Cognizant net profit for FY 2014 is at USD 1.44 billion

New Jersey based Cognizant technology solutions corporations on 4th February 2015 have announced its fourth quarter and full year 2014 financial results.

Cognizant’s revenue for the fourth quarter ending December 2014 is at USD 2.74 billion compare to USD 2.36 billion in the same quarter last year, up 16.4%. without considering USD 80.6 million revenue from Trizatto, quarterly revenue for the company has gone up by 13%.


Revenue for the whole year 2014 increased to USD 10.26 billion from USD 8.84 billion in 2013, up 16.1%. Without considering USD 80.6 million revenue from TriZatto, revenue for cognizant is up 15.1% compared to 2013.

Company’s fourth quarter’s GAAP net income is at USD 362.9 million compared to USD 324.3 million in the fourth quarter of 2013. For the whole year 2014, GAAP net income is at USD 1.44 billion compared to USD 1.23 billion for 2013.

Cognizant’s income from operating which is derived after taking out operating expenses from company’s revenue excluding other income is at USD 1.88 billion for FY 2014 compared to USD 1.67 billion in FY 2013.

Basic EPS for Cognizant is USD 2.34 for the financial year 2014 compared to USD 2.03 for financial year 2013.

Financial service sector has contributed USD 4.2 billion, 41.8% of total revenue. Similarly Health care and manufacturing/retail/logistic segments of cognizant has also contributed USD 2.69 and USD 2.09 billion, 26.2% and 20.4% of total revenue respectively.

Geographically, North America is at top by contributing USD 7.88 billion, 76.8% of total revenue.

Table showing financial results of Cognizant Technology – USD in thousands

Particulars Q4 FY2014 Q4 FY2013 FY 2014 FY 2013
Revenues 2,742,230 2,355,488 10,262,681 8,843,189
Income from operations 479,408 447,841 1,884,878 1,677,910
Net income 362,857  324,332 1,439,267 1,228,578
Basic EPS in USD 0.60  0.54  2.37 2.03

Revenue analysis for cognizant – USD in thousands

Revenue by segment

Particulars Q4 FY2014 % of total FY 2014 % of total
Financial Services 1,121,147 40.9 4,285,614 41.8
Healthcare 772,657 28.2 2,689,427 10.2
Manufacturing/Retail/Logistics 534,272 19.5 2,093,560 20.4
Other 314,154 11.5 1,194,080 11.6
Total 2742230 10262681

Revenue by Geography

Particulars Q4 FY2014 % of total FY 2014 % of total
North America 2,133,773 77.8 7,879,785 76.8
United Kingdom 278,647 10.2 1,099,178 10.7
Rest of Europe 196,435 7.2 784,412 7.6
Rest of World 133375 1.9 499,306 4.9
Total 2742230 10262681

Cognizant, which currently has about 171,400 employees globally has increased overall headcount by about 5000 during the quarter ending December 2014. It has also announced a 2:1 stock split on its Class a common stock in the form of a 100% stock dividend.

Cognizant in its FY 2015 guidance expects the revenue for the quarter ending march 2015 (January-March quarter of 2015) to be at least USD 2.88 billion and full year 2015 revenue to be USD 12.21 billion, up at least 19% compared to 2014.

Francisco D’Souza, Chief Executive Officer of Cognizant, said, despite unfavorable European currency movements during the fourth quarter, we finished 2014 with strong revenue performance and believe we are well positioned to continue that momentum into 2015 on the strength of our integrated consulting, technology, digital and business services capabilities.

Gordon Coburn, President of Cognizant said 2014 was a significant year, marking 20 years of innovation and growth for Cognizant. Integration of our $2.8 billion acquisition of TriZetto, completed in the fourth quarter, is well underway and we’re excited by the healthcare opportunities we see.

Karen McLoughlin, Chief Financial Officer of Cognizant said, we closed 2014 on a strong note. Revenue growth, excluding the TriZetto acquisition, exceeded the guided range for the quarter, reflecting the strong demand for our services. Despite current exchange rates which will negatively impact 2015 revenue growth by approximately 2%, compared to average 2014 exchange rates, we are pleased to provide 2015 guidance of at least 19% compared to 2014.

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