10-KPeriod: FY2025

COGNIZANT TECHNOLOGY SOLUTIONS CORP Annual Report, Year Ended Dec 31, 2025

Filed February 12, 2026For Securities:CTSH

Summary

Cognizant Technology Solutions Corp. (CTSH) reported solid revenue growth of 7.0% for the fiscal year ended December 31, 2025, reaching $21.1 billion, with a notable contribution from its acquisition of Belcan. The company experienced a significant increase in income from operations, up 17.2% year-over-year, demonstrating improved profitability driven by cost efficiencies from its NextGen program and operational optimizations. Despite a one-time, non-cash tax expense of $390 million related to the OBBBA enactment impacting GAAP diluted EPS, adjusted diluted EPS saw a substantial increase of 11.2%. Cognizant is strategically focused on modernizing client technologies and processes, with a strong emphasis on AI capabilities, as indicated by significant investments in upskilling its workforce. The company continues its capital return strategy through dividends and share repurchases, signaling confidence in its ongoing financial performance and future outlook.

Financial Highlights

49 data points
Beta

Revenue

$21.11B

Net Income

$2.23B

10.6% Net Margin

EPS (Diluted)

$4.56

Total Assets

$20.69B

Cash & Equivalents

$1.90B

Free Cash Flow

$2.60B

Financial Statements
Beta
Revenue$21.11B
SG&A Expenses$3.24B
Operating Income$3.39B
Net Income$2.23B
EPS (Basic)$4.57
EPS (Diluted)$4.56
Shares Outstanding (Basic)488.00M
Shares Outstanding (Diluted)489.00M

Key Highlights

  • 1Revenue increased by 7.0% year-over-year to $21.1 billion, boosted by the acquisition of Belcan which contributed 260 basis points to growth.
  • 2Income from operations grew by 17.2% ($497 million) year-over-year, indicating improved operational performance.
  • 3Operating margin expanded by 140 basis points to 16.1% for the year.
  • 4Adjusted Diluted Earnings Per Share (EPS) increased by 11.2% to $5.28, reflecting strong underlying profitability.
  • 5The company upskilled over 330,000 associates on Generative AI (GenAI) through more than 1,000 learning programs.
  • 6Voluntary attrition in Tech Services decreased to 13.9% in 2025 from 15.9% in 2024, suggesting improved talent retention.
  • 7Cognizant maintained its commitment to capital return, paying quarterly cash dividends and continuing its stock repurchase program.

Frequently Asked Questions

Cognizant's revenue growth of 7.0% to $21.1 billion in 2025 was primarily driven by organic growth in its Financial Services and Health Sciences segments, along with a significant contribution from the acquisition of Belcan, which added approximately 260 basis points to the overall revenue growth.

The company achieved significant improvements in profitability through net savings from its NextGen program, operational efficiencies, and the beneficial impact of foreign currency exchange rate movements. These factors, combined with a gain on the sale of property and equipment, helped to increase income from operations by 17.2% and expand the operating margin.

Cognizant is heavily focused on AI, positioning itself as an 'AI builder'. This includes significant investments in developing AI capabilities, upskilling its workforce (over 330,000 associates trained on GenAI), and integrating AI into its client offerings and internal operations to help clients modernize, transform experiences, and stay ahead in an AI-reshaped world.

The enactment of the OBBBA in the United States resulted in a one-time, non-cash income tax expense of $390 million for Cognizant in the third quarter of 2025. This significantly impacted GAAP diluted EPS by $0.80, but this amount was added back for the calculation of Adjusted EPS.