The company said revenue for June 30, 2024 decreased $36 million from the prior-year quarter, a decline of 0.7% (0.5% on a constant currency basis). It said weakness in its Products and Resources and Financial Services segments was partially offset by growth in its Health Sciences and Communications, Media and Technology segments.

1. 01

   The company said revenue for June 30, 2024 decreased $36 million from the prior-year quarter, a decline of 0.7% (0.5% on a constant currency basis). It said weakness in its Products and Resources and Financial Services segments was partially offset by growth in its Health Sciences and Communications, Media and Technology segments.

2. 02

   The company said its operating margin for Q2 2024 rose to 14.6% and its Adjusted Operating Margin rose to 15.2%, compared with 11.8% and 14.2% a year earlier. It cited net savings from the NextGen program and the effect of exchange rate movements as the drivers, partially offset by the insurance recovery benefit of 60 basis points in Q2 2023.

3. 03

   The company said it recorded restructuring charges of $29 million related to the NextGen program in Q2 2024 ($117 million in the prior-year quarter), and that it has incurred total costs of $281 million since the program began. It said it expects to incur costs of about $95 million for fiscal 2024 and about $325 million in total for the program.

4. 04

   Cognizant said the decline in operating cash flow for the first half of 2024 was driven by a required payment of $360 million related to the ITD dispute in January 2024 and lower collections of receivables. The company also announced an agreement to acquire Belcan on June 10, 2024, with a preliminary purchase price of about $1.3 billion in cash and 1,470,589 shares.

Key figures

Quarter ended June 30, 2024

Revenue

$4.8B

Operating income

$708M

Net income

$566M

EPS

$1.14

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.