Cognizant Technology Solutions (CTSH) reported its Q22020 earnings on 29th July 2020. Revenue declined 2.5% on a Y-o-Y basis to $4 billion. This decline also included the impact of the exit from certain non-strategic content service business. Adjusted diluted earnings per share came in at $0.82, a drop of about 13% as compared to the same quarter the previous year. The company now expects CTSH earnings for the full year 2020 to be around $3.48 to $3.58.
According to Brian Humphries, CEO, Cognizant Technology Solutions, “We are gaining commercial momentum. This is illustrated by our bookings trends, which grew 14% year-over-year in the first half of 2020, notwithstanding the challenges we faced in the quarter. North America, which grew 25% plus in the first half is particularly strong. This was offset by declines in global growth markets given the signature of the Samlink agreement in Q2 2019.”
He further added, “We are making noteworthy progress in digital. In the second quarter, revenue in digital grew 14% year-over-year and now represents 42% of our digital — of our company revenue mix. First half 2020 digital bookings growth of almost 50% was fueled by digital engineering, AI and analytics, interactive and software-as-a-service.”
In other CTSH news, Cognizant recently announced that it is acquiring Microsoft public cloud transformation specialist New Signature. The terms are currently undisclosed. With this acquisition, New Signature’s 500+ cloud experts from the US, Canada, and the UK will join Cognizant’s new Microsoft Business Group. New Signature will allow Cognizant to create a backbone for a new Microsoft cloud-focused group.
CTSH stock closed at $64.79 on 29th July 2020, up 14.03% for the past month.