Cognizant Technology Solutions (CTSH): Latest Results Show Potential

Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a consulting services provider, has released a good report for the first quarter of 2022. Despite persistent macroeconomic instability, the company’s key sectors continue to grow in sales.

Cognizant’s sales rose 9.7% year over year to $4.8 billion, with $186 million in free cash flow. From $0.97 a year ago, adjusted profits per share grew to $1.08. Due to the sustained high demand for cost optimization solutions, Cognizant’s sales in the financial services market improved by about 5%.

In addition, sales in a section of healthcare solutions increased (+8.1%), with solutions for digitizing clinical research procedures and factory automation technologies driving the growth. Cognizant, on the other hand, work in a difficult market marked by severe competition and workforce shortages. At the same time, the labor market mismatch allows CTSH to sell its services more effectively based on the availability of highly skilled individuals.

Cognizant Technology Solutions Corporation (CTSH) repurchased 50 million shares for $444 million during the quarter, with a total bought program of $1.7 billion.

Customers are still interested in Cognizant solutions in general. The corporation had a 4% growth in orders in the first quarter, bringing the 12-month order book to $23.4 billion. CTSH anticipates revenue growth of 7.2 to 9.2% by the end of 2022.

Cognizant is benefiting from the worldwide trend of economic digital transformation. The firm offers business and technology consultancy, as well as system integration and analytics. Specialists from CTSH also assist in the development and maintenance of IT solutions for business process management. Cognizant Technology Solutions Corporation has been working with developing IT technologies for over 20 years.

Shares of Cognizant Technology Solutions Corporation (NASDAQ: CTSH) have dropped -8.72% in the last week, but have been down -16.52% in the previous quarter. The stock’s price index has dropped -16.32% in a month and -16.52% in three months. In the last six months, it has returned -7.15%.