Cognizant Reports Fourth Quarter and Full-Year 2025 Results

Exceeds fourth quarter revenue guidance and full year guidance across revenue, adjusted operating margin, and adjusted EPS

TEANECK, N.J., Feb. 4, 2026 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its fourth quarter and full-year 2025 financial results.

"I am deeply grateful to our over 350,000 employees who helped make 2025 a defining year for Cognizant in which we put our AI builder strategy in motion and returned to the 'winner's circle' two years ahead of the target we set at our Investor Day," said Ravi Kumar S, Chief Executive Officer. "We have invested in our talent, strengthened our partnership ecosystem and advanced our AI platforms to help clients scale AI across the enterprise. These investments helped us sign 28 large deals in 2025 with large deal TCV growth of nearly 50% year-over-year. We are confident that the foundation we built over the last three years positions us well to carry this momentum in the years ahead."

$ in millions, except per share data

Q4 2025

Q4 2024

2025

2024

Revenue

$5,333

$5,082

$21,108

$19,736

Y/Y Change

4.9 %

6.8 %

7.0 %

2.0 %

Y/Y Change CC 1

3.8 %

6.7 %

6.4 %

1.9 %

GAAP Operating Margin

16.0 %

14.8 %

16.1 %

14.7 %

Adjusted Operating Margin 1

16.0 %

15.7 %

15.8 %

15.3 %

GAAP Diluted EPS

$1.34

$1.10

$4.56

$4.51

Adjusted Diluted EPS 1

$1.35

$1.21

$5.28

$4.75

Operating cash flow conversion (Operating cash flow / net income)

129 %

95 %

Free cash flow conversion (Free cash flow 1 / net income)

120 %

82 %

Our acquisition of Belcan contributed approximately 260 basis points to revenue growth for the full year ended December 31, 2025.

GAAP Diluted EPS includes a one-time non-cash income tax charge that negatively impacted full year 2025 by $0.80.

"In 2025, we outperformed the high end of our guidance ranges, combining top-tier revenue growth with 50 basis points of expanded adjusted operating margin and 11% adjusted EPS growth," said Jatin Dalal, Chief Financial Officer. "Our operational rigor allowed us to maintain a robust free cash flow conversion of more than 100% of net income and return $2 billion to shareholders. Our initial 2026 guidance reflects sustained momentum, backed by our commitment to advancing our strategic investments aimed at accelerating our AI-led growth strategy."

Bookings

On a trailing-twelve-month basis, bookings increased 5% year-over-year to $28.4 billion, which represented a book-to-bill of approximately 1.3x. Bookings in the fourth quarter increased 9% year-over-year. Fourth quarter bookings included twelve large deals, which are deals with total contract value of $100 million or greater, of which two were mega deals, or deals with total contract value of $500 million or greater.

Employee Metrics

On a trailing-twelve months basis, Voluntary Attrition - Tech Services was 13.9% for the period ended December 31, 2025, as compared to 14.5% and 15.9% for the periods ended September 30, 2025 and December 31, 2024, respectively. Total headcount as of December 31, 2025 was 351,600, an increase of 1,800 from September 30, 2025 and 14,800 from December 31, 2024.

Return of Capital to Shareholders

The Company repurchased 4.3 million shares for $325 million during the fourth quarter under its share repurchase program. For the full-year, the company repurchased 17.4 million shares for $1.3 billion under the program. As of December 31, 2025, there was $1.9 billion remaining under the share repurchase authorization. In February 2026, the Company declared a quarterly cash dividend of $0.33 per share for shareholders of record on February 18, 2026. This dividend will be payable on February 26, 2026.

First Quarter and Full-Year 2026 Guidance 2

(all growth rates year-over-year)

1 Constant currency ("CC") revenue growth, Adjusted Operating Margin, Adjusted Diluted Earnings Per Share ("Adjusted Diluted EPS" or "Adjusted EPS") and free cash flow are not measures of financial performance prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). A full reconciliation of Adjusted Operating Margin guidance to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts. See "About Non-GAAP Financial Measures and Performance Metrics" for more information and a partial reconciliation to the most directly comparable GAAP financial measure at the end of this release.

2 Guidance as of February 4, 2026

3 A full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts. See "About Non-GAAP Financial Measures and Performance Metrics" for more information and a partial reconciliation to the most directly comparable GAAP financial measures at the end of this release.

Select Company, Client and Partnership Announcements

Cognizant is building a portfolio of capabilities combined with deep domain expertise to harness and advance an AI-led future. Cognizant's progress has been accelerated through client agreements, platform enhancements, and partnerships. Recent announcements include:

Client Announcements

Platform Enhancements and Partnerships

Select Company Recognition, Announcements, and Analyst Ratings

4 Gartner, Magic Quadrant for Custom Software Development Services, 1 December 2025. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner's business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.

GARTNER and MAGIC QUADRANT are trademarks of Gartner, Inc. and its affiliates.

Conference Call

Cognizant will host a conference call on February 4, 2026, at 8:30 a.m. (Eastern) to discuss the Company's fourth quarter and full year 2025 results. To listen to the conference call, please dial (877) 810-9510 (domestic) or +1 (201) 493-6778 (international) and provide the following conference passcode: "Cognizant Call."

The conference call will also be available live on the Investor Relations section of the Cognizant website at http://investors.cognizant.com. An earnings supplement will also be available on the Cognizant website at the time of the conference call. For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or +1 (201) 612-7415 (internationally) and enter 13757577 beginning two hours after the end of the call until 11:59 p.m. (Eastern) on Wednesday, February 18, 2026. The replay will also be available at Cognizant's website www.cognizant.com for 60 days following the call.

About Cognizant

Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, strategic partnerships and collaborations, competitive position and opportunities in the marketplace, investment in and growth of our business, the pace and magnitude of change and client needs related to generative AI, the effectiveness of our recruiting and talent efforts and related costs, labor market trends, the anticipated amount of capital to be returned to shareholders and our anticipated financial performance and other statements regarding matters that are not historical facts. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, our ability to successfully use AI-based technologies and the impact those technologies may have on the demand and terms for our services, the competitive marketplace for talent and its impact on employee recruitment and retention, legal, reputational and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration, trade and taxes, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

About Non-GAAP Financial Measures and Performance Metrics

Non-GAAP Financial Measures

To supplement our financial results presented in accordance with GAAP, this press release includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Operating Margin, Adjusted Net Income, Adjusted Diluted EPS (or Adjusted EPS), free cash flow, net cash and constant currency revenue growth. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of our non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.

Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations exclude unusual items, such as the gain on sale of property and equipment and NextGen charges. Our non-GAAP financial measures Adjusted Net Income and Adjusted Diluted EPS exclude unusual items, such as the one-time income tax expense related to the enactment of the OBBBA, the gain on sale of property and equipment and NextGen charges, net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments. The income tax impact of each item excluded from Adjusted Net Income and Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Free cash flow is defined as cash flows from operating activities plus proceeds from sale of property and equipment, net of purchases of property and equipment. Net cash is defined as cash and cash equivalents and short-term investments less short-term and long-term debt. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period's foreign currency exchange rates measured against the comparative period's reported revenues.

Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced transparency into our operating results. For our internal management reporting and budgeting purposes, we use various GAAP and non-GAAP financial measures for financial and operational decision-making, to evaluate period-to-period comparisons, to determine portions of the compensation for our executive officers and for making comparisons of our operating results to those of our competitors. Accordingly, we believe that the presentation of our non-GAAP measures, which exclude certain costs, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations.

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and may exclude costs that are recurring such as our net non-operating foreign currency exchange gains or losses. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from our non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

Performance Metrics

Bookings are defined as total contract value (or TCV) of new contracts, including new contract sales as well as renewals and expansions of existing contracts. Bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large contracts. Our book-to-bill ratio is defined as bookings for the trailing twelve months divided by revenue for the same period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. The extent and timing of conversion of bookings to revenues may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and contract modifications, including terminations, over the lifetime of a contract. The majority of our contracts are terminable by the client on short notice often without penalty, and some without notice. We do not update our bookings for subsequent terminations, reductions or foreign currency exchange rate fluctuations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenues. However, management believes that it is a key indicator of potential future revenues and provides a useful indicator of the volume of our business over time. Large deals and mega deals are defined as deals with a total contract value of $100 million or greater and $500 million or greater, respectively.

Investor Relations Contact:

Media Contact:

Tyler Scott

Jeff DeMarrais

SVP, Investor Relations

SVP, Corporate Communications

+1 551-220-8246

+1 475-223-2298

[email protected]

- tables to follow -

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in millions, except per share data)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenues

$ 5,333

$ 5,082

$ 21,108

$ 19,736

Operating expenses:

Cost of revenues (exclusive of depreciation and amortization expense shown

separately below)

3,534

3,297

13,991

12,958

Selling, general and administrative expenses

806

844

3,240

3,223

Restructuring charges

—

134

Depreciation and amortization expense

140

141

550

529

(Gain) on sale of property and equipment

—

(62)

—

Income from operations

853

751

3,389

2,892

Other income (expense), net:

Interest income

105

119

Interest expense

(8)

(19)

(37)

(54)

Foreign currency exchange gains (losses), net

(18)

(19)

Other, net

(2)

—

Total other income (expense), net

(11)

Income before provision for income taxes

878

740

3,479

2,938

Provision for income taxes

(235)

(199)

(1,258)

(713)

Income (loss) from equity method investment

Net income

$ 648

$ 546

$ 2,230

$ 2,240

Basic earnings per share

$ 1.35

$ 1.10

$ 4.57

$ 4.52

Diluted earnings per share

$ 1.34

$ 1.10

$ 4.56

$ 4.51

Weighted average number of common shares outstanding - Basic

481

495

488

496

Dilutive effect of shares issuable under stock-based compensation plans

Weighted average number of common shares outstanding - Diluted

482

496

489

497

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(in millions, except par values)

December 31,

2025

December 31,

2024

Assets

Current assets:

Cash and cash equivalents

$ 1,901

$ 2,231

Short-term investments

Trade accounts receivable, net

4,439

4,059

Other current assets

2,198

1,202

Total current assets

8,551

7,504

Property and equipment, net

933

994

Operating lease assets, net

573

552

Goodwill

7,106

6,953

Intangible assets, net

1,417

1,599

Deferred income tax assets, net

967

1,248

Long-term investments

111

Other noncurrent assets

1,034

1,026

Total assets

$ 20,692

$ 19,966

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$ 308

$ 340

Deferred revenue

501

450

Short-term debt

Operating lease liabilities

153

152

Accrued expenses and other current liabilities

2,664

2,610

Total current liabilities

3,659

3,585

Deferred revenue, noncurrent

Operating lease liabilities, noncurrent

423

420

Deferred income tax liabilities, net

168

154

Long-term debt

543

875

Other noncurrent liabilities

847

494

Total liabilities

5,677

5,558

Stockholders' equity:

Preferred stock, $0.10 par value, 15 shares authorized, none issued

—

Class A common stock, $0.01 par value, 1,000 shares authorized, 479 and 495 shares issued

and outstanding as of December 31, 2025 and 2024, respectively

Additional paid-in capital

Retained earnings

15,158

14,686

Accumulated other comprehensive income (loss)

(160)

(296)

Total stockholders' equity

15,015

14,408

Total liabilities and stockholders' equity

$ 20,692

$ 19,966

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

Reconciliations of Non-GAAP Financial Measures

(Unaudited)

(dollars in millions, except per share amounts)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

Guidance

2025

2024

2025

2024

Full Year 2026 (1)

GAAP income from operations

$ 853

$ 751

$ 3,389

$ 2,892

(Gain) on sale of property and equipment (a)

—

(62)

—

NextGen charges (b)

—

134

Adjusted Income From Operations

$ 853

$ 800

$ 3,327

$ 3,026

GAAP operating margin

16.0 %

14.8 %

16.1 %

14.7 %

(Gain) on sale of property and equipment

—

(0.3)

—

NextGen charges

—

0.9

—

0.6

—

Adjusted Operating Margin

16.0 %

15.7 %

15.8 %

15.3 %

15.9% - 16.1%

GAAP net income

$ 648

$ 546

$ 2,230

$ 2,240

Effect of adjustments to income from operations, pre-tax

—

(62)

134

Non-operating foreign currency exchange (gains) losses,

pre-tax (c)

(5)

(18)

Tax effect of above adjustments (d)

(12)

(30)

One-time income tax expense related to the enactment of the

OBBBA (e)

—

390

—

Adjusted Net Income

$ 651

$ 601

$ 2,582

$ 2,363

GAAP diluted earnings per share

$ 1.34

$ 1.10

$ 4.56

$ 4.51

Effect of adjustments to income from operations, pre-tax

—

0.10

(0.13)

0.27

—

Non-operating foreign currency exchange (gains) losses,

pre-tax (c)

(0.01)

0.04

(0.04)

0.04

(c)

Tax effect of above adjustments (d)

0.02

(0.03)

0.09

(0.07)

(c)

One-time income tax expense related to the enactment of the

OBBBA (e)

—

0.80

—

Adjusted Diluted Earnings Per Share

$ 1.35

$ 1.21

$ 5.28

$ 4.75

$5.56 - $5.70

(1) A full reconciliation of Adjusted Operating Margin and Adjusted Diluted Earnings Per Share guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to unusual items, net non-operating foreign currency exchange gains or losses and the tax effects of these adjustments, and such adjustments may be significant.

Notes:

(a)

During the three months ended March 31, 2025, we realized a gain on the sale of an office complex in India, which was reported in "(Gain) on sale of property and equipment" on our unaudited consolidated statement of operations.

(b)

NextGen charges for the three months ended December 31, 2024 include $30 million of employee separation costs, $7 million of facility exit costs and $12 million of third party and other costs. NextGen charges for the year ended December 31, 2024 include $85 million of employee separation costs, $36 million of facility exit costs and $13 million of third party and other costs. The program concluded on December 31, 2024. The costs related to the NextGen program are reported in "Restructuring charges" in our unaudited consolidated statements of operations.

(c)

Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in "Foreign currency exchange gains (losses), net" in our unaudited consolidated statements of operations. Non-operating foreign currency exchange gains and losses are subject to high variability and low visibility and therefore cannot be provided on a forward-looking basis without unreasonable efforts.

(d)

Presented below are the tax impacts of our non-GAAP adjustment to pre-tax income for the:

(in millions)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Non-GAAP income tax benefit (expense) related to:

Gain on sale of property and equipment

$ —

$ (9)

$ —

NextGen charges

—

Foreign currency exchange gains and losses

(8)

(1)

(33)

(4)

The effective tax rate related to non-operating foreign currency exchange gains and losses varies depending on the jurisdictions in which such income and expenses are generated and the statutory rates applicable in those jurisdictions. As such, the income tax effect of non-operating foreign currency exchange gains and losses shown in the above table may not appear proportionate to the net pre-tax foreign currency exchange gains and losses reported in our unaudited consolidated statements of operations.

(e)

In July 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States, which, among other provisions, repealed the requirement to capitalize U.S. research and experimental ("R&E") costs. As a result, we do not believe it is more likely than not that we will realize our deferred tax asset of $390 million related to R&E costs capitalized outside the United States. These amounts would have otherwise been available to offset certain future U.S. taxes on our non-U.S. earnings, which, as a result of this repeal, we no longer project to be applicable to us. Therefore, in the third quarter of 2025, we recorded a one-time, non-cash income tax expense of $390 million.

Reconciliations of Net Cash

(Unaudited)

(in millions)

December 31, 2025

December 31, 2024

Cash and cash equivalents (a)

$ 1,901

$ 2,231

Short-term investments

Less:

Short-term debt

Long-term debt

543

875

Net cash (a)

$ 1,338

$ 1,335

Notes:

(a)

Cash and cash equivalents as of December 31, 2025 excludes $733 million of restricted cash related to our acquisition of 3Cloud which was reported in "Other current assets" on our unaudited consolidated statement of financial position.

The above tables serve to reconcile the Non-GAAP financial measures to the most directly comparable GAAP measures. Refer to the "About Non-GAAP Financial Measures and Performance Metrics" section of our press release for further information on the use of these Non-GAAP measures.

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

Revenue by Business Segment and Geography

(Unaudited)

(dollars in millions)

Three Months Ended December 31, 2025

Year over Year

% of total

% Change

Constant

Currency

% Change (a)

Revenues by Segment:

Health Sciences

$ 1,621

30.4 %

5.2 %

4.2 %

Financial Services

1,586

29.7 %

10.5 %

9.3 %

Products and Resources

1,318

24.7 %

1.8 %

0.3 %

Communications, Media and Technology

808

15.2 %

(0.4) %

(1.2) %

Total Revenues

$ 5,333

4.9 %

3.8 %

Revenues by Geography:

North America

$ 3,986

74.7 %

4.3 %

4.2 %

United Kingdom

480

9.0 %

7.9 %

3.8 %

Continental Europe

538

10.1 %

8.9 %

0.3 %

Europe - Total

1,018

19.1 %

8.4 %

2.0 %

Rest of World

329

6.2 %

2.5 %

3.6 %

Total Revenues

$ 5,333

4.9 %

3.8 %

Twelve Months Ended December 31, 2025

Year over Year

% of total

% Change

Constant

Currency

% Change (a)

Revenues by Segment:

Health Sciences

$ 6,347

30.1 %

7.0 %

6.4 %

Financial Services

6,173

29.2 %

7.3 %

6.8 %

Products and Resources (b)

5,285

25.0 %

10.5 %

9.7 %

Communications, Media and Technology

3,303

15.7 %

1.0 %

0.7 %

Total Revenues (b)

$ 21,108

7.0 %

6.4 %

Revenues by Geography:

North America (b)

$ 15,780

74.8 %

7.4 %

United Kingdom

1,922

9.1 %

5.2 %

2.1 %

Continental Europe

2,090

9.9 %

8.2 %

3.6 %

Europe - Total

4,012

19.0 %

6.7 %

2.9 %

Rest of World

1,316

6.2 %

2.9 %

4.7 %

Total Revenues (b)

$ 21,108

7.0 %

6.4 %

Notes:

(a)

Constant currency revenue growth is not a measure of financial performance prepared in accordance with GAAP. See "About Non-GAAP Financial Measures and Performance Metrics" section of our press release for further information.

(b)

For the year ended December 31, 2025, our acquisition of Belcan contributed approximately 260 basis points to overall revenue growth, respectively, primarily in North America and to a lesser extent in the United Kingdom. Additionally, Belcan contributed approximately 960 basis points of growth to our Products and Resources segment for the year ended December 31, 2025.

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Cash flows from operating activities:

Net income

$ 648

$ 546

$ 2,230

$ 2,240

Adjustments for non-cash income and expenses

991

394

Changes in operating assets and liabilities, net of effects of businesses acquired

116

334

(338)

(510)

Net cash provided by operating activities

858

920

2,883

2,124

Cash flows from investing activities:

Purchases of property and equipment

(77)

(83)

(288)

(297)

Proceeds from sale of property and equipment

—

Net maturities (purchases) of investments

(12)

266

Payments for business combinations, net of cash acquired

—

(1,615)

Net cash (used in) investing activities

(75)

(79)

(230)

(1,646)

Cash flows from financing activities:

Issuance of common stock under stock-based compensation plans

Repurchases of common stock

(338)

(154)

(1,378)

(605)

Net change in term loan borrowings and earnout obligations and finance leases

(10)

(12)

(42)

(73)

Proceeds from borrowing under the revolving credit facility

—

600

Repayment of notes outstanding under the revolving credit facility

—

(300)

Dividends paid

(151)

(150)

(610)

(600)

Net cash (used in) by financing activities

(487)

(602)

(2,272)

(915)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash

equivalents

(3)

(21)

(49)

Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

293

218

403

(486)

Cash, cash equivalents and restricted cash and cash equivalents, beginning of period

2,341

2,013

2,231

2,717

Cash, cash equivalents and restricted cash, end of period

$ 2,634

$ 2,231

$ 2,634

$ 2,231

SUPPLEMENTAL CASH FLOW INFORMATION

(in millions)

Three Months Ended

December 31,

Stock Repurchases under Board of Directors' authorized stock repurchase program:

2025

2024

Number of shares repurchased

4.3

1.8

Remaining authorized balance as of December 31, 2025

$ 1,918

Reconciliation of Free Cash Flow Non-GAAP Financial Measure

(in millions)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Net cash provided by operating activities

$ 858

$ 920

$ 2,883

$ 2,124

Purchases of property and equipment

(77)

(83)

(288)

(297)

Proceeds from sale of property and equipment

—

Free cash flow

$ 781

$ 837

$ 2,665

$ 1,827

SOURCE Cognizant Technology Solutions Corporation