5e83fcf3f39b05941c170f4927b217061574aaa5d43e1505e0e7a1aae06098f3

North America

Europe

- United Kingdom

- Continental Europe

- Rest of Europe

Rest of World

Total Revenue

047953dddb71a71f4dedb17e6d1b3e83013440e0cdb6785111e9e5dd884397cd

Financial Services

Health Sciences

Healthcare

Manufacturing/Retail/Logistics

Other

Products and Resources

Communications, Media and Technology

- Consulting and Technology Services

- Outsourcing Services

- Time and Materials

- Fixed-price

- Transaction or Volume-based

2501fa2f42c9db3cb76de02d905da9796ab29a56ef0d9eb6fe60b81cc8022e08

e71ded83be7cac3c888f5dd2d7af32fd454e84a797648e828a19932747a1140b

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

b952e0b912ed83dc5f9cf5071a79f32ed520e57e2a09de388318eb5a03c9a40e

Days Sales Outstanding (days)

Voluntary Attrition - Tech Services (percentage)

Total employees (count)

Remaining performance obligations (USD millions)

ba5001039394c949a97c938b745ac5118cbec22b4bfae5afcaa74fcc143f9a8c

Net Income (USD, millions)

Depreciation and Amortization (USD, millions)

Stock-based Compensation Expense (USD, millions)

Other, net (USD, millions)

Net Cash Provided by Operating Activities (USD, millions)

Purchases of Property and Equipment (USD, millions)

Purchases of Available-for-Sale Investment Securities (USD, millions)

Proceeds from Maturity of Available-for-Sale Investment Securities (USD, millions)

Purchases of Held-to-Maturity Investment Securities (USD, millions)

Proceeds from Maturity of Held-to-Maturity Investment Securities (USD, millions)

Purchases of Other Investments (USD, millions)

Proceeds from Maturity or Sale of Other Investments (USD, millions)

Proceeds from Sales of Businesses (USD, millions)

Payments for Business Combinations, Net of Cash Acquired (USD, millions)

Net Cash (Used in) Investing Activities (USD, millions)

Issuance of Common Stock Under Stock-Based Compensation Plans (USD, millions)

Repurchases of Common Stock (USD, millions)

Repayment of Term Loan Borrowings and Earnout Obligations and Finance Leases (USD, millions)

Proceeds from Borrowings Under the Revolving Credit Facility (USD, millions)

Repayment of Notes Outstanding Under the Revolving Credit Facility (USD, millions)

Proceeds from Debt Refinancing (USD, millions)

Debt Issuance Costs (USD, millions)

Dividends Paid (USD, millions)

Net Cash (Used in) Financing Activities (USD, millions)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (USD, millions)

(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (USD, millions)

Deferred Income Taxes (USD, millions)

Trade Accounts Receivable (USD, millions)

Other Current and Noncurrent Assets (USD, millions)

Accounts Payable (USD, millions)

Deferred Revenue, Current and Noncurrent (USD, millions)

Other Current and Noncurrent Liabilities (USD, millions)

07f76346108c71ff041e198714a33aac93cbfbf8fa9ae9a72476fa46d8698274

Revenues (USD, millions)

Cost of revenues (USD, millions)

Selling, general and administrative expenses (USD, millions)

Restructuring charges (USD, millions)

Depreciation and amortization expense (USD, millions)

Income from operations (USD, millions)

Other income (expense), net (USD, millions)

Income before provision for income taxes (USD, millions)

Provision for income taxes (USD, millions)

Income (loss) from equity method investments (USD, millions)

Net income (USD, millions)

Diluted earnings per share (USD)

040b24d0a602f1033757e1619a40599d889d1cb5c6fed962263cfa0978b5645d

The operating cash flow in Q1 2024 was significantly impacted by several factors. **First**, a **$360 million payment to Indian tax authorities** related to a 2016 tax matter had a substantial negative effect. **Second**, **higher bonus payouts** that were accrued in the prior year reduced cash flows. **Third**, the company experienced **lower collections of trade accounts receivable**, and **increased tax payments** also contributed to the decline compared to Q1 2023.  **[0001058290-24-000116_ctsh-20240331.htm:31]** **[CTSH_3381915_7]** **[0001058290-24-000115_exhibit9913312024.htm:10]** 

Why is operating cash flow so low in Q1 2024?

The **operating cash flow** surge in **Q2 2024** was driven primarily by **lower income tax payments**—resulting from the mandatory capitalization of research and experimental expenditures for the 2022 tax year, as well as estimated tax payments for the six months ended June 30, 2023—and by **seasonal factors** that typically improve cash flow during this period.  **[0001058290-24-000241_exhibit9936302024.htm:2]** **[CTSH_3395368_6]** 

What drove the operating cash flow surge in Q2 2024?

The drop in full-year operating cash flow in FY 2024 was mainly attributable to a **$360 million payment** made in relation to a dispute with the **India Tax Department (ITD)** in January 2024. This payment contributed significantly to reducing the net cash provided by operating activities from **$2,330 million** in FY 2023 to **$2,124 million** in FY 2024.  **[0001058290-25-000017_ctsh-20241231.htm:60]** **[0001058290-25-000017_ctsh-20241231.htm:90]** 

What factors contributed to the drop in full-year operating cash flow in FY 2024?

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In Q3 2024, the revenue increase was driven by **strong segment performance**, particularly in **Health Sciences** and **Products and Resources**, alongside growth in **Financial Services** and a modest decline in **Communications, Media, and Technology**. Additionally, **geographic contributions**—most notably a significant pickup in **North America**—boosted overall performance. Furthermore, **recent acquisitions** such as Belcan and Thirdera added approximately **200 basis points** to revenue growth, while a favorable **constant currency impact** also played a role in the overall increase.  **[0001058290-24-000325_exhibit9919302024.htm:0]** **[20241030NY44438:10]** **[0001058290-24-000327_ctsh-20240930.htm:31]** 

What factors drove the revenue increase in Q3 2024?

The drop in other income in Q4 2024 was primarily driven by several factors. **Foreign currency exchange losses** increased significantly, rising from **$(1) million** in Q4 2023 to **$(18) million** in Q4 2024. Additionally, there was a decline in **interest income** from **$34 million** to **$28 million**, while **interest expense** increased from **$(11) million** to **$(19) million**. Moreover, the "Other, net" category shifted from a positive **$3 million** in Q4 2023 to a negative **$(2) million** in Q4 2024. These changes collectively resulted in an overall drop of **$36 million** in other income (expense), net for Q4 2024.  **[20250205NY12649:8]** **[0001058290-25-000017_ctsh-20241231.htm:56]** 

What caused the drop in other income in Q4 2024?

In Q3 2024, the EPS boost was driven by **multiple factors**. **Revenue growth** increased by **3.0% year-over-year** to **$5.04 billion**, and the **GAAP operating margin** improved from **14.0% to 14.6%**.  **[0001058290-24-000325_exhibit9919302024.htm:0]** **[0001058290-24-000327_ctsh-20240930.htm:31]**  The company also maintained strong **cost discipline**, which helped manage expenses amid investments and restructuring charges.  **[CTSH_3404767_1]** **[CTSH_3404767_7]**  Additionally, **recent acquisitions** contributed approximately **200 basis points** to the revenue growth, supporting the EPS increase.  **[0001058290-24-000325_exhibit9919302024.htm:0]** **[0001058290-24-000327_ctsh-20240930.htm:31]**  Finally, investments in **AI-driven platforms** and overall productivity improvements further bolstered the EPS performance.  **[CTSH_3404767_1]** **[20241030NY44438:0]** 

What contributed to the EPS boost in Q3 2024?

The reduction in restructuring charges in **Q3 2024** was primarily driven by a substantial decrease in **facility exit costs**, which fell from **$55 million** in Q3 2023 to **$4 million** in Q3 2024.  **[20241030NY44438:9]** **[0001058290-24-000325_exhibit9919302024.htm:9]**  Although **employee separation costs** increased from **$15 million** to **$29 million**, the overall effect was a **54.2% reduction** in the total restructuring charges—from **$72 million** to **$33 million**—further supported by the company completing or scaling down major restructuring activities under its **NextGen program**.  **[0001058290-24-000327_ctsh-20240930.htm:31]** **[0001058290-24-000327_ctsh-20240930.htm:6]** 

What led to the reduction in restructuring charges in Q3 2024?

In Q4 **2024**, the net income decline was primarily driven by several factors. **Operating expenses increased** significantly, as the cost of revenues and selling, general, and administrative expenses both rose compared to the prior year. Furthermore, **restructuring charges** increased to **$49 million** from **$40 million**, and the company experienced **foreign currency exchange losses** of **$18 million** (up from **$1 million**), which further negatively impacted net income. An increase in the **tax provision** also contributed to the slight overall decrease of **$12 million year-over-year** despite some revenue growth and an improved operating margin.  **[20250205NY12649:0]** **[20250205NY12649:8]** **[CTSH_3414561_6]** 

Why did net income decline in Q4 2024?

ce4ef3589554a7528684b4f3556f70357c45ce01b3920a6143c1368e568558e1

Cognizant Technology Solutions Corp (CTSH)

Financials