Cognizant Technology Solutions (CTSH) FY2019 results: revenue $16.8 billion, up 4.1% on the year
Cognizant Technology Solutions Corp. (CTSH) reported revenue of $16.8 billion for fiscal 2019, the year ended 31 December 2019, up 4.1% on the year before. Net income was $1.8 billion, down 12.3%, and diluted earnings per share $3.29. The figures are the company's own, from the 10-K it filed with the SEC on 14 February 2020.
Revenue
$16.8 billion
+4.1% on the year
FY2012FY2019
Operating margin
14.6%
17.4% a year earlier
FY2012FY2019
Net income
$1.8 billion
-12.3% on the year
FY2012FY2019
Diluted EPS
$3.29
-8.6% on the year
FY2012FY2019
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Revenue
16,783
16,125
14,810
+4.1%
Cost of revenue
10,634
9,838
9,152
+8.1%
Gross profit
6,149
6,287
5,658
-2.2%
Gross margin
36.6%
39.0%
38.2%
Selling, general and administrative
2,972
3,007
2,697
-1.2%
Operating income
2,453
2,801
2,481
-12.4%
Operating margin
14.6%
17.4%
16.8%
Interest expense
26.0
27.0
23.0
-3.7%
Pre-tax income
2,543
2,797
2,655
-9.1%
Income tax
643
698
1,153
-7.9%
Effective tax rate
25.3%
25.0%
43.4%
Net income
1,842
2,101
1,504
-12.3%
Net margin
11.0%
13.0%
10.2%
Diluted EPS
$3.29
$3.60
$2.53
-8.6%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Operating cash flow
2,499
2,592
2,407
-3.6%
Capital expenditure
392
377
284
+4.0%
Free cash flow
2,107
2,215
2,123
-4.9%
Free cash flow margin
12.6%
13.7%
14.3%
Cash from investing
1,588
-1,627
-582
Cash from financing
-2,569
-1,693
-1,985
Depreciation and amortisation
526
498
443
+5.6%
Share-based compensation
217
267
221
-18.7%
Buybacks
2,247
1,261
1,889
+78.2%
Dividends paid
453
468
265
-3.2%
Dividend per share
$0.80
n/a
$0.45
Diluted shares, weighted
560m
584m
595m
-4.1%
Shares outstanding at period end
548m
577m
588m
-5.0%
Balance sheet
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Shareholders' equity
11,022
11,424
10,669
-3.5%
Debt
738
750
873
-1.6%
Operating lease liabilities
745
n/a
n/a
Finance lease liabilities
15.0
n/a
n/a
Other liabilities
3,684
3,672
3,679
+0.3%
Total liabilities and equity
16,204
15,846
15,221
+2.3%
Fixed assets
1,309
1,394
1,324
-6.1%
Goodwill
3,979
3,481
2,704
+14.3%
Intangible assets
1,041
1,150
981
-9.5%
Investments
796
3,430
3,366
-76.8%
Cash and equivalents
2,645
1,161
1,925
+127.8%
Receivables
3,256
3,190
2,865
+2.1%
Other assets
3,178
2,040
2,056
+55.8%
Total assets
16,204
15,846
15,221
+2.3%
10-K for the year ended 31 December 2019, filed 14 February 2020: the filing.