Cognizant Technology Solutions Corporation reported a net income of $520 million as per GAAP standards, or $0.88 per diluted share, compared to $557 million, or $0.92 per diluted share, in the first quarter of 2017.
Non-GAAP diluted EPS was $1.06, compared to $0.84 in the first quarter of 2017.
GAAP operating margin was 17.7% for the first quarter of 2018, and non-GAAP operating margin 20.3%.
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Cognizant reported a first quarter revenue of $3.91 billion, up 10.3% from $3.55 billion in the year-ago quarter.
For the second quarter 2018, Cognizant expects the revenue to be in the range of $4.00 billion to $4.04 billion. For the full year 2018, it expects the revenue to be in the range of $16.05 billion to $16.30 billion.
“First quarter results demonstrate solid execution of our plan to drive sustainable revenue growth while increasing margins," said Karen McLoughlin, Chief Financial Officer, in a release. "Our full year 2018 non-GAAP diluted EPS guidance reflects a higher than originally anticipated effective income tax rate due to the updated interpretation of the U.S. Tax Cuts and Jobs Act of 2017. Our strong balance sheet and cash flows continue to support both our capital return programme and our investments in the business to drive future growth and continue our shift to digital service and solutions,” he added.
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The company has declared a quarterly cash dividend of $0.20 per share on Cognizant Class A common stock for shareholders of record at the close of business on May 22, 2018. This dividend will be payable on May 31, 2018.