$CTSH

COGNIZANT TECHNOLOGY SOLUTIONS CORP

CIK:0001058290|SEC Filings

Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 5,481,000,000	$ 5,245,000,000	$ 10,894,000,000	$ 10,360,000,000
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization expense shown separately below)	3,652,000,000	3,479,000,000	7,290,000,000	6,876,000,000
Selling, general and administrative expenses	728,000,000	810,000,000	1,519,000,000	1,601,000,000
Restructuring charges	84,000,000	0	84,000,000	0
Depreciation and amortization expense	143,000,000	139,000,000	284,000,000	275,000,000
(Gain) on sale of property and equipment	0	0	0	(62,000,000)
Income from operations	874,000,000	817,000,000	1,717,000,000	1,670,000,000
Other income (expense), net:
Interest income	18,000,000	23,000,000	40,000,000	53,000,000
Interest expense	(13,000,000)	(9,000,000)	(20,000,000)	(21,000,000)
Foreign currency exchange gains (losses), net	7,000,000	7,000,000	25,000,000	9,000,000
Other, net	(11,000,000)	4,000,000	(20,000,000)	3,000,000
Total other income (expense), net	1,000,000	25,000,000	25,000,000	44,000,000
Income before provision for income taxes	875,000,000	842,000,000	1,742,000,000	1,714,000,000
Provision for income taxes	(231,000,000)	(197,000,000)	(439,000,000)	(410,000,000)
Income (Loss) from Equity Method Investments	(8,000,000)	0	(5,000,000)	4,000,000
Net income	$ 636,000,000	$ 645,000,000	$ 1,298,000,000	$ 1,308,000,000
Basic earnings per share (usd per share)	$ 1.36	$ 1.31	$ 2.76	$ 2.65
Diluted earnings per share (usd per share)	$ 1.36	$ 1.31	$ 2.75	$ 2.65
Weighted average number of common shares outstanding - Basic (shares)	466	492	471	493
Dilutive effect of shares issuable under stock-based compensation plans (shares)	0	0	1	0
Weighted average number of common shares outstanding - Diluted (shares)	466	492	472	493

Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 1,298	$ 1,308
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	284	275
Deferred income taxes	119	9
Stock-based compensation expense	99	90
(Gain) on sale of property and equipment	0	(62)
Other	14	(15)
Changes in operating assets and liabilities, net of effects of businesses acquired:
Trade accounts receivable, current	(274)	(320)
Other current and noncurrent assets	(219)	(60)
Accounts payable	29	(29)
Deferred revenues, current and noncurrent	(20)	(10)
Other current and noncurrent liabilities	(498)	(388)
Net cash provided by operating activities	832	798
Cash flows from investing activities:
Purchases of property and equipment	(175)	(144)
Proceeds from sale of property and equipment	0	70
Purchases of other investments	(51)	(16)
Proceeds from maturity or sale of other investments	51	1
Payments for business combinations, net of cash acquired	(1,334)	0
Net cash (used in) investing activities	(1,509)	(89)
Cash flows from financing activities:
Issuance of common stock under stock-based compensation plans	29	33
Repurchases of common stock	(1,607)	(577)
Repayment of Term Loan borrowings and finance lease obligations	(23)	(21)
Proceeds from borrowings under the revolving credit facility	1,000	0
Repayment of notes outstanding under the revolving credit facility	0	(300)
Dividends paid	(316)	(308)
Net cash (used in) financing activities	(917)	(1,173)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2)	29
(Decrease) in cash, cash equivalents and restricted cash	(1,596)	(435)
Cash, cash equivalents and restricted cash beginning of year	2,634	2,231
Cash and cash equivalents, end of period	$ 1,038	$ 1,796

Consolidated Statements Of Financial Position (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 1,038	$ 1,901
Short-term investments	13	13
Trade accounts receivable, net	4,780	4,439
Other current assets	1,728	1,465
Total current assets	7,559	7,818
Property and equipment, net	981	933
Operating lease assets, net	555	573
Goodwill	8,083	7,106
Intangible assets, net	1,675	1,417
Deferred income tax assets, net	764	967
Long-term investments	106	111
Other noncurrent assets	1,102	1,767
Total assets	20,825	20,692
Current liabilities:
Accounts payable	357	308
Deferred revenue	490	501
Short-term debt	33	33
Operating lease liabilities	145	153
Accrued expenses and other current liabilities	2,439	2,664
Total current liabilities	3,464	3,659
Deferred revenue, noncurrent	31	37
Operating lease liabilities, noncurrent	389	423
Deferred income tax liabilities, net	177	168
Long-term debt	1,527	543
Other noncurrent liabilities	775	847
Total liabilities	6,363	5,677
Commitments and contingencies (See Note 11)
Stockholders’ equity:
Preferred stock, $0.10 par value, 15 shares authorized, none issued	0	0
Class A common stock, $0.01 par value, 1,000 shares authorized, 452 and 479 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	5	5
Additional paid-in capital	11	12
Retained earnings	14,647	15,158
Accumulated other comprehensive income (loss)	(201)	(160)
Total stockholders’ equity	14,462	15,015
Total liabilities and stockholders’ equity	$ 20,825	$ 20,692