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View All NewsWorld – Cognizant revenue up 14.5% in fourth quarter
Cognizant Technology Solutions Corp. 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.
(USD 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
(USD 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
(USD 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
(USD 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 fourth-quarter revenue to be up between 9.0% and 10.0%, or between 10.2% to 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
Cognizant released earnings after close of market, but shares had closed up by 2.11% to USD 88.24; they were 4.12% below their 52-week high, according to FT.com. The company had a market cap of USD 45.39 billion.