Revenues rise 17.9% YoY in 4Q15
On February 8, 2016, Cognizant (CTSH) declared its 4Q15 results and reported revenues of $3.2 billion, an increase of 17.9% YoY (year-over-year) and 1.4% quarter-over-quarter. GAAP (generally accepted accounting principles) EPS (earnings per share) in 4Q15 was $0.69 compared to $0.59 in 4Q14. Non-GAAP EPS was $0.80 in 4Q15 and $0.80 in 4Q14.
GAAP net income was $423.4 million in 4Q15 compared to $362.9 million in 4Q14. GAAP operating margin was 17.1%, whereas the non-GAAP operating margin was 19.6% for 4Q15.
CEO is pleased with strong performance in 2015
“We are pleased with our strong performance in 2015,” said Francisco D’Souza, Cognizant’s CEO. “At a time when major technology shifts are disrupting all industries, clients are looking to a partner like Cognizant to work with them to create the winning business models of tomorrow at the intersection of the physical and digital worlds. Our investments in disruptive technologies, new business models and best-in-class delivery uniquely position us to enable clients to drive digital transformation at enterprise scale.”
While Cognizant beat analyst EPS estimates of $0.78, revenues fell short of estimates by $10 million in 4Q15.
Cognizant is a leading provider of information technology, consulting, and business process outsourcing services. Cognizant has a market cap of $32.3 billion. Its peer companies include IBM (IBM), Accenture (ACN), and India’s (INDA) Infosys (INFY), which have market caps of $124 billion, $60.3 billion, and $36.9 billion, respectively.
In the next article of the series, we will look at why share prices of Cognizant fell by 7% after its 4Q15 results.