Cognizant Technology Solutions Corp.’s CTSH first-quarter 2016 adjusted earnings of 76 cents per share came surpassed the Zacks Consensus Estimate of 70 cents while revenues of $3.20 billion fell short of the Consensus Estimate of $3.23 billion.Quarter DetailsSegment wise, the Financial services segment (40.2% of revenues) that includes insurance, banking and transaction processing grew 10.7% year over year to $1,285.7 million. Health care (28.5% of revenues) grew 4% year over year and came in at $914.1 million. Retail/manufacturing/ logistics (19.8% of revenues) continued its growth momentum and jumped 15.2% year over year to $632.5 million. Other revenues (11.5% of revenues), which include sales from service-oriented industries like communications, media and high tech, were $369.7 million, up 14.7% from the year-ago quarter.Region-wise, revenues from North America increased 9% year over year and represented 78% of revenues. Europe contributed 16.4% to revenues, which increased 10.4% year over year. The remaining 5.6% came from the Rest of the World where revenues jumped 24.9%.MarginsSelling, general & amortization (SG&A) expense, as a percentage of revenues, decreased 80 basis points (bps) from the year-ago quarter to 20.2%.The company reported GAAP operating margin of 17.3% and non-GAAP operating margin was 19.9%.Balance SheetCognizant exited the quarter with cash and cash equivalents (and short-term investments) of $4.5 billion, compared with $4.9 billion as of Dec 31, 2015. The company’s long term debt was $858.4 million compared with $876.8 million as of Dec 31, 2015.Cognizant repurchased $244.6 million worth of shares in the quarter.GuidanceFor the second quarter of 2016, the company expects revenues in a range of $3.34 billion to $3.40 billion. Non-GAAP earnings per share are expected to be in a band of 80 to 82 cents.For 2016, the company continues to expect non GAAP earnings in a range $3.32 to $3.44. However, it has lowered the higher-end of its revenue guidance. Revenues are now estimated in a range of $13.65 billion to $14.0 billion (earlier projection was $13.65 billion to $14.20 billion).Our TakeCognizant has been benefiting from its healthy exposure to fast-growing verticals like Financial Services and Healthcare. We expect Cognizant to benefit from strong demand for high quality, lower cost technology services especially in the outsourcing market. Rising demand for offshore services beyond traditional IT outsourcing namely, BPO (Business Process Outsourcing), KPO (Knowledge Process Outsourcing) and IT infrastructure services, also bodes well for the company.However, it can be impacted by a slowdown in regions like North America or unfavorable changes in industries like financial services. Also, given the breakneck pace of evolution in the technology space, the company has to constantly fend off competition from peers like Accenture ACN, Infosys INFY and Wipro Ltd WIT.Currently, Cognizant has a Zacks Rank #3 (Hold).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report COGNIZANT TECH (CTSH): Free Stock Analysis Report WIPRO LTD-ADR (WIT): Free Stock Analysis Report INFOSYS LTD (INFY): Free Stock Analysis Report ACCENTURE PLC (ACN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research