Cognizant Q3 Revenue Grows 4.6% but Bookings Fall 7%, Triggering Share Price Decline
Cognizant Technology Solutions (CTSH) reported third-quarter revenue of approximately $5.7 billion, a 4.6% year-over-year increase. However, much of this growth was driven by acquisitions and resold third-party products rather than core consulting services. The company's underlying business saw weakness in the Health Sciences and Products and Resources segments, which together account for over half of its revenue. Investor concern centered on a 7% year-over-year decline in bookings, which serves as a critical indicator for future revenue pipelines. Additionally, while adjusted earnings per share (EPS) rose, this was attributed to aggressive share buybacks rather than operational profit growth. Management's cautious fourth-quarter guidance suggests continued slowing momentum.
Tickers: $CTSH
Topics: bookings decline earnings per share operating margin revenue growth segment performance