Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Trade accounts receivable, net (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Property and equipment, net (USD, millions)

Operating lease assets, net (USD, millions)

Goodwill (USD, millions)

Intangible assets, net (USD, millions)

Deferred income tax assets, net (USD, millions)

Long-term investments (USD, millions)

Other noncurrent assets (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Deferred revenue (USD, millions)

Short-term debt (USD, millions)

Operating lease liabilities (USD, millions)

Accrued expenses and other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Deferred revenue, noncurrent (USD, millions)

Operating lease liabilities, noncurrent (USD, millions)

Deferred income tax liabilities, net (USD, millions)

Long-term debt (USD, millions)

Other noncurrent liabilities (USD, millions)

Total liabilities (USD, millions)

Preferred stock, $ 0.10 par value, 15 shares authorized, none issued (USD, millions)

Class A common stock, $ 0.01 par value, 1,000 shares authorized, 495 and 498 shares issued and outstanding as of December 31, 2024 and 2023, respectively (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

09291abd0693bd16d4ee0848c40993f903d7cb491045129d36f4076feaf1f46b

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?

e43743758701cc7d59e3b0a354ba852a7b80e276d8f67dbf73b4e8f0fecbfb4f

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

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)

5ba73477c196721944422495f5f0dfcaffbb6118b450b3bb19df8712783e0981

Net Income (USD, millions)

Net Cash Provided by Operating Activities (USD, millions)

Purchases of Property and Equipment (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 Notes Outstanding Under the Revolving Credit Facility (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)

10fb7427a06001ee3e89a2a1bbea0e0932d48bff9b5908c4c578c8670c865cd9

e71ded83be7cac3c888f5dd2d7af32fd454e84a797648e828a19932747a1140b

5e83fcf3f39b05941c170f4927b217061574aaa5d43e1505e0e7a1aae06098f3

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

North America

Europe

- United Kingdom

- Continental Europe

- Rest of Europe

Rest of World

Total Revenue

80318b2b4a72f46674fb181d7e82c19ee69ebc997faf960cc38d3f865c193889

4d631a5713ccd2ccb0d198a44b29be5b8e76c5cd7ffdfe80e15fb151fc5fb75f

COGNIZANT TECHNOLOGY SOLUTIONS (CTSH)

Financials