Cognizant Technology Solutions Corporation announced its fourth quarter and full year 2015 financial results.
Highlights – Fourth Quarter 2015
- Quarterly revenue rose to $3.23 billion, up 17.9% from the year-ago quarter and 1.4% sequentially.
- Quarterly diluted EPS on a GAAP basis was $0.69, compared to $0.59 in the year-ago quarter.
- Quarterly diluted EPS on a non-GAAP basis was $0.80, compared to $0.67 in the year-ago quarter.
- Net headcount addition for the quarter was approximately 2,400 and year-end headcount was approximately 221,700.
Revenue for the fourth quarter of 2015 rose to $3.23 billion, up 17.9% from $2.74 billion in the fourth quarter of 2014. GAAP net income was $423.4 million, or $0.69 per diluted share, compared to $362.9 million, or $0.59 per diluted share, in the fourth quarter of 2014. Diluted EPS on a non-GAAP basis was $0.80, compared to $0.67 in the fourth quarter of 2014. GAAP operating margin was 17.1% and non-GAAP operating margin was 19.6% for the fourth quarter of 2015. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.
"We are pleased with our strong performance in 2015," said Francisco D'Souza, CEO. "At a time when major technology shifts are disrupting all industries, clients are looking to a partner like Cognizant to work with them to create the winning business models of tomorrow at the intersection of the physical and digital worlds. Our investments in disruptive technologies, new business models and best-in-class delivery uniquely position us to enable clients to drive digital transformation at enterprise scale."
"In 2015, we strengthened our position as a leading digital transformation partner for our clients," said Gordon Coburn, President. "While digital opportunities significantly expand our addressable market, our rapidly growing consulting, infrastructure and business process services and geographic market expansion, continue to be solid drivers of demand for our services. Combined with our strong entrepreneurial culture and our agility, we are confident of winning market share and being the partner of choice for our clients."
Highlights – Full Year 2015
- Revenue increased to $12.42 billion, up 21.0% from 2014.
- Diluted EPS on a GAAP basis was $2.65, compared to $2.35 in 2014.
- Diluted EPS on a non-GAAP basis was $3.07, compared to $2.60 in 2014.
Revenue for 2015 increased to $12.42 billion, up 21.0% from $10.26 billion for 2014. GAAP net income for 2015 was $1.62 billion, or $2.65per diluted share, compared to $1.44 billion, or $2.35 per diluted share, for 2014. Diluted EPS on a non-GAAP basis was $3.07 in 2015, compared to $2.60 in 2014. GAAP operating margin was 17.3% and non-GAAP operating margin was 19.7% for 2015. Reconciliations of these non-GAAP financial measures to GAAP operating results and diluted EPS are included in the table at the end of this release.
"Our cash and investment balances, net of debt, grew by $1.5 billion during 2015 due to our strong business performance and strong cash flows," said Karen McLoughlin, Chief Financial Officer. "In addition, this strong cash flow allowed us to repurchase during the year over $375 million of our shares under our existing stock repurchase program, reflecting our commitment to drive shareholder value."
First Quarter & Full Year 2016 Outlook
The Company is providing the following guidance:
- First quarter 2016 revenue expected to be in the range of $3.18 billion to $3.24 billion.
- First quarter 2016 diluted EPS on a non-GAAP basis expected to be in the range of $0.78 to $0.80.
- Full year 2016 revenue expected to be in the range of $13.65 billion to $14.20 billion.
Full year 2016 diluted EPS on a non-GAAP basis expected to be in the range of $3.32 to $3.44
