Financial Analysis

"On January 1, 2026, we acquired 100% ownership in 3Cloud, one of the largest independent Microsoft Azure services providers and a global leader in Azure-dedicated AI enablement solutions and products. On December 31, 2025, we placed cash consideration of $733 million in escrow, which was deemed to be restricted cash and included in ""Other noncurrent assets"" in our consolidated statement of financial position. See Note 18 . There were no acquisitions completed during the year ended December 31, 2025. Acquisitions completed during each of the years ended December 31, 2024 and 2023 were not individually or in the aggregate material to our operations. Accordingly, pro forma results have not been presented. The primary items that generated goodwill are the acquired assembled workforces and synergies between the acquired companies and us, neither of which qualify as an identifiable intangible asset. 2024 On January 22, 2024, through the execution of a share purchase agreement, we acquired 100% owners hip in Thirdera, an Elite ServiceNow Partner specializing in advisory, implementation and optimization solutions related to the ServiceNow platform. On August 26, 2024, through the execution of a merger agreement, we acquired 100% ownership in Belcan, a leading global supplier of engineering research & development services for the commercial aerospace, defense, space, marine and industrial verticals. We paid $1,195 million in cash, net of cash acquired, and issued 1,470,589 shar …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"We are involved in various claims and legal proceedings arising in the ordinary course of business. We accrue a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, we do not record a liability, but instead disclose the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. While we do not expect that the ultimate resolution of any existing claims and proceedings (other than the specific matters described below, if decided adversely), individually or in the aggregate, will have a material adverse effect on our financial position, an unfavorable outcome in some or all of these proceedings could have a material adverse impact on results of operations or cash flows for a particular period. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. On January 15, 2015, Syntel sued TriZetto and Cognizant in the USDC-SDNY. Syntels complaint alleged breach of contract against TriZetto, and tortious interference and misappropriation of trade secrets against Cognizant and TriZetto, stemming from Cognizants hiring of certain former Syntel employees. Cognizant and TriZetto countersued on March 23, 2015, for breach of contract, misappropriation of trad …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

We have a Credit Agreement providing for a $650 million Term Loan and a $1,850 million unsecured revolving credit facility, which are each due to mature in October 2027. We are required under the Credit Agreement to make scheduled quarterly principal payments on the Term Loan. During the third quarter of 2024, we borrowed $600 million under our revolving credit facility to partially fund the acquisition of Belcan. We repaid $300 million during the fourth quarter of 2024 and the remaining $300 million during the first quarter of 2025. The Credit Agreement requires interest to be paid, at our option, at either the Term Benchmark, Adjusted Daily Simple RFR or the ABR Rate (each as defined in the Credit Agreement), plus, in each case, an Applicable Margin (as defined in the Credit Agreement). Initially, the Applicable Margin is 0.875% with respect to Term Benchmark loans and RFR loans and 0.00% with respect to ABR loans. Subsequently, the Applicable Margin with respect to Term Benchmark loans and RFR loans will be determined quarterly and may range from 0.75% to 1.125%, depending on our public debt ratings or, if we have not received public debt ratings, from 0.875% to 1.125%, depending on our Leverage Ratio, which is the ratio of indebtedness for borrowed money to Consolidated EBITDA, as defined in the Credit Agreement. Since the issuance of the Term Loan, t he Term Loan has been a Term Benchmark loan. The Credit Agreement contains customary affirmative and negative covenants as …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Revenues The tables below present disaggregated revenues from contracts with clients by client location, service line and contract type for each of our reportable business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Our consulting and technology services include consulting, application development, systems integration, quality engineering and assurance services as well as software solutions and related services while our outsourcing services include application maintenance, infrastructure and security as well as business process services. Revenues are attributed to geographic regions based upon client location, which is the client's billing address. Substantially all revenues in the North America region relate to clients in the United States. Year Ended December 31, 2025 (in millions) HS FS P&R CMT Total Revenues Geography: North America $ 5,311 $ 4,380 $ 3,728 $ 2,361 $ 15,780 United Kingdom 214 643 584 481 1,922 Continental Europe 667 640 650 133 2,090 Europe - Total 881 1,283 1,234 614 4,012 Rest of World 155 510 323 328 1,316 Total $ 6,347 $ 6,173 $ 5,285 $ 3,303 $ 21,108 Service line: Consulting and technology services $ 3,651 $ 4,365 $ 3,697 $ 1,820 $ 13,533 Outsourcing services 2,696 1,808 1,588 1,483 7,575 Total $ 6,347 $ 6,173 $ 5,285 $ 3,303 $ 21,108 Type of contract: Time and materials $ 1,978 $ 3,161 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Our 2023 Incentive Plan provides for the issuance of a total of 25.0 million shares of Class A common stock to eligible employees, less (i) the number of shares granted under the 2017 Incentive Plan between March 24, 2023 and June 6, 2023, plus (ii) any shares subject to awards under the prior 2017 and 2009 Incentive Plans that are forfeited after June 6, 2023. The 2023 Incentive Plan does not affect any awards outstanding under the prior plans. The Purchase Plan provides for the issuance of up to 50.0 million shares of Class A common stock to eligible employees. As of December 31, 2025, we have 20.2 million and 9.8 million shares available for grant under the 2023 Incentive Plan and the Purchase Plan, respectively. The allocation of total stock-based compensation expense between cost of revenues, selling, general and administrative expenses and restructuring charges as well as the related income tax benefit were as follows for the three years ended December 31: (in millions) 2025 2024 2023 Cost of revenues $ 26 $ 26 $ 30 SG&A expenses 155 150 153 Restructuring charges (1) (7) Total stock-based compensation expense $ 181 $ 175 $ 176 Income tax benefit $ 37 $ 38 $ 34 Restricted Stock Units and Performance Stock Units We granted RSUs that vest in quarterly or annual installments over periods of up to four years to employees, including our executive officers. A summary of the activity for RSUs granted under our stock-based compensation plans as of December 31, 2025 and chang …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Changes in goodwill by our reportable business segments were as follows for the years ended December 31, 2025 and 2024: (in millions) January 1, 2025 Goodwill Additions Foreign Currency Translation Adjustments December 31, 2025 Health Sciences $ 2,895 $ $ 20 $ 2,915 Financial Services 1,129 48 1,177 Products and Resources 1,884 50 1,934 Communications, Media and Technology 1,045 35 1,080 Total goodwill $ 6,953 $ $ 153 $ 7,106 (in millions) January 1, 2024 Goodwill Additions and Adjustments Foreign Currency Translation Adjustments December 31, 2024 Health Sciences $ 2,840 $ 68 $ (13) $ 2,895 Financial Services 1,109 48 (28) 1,129 Products and Resources 1,217 698 (31) 1,884 Communications, Media and Technology 919 144 (18) 1,045 Total goodwill $ 6,085 $ 958 $ (90) $ 6,953 Based on our most recent goodwill impairment assessment performed as o f October 31, 2025, we concluded that the goodwill in each of our reporting units was not at risk of impairment. We have not recognized any impairment losses on our goodwill. Components of intangible assets were as follows as of December 31: 2025 2024 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 2,593 $ (1,310) $ 1,283 $ 2,534 $ (1,068) $ 1,466 Developed technology 394 (386) 8 384 (379) 5 Indefinite lived trademarks 116 116 116 116 Finite lived trademarks and other 84 (74) 10 81 (69) 12 Total intangible assets $ 3, …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Effective January 1, 2025, we adopted the new income tax disclosure standard (Income Taxes (Topic 740): Improvements to Income Tax Disclosures) on a prospective basis. Accordingly, the tables presenting our income tax provision and effective tax rate reconciliation will reflect the new standard for 2025, while the 2024 and 2023 disclosures will continue to follow the previous disclosure requirements. Income before provision for income taxes shown below is based on the geographic location to which such income was attributed for years ended December 31: (in millions) 2025 2024 2023 United States $ 1,189 $ 906 $ 813 Foreign 2,290 2,032 1,974 Income before provision for income taxes $ 3,479 $ 2,938 $ 2,787 The provision for income taxes consisted of the following components for the years ended December 31: (in millions) 2025 2024 2023 Current: Federal $ 216 State 139 Federal and state $ 426 $ 522 Foreign 576 Foreign 642 485 Total current provision 931 1,068 1,007 Deferred: Federal 302 State 4 Federal and state (229) (354) Foreign 21 Foreign (126) 15 Total deferred income tax (benefit) 327 (355) (339) Total provision for income taxes $ 1,258 $ 713 $ 668 We are involved in two separate ongoing disputes with the ITD in connection with previously disclosed share repurchase transactions undertaken by CTS India in 2013 and 2016 to repurchase shares from its shareholders (non-Indian Cognizant entities) valued at $523 million and $2.8 billion, respectively. The 2016 transaction was unde …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

The following table provides information on the components of our operating and finance leases included in our consolidated statement of financial position as of December 31: Leases Location on Statement of Financial Position 2025 2024 Assets (in millions) ROU operating lease assets Operating lease assets, net $ 573 $ 552 ROU finance lease assets Property and equipment, net 10 14 Total $ 583 $ 566 Liabilities Current Operating lease Operating lease liabilities $ 153 $ 152 Finance lease Accrued expenses and other current liabilities 10 8 Noncurrent Operating lease Operating lease liabilities, noncurrent 423 420 Finance lease Other noncurrent liabilities 12 15 Total $ 598 $ 595 For the years ended December 31, 2025, 2024 and 2023, our operating lease costs were $197 million, $216 million and $304 million, respectively, including variable lease costs of $19 million, $23 million and $21 million, respectively . Our short-term lease rental expense was $16 million, $11 million and $15 million for the years ended December 31, 2025, 2024 and 2023, respectively. Lease interest expense related to our finance leases for each of the years ended December 31, 2025, 2024 and 2023 was immaterial. The following table provides information on the weighted average remaining lease term and weighted average discount rate for our operating leases as of December 31: Operating Lease Term and Discount Rate 2025 2024 Weighted average remaining lease term 4.9 years 5.3 years Weighted average discount rat …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements Date Issued and Topic Date Adopted and Method Description Impact December 2023 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Annual period starting in 2025 Prospective basis The standard requires enhanced income tax disclosures primarily related to the income tax rate reconciliation and income taxes paid information. See Note 10 for disclosures that reflect the adoption of this standard. New Accounting Pronouncements Date Issued and Topic Effective Date Description Impact November 2024 Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) Annual period starting in 2027 and interim periods starting in 2028 Prospective basis The standard is intended to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. We are currently evaluating the impact on our disclosures. July 2025 Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets Annual reporting periods starting in 2026, and interim reporting periods within those annual reporting periods Prospective basis The standard is intended to simplify the measurement of credit losses for accounts receivable and contract assets by providing a practical expedient that allows an entity to assume that current condit …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Defined Contribution Plans We contribute to defined contribution plans, including 401(k) savings and supplemental retirement plans in the United States. Total expenses for our contributions to our U.S. plans were $124 million, $115 million and $117 million for the years ended December 31, 2025, 2024 and 2023, respectively. In addition, we maintain employee benefit plans that cover substantially all India-based employees. The employees provident fund, pension and family pension plans are statutorily defined contribution retirement benefit plans. Under the plans, employees contribute up to 12.0% of their eligible compensation, which is matched by an equal contribution by the Company. For these plans, we recognized a contribution expense of $152 million, $151 million and $149 million for the years ended December 31, 2025, 2024 and 2023, respectively. Outside of the United States and India, we incurred expenses of $125 million, $104 million and $107 million for the years ended December 31, 2025, 2024 and 2023, respectively, related to our contributions to defined contribution plans. Defined Benefit Pension Plans We offer defined benefit pension plans that are statutorily required and primarily cover employees in certain countries. Our primary plan is in Switzerland, which provides pension benefits based on a participants contributions, the Companys matching contributions and a minimum pension guarantee. As of December 31, 2025 and 2024, the net liability recognized on the balance …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"At the end of 2024, we completed our NextGen program. We did not incur any costs related to the NextGen program during 2025. The total costs related to our NextGen program are reported in ""Restructuring charges"" in our consolidated statements of operations. We do not allocate these charges to individual segments in internal management reports used by the CODM. Accordingly, such expenses are separately disclosed in our segment reporting as unallocated costs. See Note 17 . The costs related to our NextGen program were as follows for the years ended December 31: (in millions) 2024 2023 Employee separation costs $ 85 $ 115 Facility exit costs (1) 36 108 Third party and other costs (2) 13 6 Total restructuring charges $ 134 $ 229 (1) For the year ended December 31, 2024, facility exit costs include lease restructuring of $23 million and accelerated depreciation charges of $13 million. For the year ended December 31, 2023, facility exit costs include lease restructuring of $71 million, accelerated depreciation charges of $36 million and impairment of long-lived assets of $1 million. (2) Third party and other costs include certain non-facility related asset impairments and professional services fees directly related to the NextGen program. Changes in our accrued employee separation costs included in ""Accrued expenses and other current liabilities"" in our consolidated statements of financial position are presented in the table below for the years ended December 31: (in millions) …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Disaggregation of Revenues The tables below present disaggregated revenues from contracts with clients by client location, service line and contract type for each of our reportable business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Our consulting and technology services include consulting, application development, systems integration, quality engineering and assurance services as well as software solutions and related services while our outsourcing services include application maintenance, infrastructure and security as well as business process services. Revenues are attributed to geographic regions based upon client location, which is the client's billing address. Substantially all revenues in the North America region relate to clients in the United States. Year Ended December 31, 2025 (in millions) HS FS P&R CMT Total Revenues Geography: North America $ 5,311 $ 4,380 $ 3,728 $ 2,361 $ 15,780 United Kingdom 214 643 584 481 1,922 Continental Europe 667 640 650 133 2,090 Europe - Total 881 1,283 1,234 614 4,012 Rest of World 155 510 323 328 1,316 Total $ 6,347 $ 6,173 $ 5,285 $ 3,303 $ 21,108 Service line: Consulting and technology services $ 3,651 $ 4,365 $ 3,697 $ 1,820 $ 13,533 Outsourcing services 2,696 1,808 1,588 1,483 7,575 Total $ 6,347 $ 6,173 $ 5,285 $ 3,303 $ 21,108 Type of contract: Time and materials $ 1,978 $ 3,16 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Our chief executive officer is our chief operating decision maker. Our CODM regularly reviews the performance of our business by four industry-based operating segments, which are our four reportable business segments: Health Sciences, Financial Services, Products and Resources, and Communications, Media and Technology. We have an industry-led go-to-market strategy, with client partners, account executives and client relationship managers aligned to the specific industries they serve. Our CODM is regularly provided segment revenues and operating profit, including budget-to-actual variances in segment revenue, to formulate industry-focused strategic priorities, allocate financial resources, set targets and key performance indicators, and evaluate the results of such strategies. These strategic priorities, targets and key performance indicators are translated and applied to each client account, rolling up to respective industry-based operating segments. Our hiring and deployment plans are devised according to the strategic priorities and targets set for the client accounts. In the first quarter of 2025, we made certain changes to the internal measurement of segment operating profit for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to reflect a more complete cost of delivery. Specifically, segment operating profit now includes an allocation of certain corporate costs, which were previously included in ""unallocated c …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Dividend On February 3, 2026, our Board of Directors approved the Company's quarterly declaration of a $0.33 per share dividend with a record date of February 18, 2026 and a payment date of February 26, 2026. Acquisition On January 1, 2026, through the execution of a purchase agreement, we acquired 100% ownership in 3Cloud, one of the largest independent Microsoft Azure services providers and a global leader in Azure-dedicated AI enablement solutions and products. This acquisition expands our Azure portfolio and deepens our expertise in complex, engineering-intensive engagements that enable AI-led business transformation. On December 31, 2025, we placed cash consideration of $733 million in escrow, which was deemed to be restricted cash and included in ""Other noncurrent assets"" in our consolidated statement of financial position. We are yet to complete the initial accounting for the acquisition and, therefore, unable to disclose the major classes of assets acquired and liabilities assumed, and any separately recognized transactions"

SubsequentEventsTextBlock

"On January 1, 2026, pursuant to a purchase agreement, we acquired 100% ownership in 3Cloud, one of the largest independent Microsoft Azure services providers and a global leader in Azure-dedicated AI enablement solutions and products. On December 31, 2025, we placed cash consideration of $733 million in escrow, which was deemed to be restricted cash and included in ""Other noncurrent assets"" in our consolidated statement of financial position. On June 22, 2026, pursuant to a purchase agreement, we acquired 100% ownership in Astreya Partners, Inc., a global AI-first IT managed services and solutions provider. The allocations of preliminary purchase price to the fair value of the aggregate assets acquired and li abilities assumed were as follows: (in millions) 3Cloud Astreya Total Weighted Average Useful Life Cash $ 3 $ 31 $ 34 Trade accounts receivable 26 45 71 Other current assets 2 24 26 Property and equipment and other noncurrent assets 2 18 20 Operating lease assets 2 2 Non-deductible goodwill 119 407 526 Tax-deductible goodwill 477 477 Customer relationship assets 130 250 380 9.2 years Other definite-lived intangible assets 2 1 3 1.0 year Other current liabilities (30) (32) (62) Deferred income tax liabilities, net (3) (68) (71) Other noncurrent liabilities (13) $ (13) Purchase price, inclusive of contingent consideration 1 $ 728 $ 665 $ 1,393 (1) The purchase price for Astreya includes a contingent consideration component with a maximum payout of $25 million, valued at …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"We are involved in various claims and legal proceedings arising in the ordinary course of business. We accrue a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, we do not record a liability, but instead disclose the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. While we do not expect that the ultimate resolution of any existing claims and proceedings (other than the specific matters described below, if decided adversely), individually or in the aggregate, will have a material adverse effect on our financial position, an unfavorable outcome in some or all of these proceedings could have a material adverse impact on results of operations or cash flows for a particular period. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. On January 15, 2015, Syntel sued TriZetto and Cognizant in the USDC-SDNY. Syntels complaint alleged breach of contract against TriZetto, and tortious interference and misappropriation of trade secrets against Cognizant and TriZetto, stemming from Cognizants hiring of certain former Syntel employees. Cognizant and TriZetto countersued on March 23, 2015, for breach of contract, misappropriation of trad …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

We have a Credit Agreement providing for a $650 million Term Loan and a $1,850 million unsecured revolving credit facility, which are each due to mature in October 2027. During the second quarter of 2026, we borrowed $1,000 million under our revolving credit facility. We are required under the Credit Agreement to make scheduled quarterly principal payments on the Term Loan. The Credit Agreement requires interest to be paid, at our option, at either the Term Benchmark, Adjusted Daily Simple RFR or the ABR Rate (each as defined in the Credit Agreement), plus, in each case, an Applicable Margin (as defined in the Credit Agreement). Initially, the Applicable Margin is 0.875% with respect to Term Benchmark loans and RFR loans and 0.00% with respect to ABR loans. Subsequently, the Applicable Margin with respect to Term Benchmark loans and RFR loans will be determined quarterly and may range from 0.75% to 1.125%, depending on our public debt ratings or, if we have not received public debt ratings, from 0.875% to 1.125%, depending on our Leverage Ratio, which is the ratio of indebtedness for borrowed money to Consolidated EBITDA, as defined in the Credit Agreement. Since the issuance of the Term Loan, t he Term Loan has been a Term Benchmark loan. The Credit Agreement contains customary affirmative and negative covenants as well as a financial covenant. We were in compliance with all debt covenants and representations of the Credit Agreement as of June 30, 2026. Short-term Debt As of …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (in millions) HS FS P&R CMT Total HS FS P&R CMT Total Revenues Geography: North America $ 1,307 $ 1,263 $ 918 $ 639 $ 4,127 $ 2,618 $ 2,439 $ 1,834 $ 1,288 $ 8,179 United Kingdom 60 165 151 116 492 117 336 315 233 1,001 Continental Europe 164 167 171 33 535 332 333 332 68 1,065 Europe - Total 224 332 322 149 1,027 449 669 647 301 2,066 Rest of World 41 138 82 66 327 84 269 162 134 649 Total $ 1,572 $ 1,733 $ 1,322 $ 854 $ 5,481 $ 3,151 $ 3,377 $ 2,643 $ 1,723 $ 10,894 Service line: Consulting and technology services $ 925 $ 1,255 $ 900 $ 438 $ 3,518 $ 1,838 $ 2,440 $ 1,801 $ 930 $ 7,009 Outsourcing services 647 478 422 416 1,963 1,313 937 842 793 3,885 Total $ 1,572 $ 1,733 $ 1,322 $ 854 $ 5,481 $ 3,151 $ 3,377 $ 2,643 $ 1,723 $ 10,894 Type of contract: Time and materials $ 487 $ 848 $ 515 $ 455 $ 2,305 $ 961 $ 1,628 $ 1,038 $ 889 $ 4,516 Fixed-price 803 825 718 344 2,690 1,609 1,633 1,431 741 5,414 Transaction or volume-based 282 60 89 55 486 581 116 174 93 964 Total $ 1,572 $ 1,733 $ 1,322 $ 854 $ 5,481 $ 3,151 $ 3,377 $ 2,643 $ 1,723 $ 10,894 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 (in millions) HS FS P&R CMT Total HS FS P&R CMT Total Revenues Geography: North America $ 1,298 $ 1,096 $ 918 $ 600 $ 3,912 $ 2,628 $ 2,139 $ 1,829 $ 1,170 $ 7,766 United Kingdom 51 159 148 124 482 100 312 285 242 939 Continental Europe 166 160 159 35 520 326 307 312 68 1,013 Europe - Total 21 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Our effective income tax rates were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Effective income tax rate 26.4 % 23.4 % 25.2 % 23.9 % The effective income tax rate for the six months ended June 30, 2026 was positively impacted by $34 million of discrete benefits in Q1 2026, driven by the agreed terms of an anticipated conclusion of an advance pricing agreement. We are involved in two separate ongoing disputes with the ITD in connection with previously disclosed share repurchase transactions undertaken by CTS India in 2013 and 2016 to repurchase shares from its shareholders (non-Indian Cognizant entities) valued at $523 million and $2.8 billion, respectively. The 2016 transaction was undertaken pursuant to a plan approved by the High Court in Chennai, India, and resulted in the payment of $135 million in Indian income taxes - an amount we believe includes all the applicable taxes owed for this transaction under Indian law. In March 2018, the ITD asserted that it is owed an additional 33 billion Indian rupees ($349 million at the June 30, 2026 exchange rate) on the 2016 transaction. We deposited 5 billion Indian rupees, representing 15% of the disputed tax amount related to the 2016 transaction, with the ITD. Additionally, certain time deposits of CTS India were placed under lien in favor of the ITD, representing the remainder of the disputed tax amount. In April 2020, we received a formal assessment from the ITD on the 2016 transactio …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements Date Issued and Topic Date Adopted and Method Description Impact July 2025 Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets Adopted effective January 1, 2026 Prospective basis The standard is intended to simplify the measurement of credit losses for accounts receivable and contract assets by providing a practical expedient that allows an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. Adoption did not have a significant impact on our consolidated financial statements. September 2025 IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software Early adopted effective January 1, 2026 Prospective basis The standard is intended to modernize the internal-use software guidance, making it easier to apply to various software development methods. Adoption did not have a significant impact on our consolidated financial statements. December 2025 Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities Early adopted effective January 1, 2026 Prospective basis The standard provides authoritative guidance for business entities receiving government grants, establishing rules for their recognition, measurement, presentation, and disclosure. Adoption did not have a significant impact on our consoli …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"In the second quarter of 2026, we initiated Project Leap, a program designed to accelerate our transformation to the operating model of the future by funding investments in our integrated offerings, AI capabilities and partnerships, reshaping productivity through competitive offerings and upskilling our workforce. In connection with Project Leap, we expect to record total costs of $230 million to $320 million consisting of $200 million to $270 million of employee severance and other personnel related costs and $30 million to $50 million of other charges. The costs related to Project Leap are reported in ""Restructuring charges"" in our unaudited consolidated statements of operations. We do not allocate these charges to individual segments in internal management reports used by the CODM. Accordingly, such expenses are separately disclosed in our segment reporting as unallocated costs. See Note 12 . Project Leap charges for each of the three and six months ended June 30, 2026 were $84 million and included $56 million of employee separation costs and $28 million of other costs. Other costs included certain facility exit costs and other costs related to Project Leap. Changes in our accrued employee separation costs related to Project Leap included in ""Accrued expenses and other current liabilities"" in our unaudited consolidated statements of financial position are presented in the table below for the six months ended June 30: (in millions) 2026 Beginning balance $ Employee sep …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Disaggregation of Revenues The tables below present disaggregated revenues from contracts with clients by client location, service line and contract type for each of our reportable business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Our consulting and technology services include consulting, application development, systems integration, quality engineering and assurance services as well as software solutions and related services while our outsourcing services include application maintenance, infrastructure and security as well as business process services. Revenues are attributed to geographic regions based upon client location, which is the client's billing address. Substantially all revenues in the North America region relate to clients in the United States. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (in millions) HS FS P&R CMT Total HS FS P&R CMT Total Revenues Geography: North America $ 1,307 $ 1,263 $ 918 $ 639 $ 4,127 $ 2,618 $ 2,439 $ 1,834 $ 1,288 $ 8,179 United Kingdom 60 165 151 116 492 117 336 315 233 1,001 Continental Europe 164 167 171 33 535 332 333 332 68 1,065 Europe - Total 224 332 322 149 1,027 449 669 647 301 2,066 Rest of World 41 138 82 66 327 84 269 162 134 649 Total $ 1,572 $ 1,733 $ 1,322 $ 854 $ 5,481 $ 3,151 $ 3,377 $ 2,643 $ 1,723 $ 10,894 Service line: Consulting and technolog …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Our chief executive officer is our chief operating decision maker. Our CODM regularly reviews the performance of our business by four industry-based operating segments, which are our four reportable business segments: Health Sciences, Financial Services, Products and Resources, and Communications, Media and Technology. We have an industry-led go-to-market strategy, with client partners, account executives and client relationship managers aligned to the specific industries they serve. Our CODM is regularly provided segment revenues and operating profit, including budget-to-actual variances in segment revenue, to formulate industry-focused strategic priorities, allocate financial resources, set targets and key performance indicators, and evaluate the results of such strategies. In the first quarter of 2026, we made certain changes to the internal measurement of segment operating profit for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to reflect a more complete cost of delivery. Specifically, segment operating profit now includes the allocation of corporate costs, which were previously included in ""unallocated costs"", including amortization expense related to acquired intangible assets. Beginning in 2026, segment operating profits have been reported using the new allocation methodology and we have recast the 2025 results to conform to the new methodology. Revenue from each client is attributed to the operating se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Dividend On July 27, 2026, the Board of Directors approved the Company's declaration of a $0.33 per share dividend with a record date of August 18, 2026 and a payment date of August 25, 2026.

SubsequentEventsTextBlock