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Cognizant Q4 revenue up 14.5%, all regions post gains

February 03, 2022

Cognizant Technology Solutions Corp. (NASDAQ: CTSH) reported fourth-quarter revenue rose 14.5% year over year in constant currency. Revenue at the IT services firm rose across all geographies with the fastest growth in continental Europe.

“During 2021, we continued to invest in our people and strategic initiatives while navigating the heightened cost pressures driven by the labor supply-demand imbalance,” CFO Jan Siegmund said.

(US$ millions)	Q4 2021	Q4 2020	% change	% constant currency
Revenue	$4,777	$4,184	14.2%	14.5%
Net income	$576	$316	82.3%

Net income at Cognizant increased 82.3% in the fourth quarter; however, the firm noted the fourth quarter of 2020 included $38 million in restructuring charges.

Revenue by industry vertical

(US$ millions)	Q4 2021	% change	% constant currency
Financial services	$1,547	18.5%	18.8%
Healthcare	$1,370	7.9%	8.2%
Products and resources	$1,116	17.7%	18.0%
Communication, media and technology	$744	12.6%	13.1%

Revenue by geography

(US$ millions)	Q4 2021	% change	% constant currency
North America	$3,495	9.0%	9.0%
UK	$439	29.5%	28.4%
Continental Europe	$497	38.1%	42.2%
Rest of world	$346	24.0%	25.7%

Full-year results

(US$ millions)	FY 2021	FY 2020	% change	% constant currency
Revenue	$18,507	$16,652	11.1%	10.0%
Net income	$2,137	$1,392	53.5%

Full-year 2020 included $215 million in restructuring charges.

Guidance

Cognizant forecast first-quarter revenue to be up between 9.0% and 10.0%, or between 10.2% and 11.2% in constant currency.

Full-year 2022 revenue is expected to be up 7.8% to 10.8%, or between 8.5% and 11.5% in constant currency.

Share price and market cap

Shares in Cognizant were down 1.80% to $86.66 as of 11:04 a.m. Eastern time; they were 5.84% below their 52-week high, according to FT.com. The company had a market cap of $ 46.35 billion.