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Compared to Estimates, Cognizant (CTSH) Q4 Earnings: A Look at Key Metrics

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For the quarter ended December 2024, Cognizant (CTSH - Free Report) reported revenue of $5.08 billion, up 6.8% over the same period last year. EPS came in at $1.21, compared to $1.18 in the year-ago quarter.

The reported revenue represents a surprise of +0.49% over the Zacks Consensus Estimate of $5.06 billion. With the consensus EPS estimate being $1.12, the EPS surprise was +8.04%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Cognizant performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Products and Resources: $1.30 billion versus $1.28 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
  • Revenue- Health Sciences: $1.54 billion versus the two-analyst average estimate of $1.50 billion. The reported number represents a year-over-year change of +10.4%.
  • Revenue- Financial services: $1.44 billion compared to the $1.49 billion average estimate based on two analysts. The reported number represents a change of +2.9% year over year.
  • Revenue- Communications, Media and Technology: $811 million versus $803.52 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.9% change.
View all Key Company Metrics for Cognizant here>>>

Shares of Cognizant have returned +10.5% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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