Cognizant Technology Solutions Corp. Q4 FY2023 results: revenue $4.8 billion, down 1.7% on the year

Cognizant Technology Solutions Corp. (CTSH) reported revenue of $4.8 billion for Q4 FY2023, the quarter ended 31 December 2023, down 1.7% on the same quarter a year earlier. Net income was $558 million, up 7.1% on the year, and diluted earnings per share $1.12. The figures are the company's own, from the 10-K it filed with the SEC on 14 February 2024.

Revenue$4.8 billiondown 1.7%

Net income$558 millionup 7.1%

Diluted EPS$1.12

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	4,758	4,897	n/a	n/a
Selling, general and administrative	786	801	n/a	n/a
Operating income	724	686	n/a	n/a
Operating margin	15.2%	14.0%	n/a
Interest expense	11.0	11.0	n/a	n/a
Pre-tax income	749	713	n/a	n/a
Income tax	195	191	n/a	n/a
Effective tax rate	26.0%	26.8%	n/a
Net income	558	525	n/a	n/a
Net margin	11.7%	10.7%	n/a
Diluted EPS	$1.12	$1.04	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free 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 and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	737	828	n/a	n/a
Capital expenditure	78.0	73.0	n/a	n/a
Free cash flow	659	755	n/a	n/a
Free cash flow margin	13.9%	15.4%	n/a
Depreciation and amortisation	136	129	n/a	n/a
Share-based compensation	43.0	47.0	n/a	n/a
Buybacks	313	315	n/a	n/a
Dividends paid	146	147	n/a	n/a
Dividend per share	n/a	$0.29	n/a	n/a
Diluted shares, weighted	505m	505m	n/a	n/a
Shares outstanding at period end	498m	501m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	18,483	18,079	n/a	n/a
Cash and equivalents	2,621	2,204	n/a	n/a
Receivables	3,849	3,807	n/a	n/a
Goodwill	6,085	6,013	n/a	n/a
Long-term debt	606	614	n/a	n/a
Operating lease liabilities	523	634	n/a	n/a
Finance lease liabilities	16.0	n/a	n/a	n/a
Shareholders' equity	13,227	12,882	n/a	n/a

Quarterly results, the last 12 quarters

	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026
Revenue	4,886	4,897	4,758	4,760	4,850	5,044	5,082	5,115	5,245	5,415	5,333	5,413
SG&A	830	801	786	765	781	833	844	791	810	833	806	791
Operating income	577	686	724	695	708	738	751	853	817	866	853	843
Operating margin	12%	14%	15%	15%	15%	15%	15%	17%	16%	16%	16%	16%
Interest expense	10.0	11.0	11.0	11.0	10.0	14.0	19.0	12.0	9.0	8.0	8.0	7.0
Pre-tax income	587	713	749	722	728	748	740	872	842	887	878	867
Tax rate	21%	27%	26%	25%	23%	23%	27%	24%	23%	69%	27%	24%
Net income	463	525	558	546	566	582	546	663	645	274	648	662
Net margin	9%	11%	12%	11%	12%	12%	11%	13%	12%	5%	12%	12%
Diluted EPS	$0.91	$1.04	$1.12	$1.10	$1.14	$1.17	$1.10	$1.34	$1.31	$0.56	$1.35	$1.39
Operating cash flow	36.0	828	737	95.0	262	847	920	400	398	1,227	858	274
Capital expenditure	68.0	73.0	78.0	79.0	79.0	56.0	83.0	77.0	67.0	67.0	77.0	76.0
Free cash flow	-32.0	755	659	16.0	183	791	837	323	331	1,160	781	198
Buybacks	214	315	313	133	76.0	242	154	209	368	463	338	444
Dividends paid	148	147	146	151	150	149	150	155	153	151	151	159
Shares outstanding	505m	501m	498m	497m	497m	496m	495m	493m	489m	483m	479m	474m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 14 February 2024, accession 0001058290-24-000017: the filing on EDGAR. All of Cognizant Technology Solutions Corp.'s filings: EDGAR company page.

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