Cognizant said its full-year 2023 revenue declined $75 million, or 0.4%, from the prior year, and fell 0.3% on a constant currency basis. The company cited weakness in the banking sector as the reason for the revenue decline in its Financial Services segment.

1. 01

   Cognizant said its full-year 2023 revenue declined $75 million, or 0.4%, from the prior year, and fell 0.3% on a constant currency basis. The company cited weakness in the banking sector as the reason for the revenue decline in its Financial Services segment.

2. 02

   Cognizant said its operating margin for 2023 was 13.9% and its Adjusted Operating Margin was 15.1%, compared with 15.3% for both measures in 2022. The company cited higher compensation costs as a factor in the margin decline and said its operating margin was also affected by NextGen costs.

3. 03

   Cognizant said it incurred employee separation costs of $115 million and facility exit and other costs of $114 million related to the NextGen program in 2023, for a total of $229 million. The company said it expects total costs of about $300 million, with about $70 million of those costs anticipated in 2024.

4. 04

   Cognizant said it had cash, cash equivalents and short-term investments of $2,635 million as of December 31, 2023, and available capacity under its credit facilities of about $2.0 billion. The company said it deposited 30 billion Indian rupees ($355 million) in January 2024 in connection with an Indian tax dispute.

Key figures

Fiscal year ended December 31, 2023

Revenue

$19.4B

Operating income

$2.7B

Net income

$2.1B

EPS

$4.21

Operating cash flow

$2.3B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.