Cognizant (CTSH) Q3 Earnings Up Y/Y, Revenues Miss Estimates
Cognizant Technology Solutions CTSH reported third-quarter 2022 non-GAAP earnings of $1.17 per share, which matched the Zacks Consensus Estimate and improved 10.4% year over year.
Revenues of $4.9 billion missed the consensus mark by 2.94%. However, the top line increased 2.4% year over year. At constant currency (cc), revenues grew 5.6%. The reported figure was within managements revenue guidance of $4.90 billion to $4.94 billion.
The growth in the top line was led by digital revenues, which accounted for 51% of revenues and increased 7% year over year. However, the digital revenue growth slowed down due to FX headwinds, lower inorganic contribution and elevated attrition, particularly in Europe.
Top-Line Details
Financial services revenues (31.3% of revenues) increased 1.6% year over year at cc to $1.52 billion, led by growth in the insurance business. However, clients' focus on cost optimization and the sale of the Samlink subsidiary affected the segments revenue growth by 180 basis points (bps).
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