.5Â % |
15.2Â % |
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GAAP Diluted EPS |
$1.11 |
$0.97 |
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Adjusted Diluted EPS1 |
$1.14 |
$0.99 |
Second Quarter 2022 Performance by Business Segment
Financial Services revenue grew 2.7% year-over-year, or 5.1% in constant currency, driven by growth in U.S. regional banking clients, strength in the United Kingdom and solid performance within insurance. The sale of the Samlink subsidiary, which closed on February 1, 2022, negatively impacted segment revenue growth by approximately 190 basis points.
Health Sciences2Â revenue grew 6.3% year-over-year, or 7.6% in constant currency. Growth was driven by digital services among pharmaceutical clients and sustained demand for integrated software solutions among our healthcare clients.
Products and Resources revenue grew 8.1% year-over-year, or 11.6% in constant currency, driven in part by strength among automotive, logistics, retail and consumer goods clients. Segment growth includes the benefit of acquisitions closed in Q2 2021.
Communications, Media and Technology revenue grew 16.1% year-over-year, or 19.5% in constant currency, driven by strength among digital native companies.
Bookings
Q2 bookings declined 3% year-over-year. This resulted in trailing 12-month bookings of $23.2Â billion, which represented a book-to-bill of approximately 1.2x.
Return of Capital to Shareholders
The Company repurchased 4.2 million shares for $300 million during the second quarter and 9.2 million shares for $744 million year-to-date under its share repurchase program. As of June 30, 2022, there was $1.4 billion remaining under the share repurchase authorization. On July 26, 2022, the Company declared a quarterly cash dividend of $0.27 per share for shareholders of record on August 19, 2022. This dividend is payable on August 30, 2022.
“During the quarter, we maintained a disciplined approach on pricing, while managing supply constraints and labor cost inflationary pressure. While quarterly bookings performance was below our expectations, our 1.2x book-to-bill supports our revenue growth outlook for 2022,” said Jan Siegmund, Chief Financial Officer. “We now expect to return approximately $1.8 billion to shareholders through share repurchases and dividends for the full year, which reflects the strength of our balance sheet and our near-term acquisition outlook.”