Cognizant Technology Solutions Corporation one of the world’s leading professional services companies, announced its third quarter 2018 financial results.
Revenue for the third quarter of 2018 rose to $4.08 billion, up 8.3% from $3.77 billion in the third quarter of 2017. GAAP operating margin was 18.3% and non-GAAP operating margin2 was 21.1% for the third quarter of 2018. Net income was $477 million, or $0.82 per diluted share, compared to $495 million, or $0.84 per diluted share, in the third quarter of 2017.
The decrease in net income was primarily due to higher net non-operating foreign exchange losses in 2018 driven by the depreciation of the Indian rupee versus the prior year period. Non-GAAP diluted EPS was $1.19, compared to $0.98 in the third quarter of 2017.
“Cognizant delivered strong third-quarter results in three of our four business segments,” said Francisco D’Souza, Chief Executive Officer and Vice Chairman of the Board. “We made continued progress in our shift to digital by building new capabilities and helping our clients excel with digital services and solutions. We’re speeding clients along their journey to create more engaging customer experiences, automate their processes, and modernize their technology foundations, a three-layer transformation we call digital at scale. Our performance this year demonstrates our ability to both invest for growth and achieve our financial targets.”
Fourth Quarter & Full Year 2018 Outlook
The Company is providing the following guidance:
- Fourth quarter 2018 revenue expected to be in the range of $4.09 billion to $4.13 billion.
- Fourth quarter 2018 non-GAAP diluted EPS3 expected to be at least $1.05.
- Full year 2018 revenue expected to be in the range of $16.09 billion to $16.13 billion.
- Full year 2018 non-GAAP diluted EPS expected to be at least $4.50.
“We delivered solid performance in the third quarter as we continued to focus on sustainable revenue growth while increasing margins,” said Karen McLoughlin, Chief Financial Officer. “The strength of our balance sheet allows the company to maintain financial flexibility while driving a substantial return of capital to shareholders.”
Return of Capital Program – Dividend
The Company has declared a quarterly cash dividend of $0.20 per share on Cognizant Class A common stock for shareholders of record at the close of business on November 20, 2018. This dividend will be payable on November 30, 2018.