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    Cognizant Technology Solutions Corp (CTSH)

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    Business Description

    Cognizant is a leading professional services company that focuses on engineering modern businesses and delivering strategic outcomes for clients. The company offers a wide range of services, including digital services and solutions, consulting, application development, systems integration, quality engineering and assurance, application maintenance, infrastructure and security, as well as business process services and automation . Cognizant's business is organized into four main segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology .

    1. Health Sciences - Provides innovative solutions and services to enhance healthcare delivery and improve patient outcomes, focusing on digital transformation and data-driven insights.
    2. Financial Services - Delivers comprehensive services to banking, insurance, and capital markets clients, emphasizing digital transformation and operational efficiency.
    3. Products and Resources - Offers strategic solutions to manufacturing, logistics, energy, and retail sectors, aiming to optimize operations and drive growth through technology.
    4. Communications, Media and Technology - Supports clients in the media, entertainment, and technology industries with services that enhance digital engagement and streamline operations.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Ravi Kumar SChief Executive OfficerJanuary 2023Ravi Kumar S has been the Chief Executive Officer of Cognizant since January 2023. Previously, he was the President of Infosys, leading the Infosys Global Services Organization. He holds a bachelor's degree in Engineering from Shivaji University and an MBA from Xavier Institute of Management, India .
    Jatin DalalChief Financial OfficerDecember 4, 2023Jatin Dalal has been serving as the Chief Financial Officer of Cognizant since December 4, 2023. Before joining Cognizant, he was the President and CFO of Wipro Limited. He is a Chartered Accountant, Cost Accountant, Chartered Management Accountant, and Chartered Financial Analyst .
    Balu Ganesh AyyarEVP and President, Intuitive Operations and Automation and Industry SolutionsJuly 2022Balu Ganesh Ayyar has been serving as the Executive Vice President and President, Intuitive Operations and Automation and Industry Solutions at Cognizant since July 2022. He assumed additional responsibilities for Industry Solutions in April 2023. Previously, he was the CEO of Mphasis .
    Kathryn DiazEVP, Chief People OfficerSeptember 2023Kathryn Diaz has been the Executive Vice President and Chief People Officer at Cognizant since September 2023. She initially held the role on an interim basis from May 2023. Before this, she was the Head of Global Total Rewards at Cognizant .
    Surya GummadiEVP and President, AmericasJanuary 2023Surya Gummadi has been serving as the Executive Vice President and President, Americas at Cognizant since January 2023. He held the role on an interim basis from late June 2022. He has held various leadership roles during his 25-year tenure with the company .
    John KimEVP, Chief Legal Officer, Chief Administrative Officer, and Corporate SecretaryFebruary 2024John Kim has been serving as the Executive Vice President, Chief Legal Officer, Chief Administrative Officer, and Corporate Secretary at Cognizant since February 2024. Previously, he was the EVP, General Counsel, Chief Corporate Affairs Officer, and Secretary from March 2021 .
    Robert TelesmanicSVP, Controller, and Chief Accounting OfficerJanuary 2017Robert Telesmanic has been serving as the Senior Vice President, Controller, and Chief Accounting Officer at Cognizant since January 2017. He has been with the company in various roles since 2003. Before joining Cognizant, he spent over 14 years with Deloitte & Touche LLP .

    Questions to Ask Management

    1. With the acquisition of Belcan expected to expand your ER&D capabilities and diversify into the high-growth aerospace and defense sectors, how do you plan to integrate this new business, and what challenges do you foresee in achieving synergy with your existing operations? ,

    2. Given that Financial Services and Healthcare together account for 60% of your business, how are you addressing the risk of over-reliance on these two sectors, and what strategies are in place to diversify your revenue streams?

    3. You mentioned that clients' discretionary spending behavior remains unchanged from recent quarters and the demand environment remains challenging; how do you plan to drive growth in this environment, and what specific actions are you taking to stimulate demand?

    4. Despite strong bookings, the conversion of these bookings into revenue appears to be taking longer due to extended contract durations; how is this affecting your revenue growth expectations, and what measures are you implementing to improve the revenue conversion timing? ,

    5. With the implementation of your NextGen program and overall cost discipline, adjusted operating margin increased to 15.2%. Do you see further opportunities for margin expansion, and what potential headwinds could impact your operating margins in the coming quarters? ,

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateN/A
    End Date/DurationNo expiration date
    Total additional amountN/A
    Remaining authorization amount$1,377 million
    DetailsAllows repurchase of up to $11.5 billion of Class A common stock through open market purchases or private transactions.

    Debt Maturity Schedule

    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    202433 Current maturities of the Term Loan 0.875 2.7% = (33 / 1,218) * 100
    2027650 Term Loan 0.75 - 1.125 53.4% = (650 / 1,218) * 100
    20271,850 Unsecured revolving credit facility 0.75 - 1.125 151.9% = (1,850 / 1,218) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Accenture
    • Atos
    • Capgemini
    • Deloitte Digital
    • DXC Technology
    • EPAM Systems
    • Genpact
    • HCL Technologies
    • IBM Consulting
    • Infosys Technologies
    • Tata Consultancy Services
    • Wipro

    These companies are mentioned as direct competitors in the markets for Cognizant's services, which are highly competitive and characterized by a large number of participants and subject to rapid change .

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1997 PresentCurrent auditor