Quarterly Update
published on Nov 07, 2017
Report Overview:
NelsonHall’s Quarterly Update on Cognizant provides a snapshot of developments at Cognizant in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on Cognizant provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on Cognizant, looking at financial performance and key developments during the period.
It accompanies NelsonHall’s Key Vendor Assessment program which looks at Cognizant’s IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphases and new developments
- Revenue breakdowns
- Analysis of the company’s offerings and key service components
- Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Q3 2017 Performance: Revenues Again at Upper End of Guidance, Margin Beginning to Strengthen
Three of the four vertical groups continue to deliver strong growth, including inorganic growth in some verticals /regions. Financial Services, in particular large money center banks, continues to be a drag.
This was the first quarter for some time of y/y adjusted operating margin expansion. Management indicated being slightly ahead of plan in the drive to reach a 22% non-GAAP margin by 2019.
Headcount down: utilization up
Solid Performance throughout 2017 YTD; full year guidance raised at bottom end
But Commentary Generally Cautious
Two acquisitions in Europe to expand Cognizant Digital Business
Acquisitions in U.S. to Enhance Healthcare Payer BPS capabilities
This Quarterly Update on Cognizant is 16 pages. For details, contact [email protected]