Cognizant reports earnings decline for Q2

Cognizant Technology Solutions Corporation (CTSH) reported revenues of $4.01 billion for the second quarter of 2018, an increase of 9.2% compared to the same period last year.

GAAP net income dropped to $456 million or $0.78 per share from $470 million or $0.70 per share in the prior-year period, mainly due to FX losses associated with the depreciation of the Indian rupee and the initial funding of the Cognizant US Foundation. Adjusted diluted EPS came in at $1.19 in the quarter, beating analyst expectations.

Cognizant saw revenue increases across all its segments and geographies on a year-over-year basis. The company stated that it was making solid progress on its plan to accelerate its shift to digital services and solutions.

For the third quarter of 2018, Cognizant expects revenues of $4.06 billion to $4.10 billion and adjusted diluted EPS of $1.13. For the full year of 2018, the company expects revenues of $16.05 billion to $16.30 billion and adjusted EPS of at least $4.50.

Cognizant declared a quarterly cash dividend of $0.20 per share on its Class A common stock for shareholders of record on August 22, 2018. The dividend is payable on August 31, 2018.

Related: Cognizant Technology Solutions Corporation Q2 2018 Earnings Call Transcript

Related: Cognizant Q1 2018 Earnings Infographic