Cognizant Technology Solutions Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Cognizant Technology Solutions Corp. has filed its 2023 10-K annual report detailing its financial performance and operations.</b>

AI Summary

COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) filed a Annual Report (10-K) with the SEC on February 14, 2024. Cognizant Technology Solutions Corp. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 300 Frank W. Burr Blvd., Teaneck, NJ. The filing includes financial data for the fiscal years 2023, 2022, and 2021. Cognizant Technology Solutions Corp. is classified under SIC code 7371 for Services-Computer Programming Services.

Why It Matters

For investors and stakeholders tracking COGNIZANT TECHNOLOGY SOLUTIONS CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Cognizant's financial health, operational performance, and strategic positioning for the fiscal year 2023, which is crucial for investors to assess the company's trajectory. The detailed financial statements and risk factors within the report offer insights into the company's ability to navigate the competitive IT services landscape and manage potential challenges.

Risk Assessment

Risk Level: medium — COGNIZANT TECHNOLOGY SOLUTIONS CORP shows moderate risk based on this filing. The company operates in the highly competitive IT services industry, which is subject to rapid technological changes and evolving client demands, posing a medium risk to its sustained growth and profitability.

Analyst Insight

Investors should review the detailed financial statements and management's discussion and analysis in the 10-K to understand Cognizant's performance drivers and future outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-14 — Filing Date (Date of submission)
• 2023 — Fiscal Year (Year covered by the report)
• 2022 — Prior Fiscal Year (Comparative financial data)
• 2021 — Prior Fiscal Year (Comparative financial data)

Key Players & Entities

• COGNIZANT TECHNOLOGY SOLUTIONS CORP (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-14 (date) — Filing date
• 300 FRANK W. BURR BLVD., STE. 36, 6 FL. (address) — Business address
• TEANECK (location) — City for business address
• NJ (location) — State for business address
• 07666 (postal_code) — ZIP code for business address
• 7371 (sic_code) — Standard Industrial Classification code

FAQ

Industry Context

Cognizant operates within the global IT services industry, providing a range of services including digital, technology, consulting, and operations. This sector is characterized by intense competition and rapid technological advancements.

Regulatory Implications

As a publicly traded company in the United States, Cognizant Technology Solutions Corp. is subject to the regulations of the Securities and Exchange Commission (SEC), including the requirement to file annual reports on Form 10-K.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and cash flow.
2. Review the risk factors section for potential challenges and management's mitigation strategies.
3. Assess the company's strategic initiatives and outlook for the upcoming fiscal year.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-14: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.01 — hich registered Class A Common Stock, $0.01 par value per share CTSH The Nasdaq Sto
• $65.28 — reg istrant on June 30, 2023, base d on $65.28 per share, the last reported sale price

Filing Documents

• ctsh-20231231.htm (10-K) — 2749KB
• ctshexhibit21112312023.htm (EX-21.1) — 95KB
• ctshexhibit23112312023.htm (EX-23.1) — 3KB
• ctshexhibit31112312023.htm (EX-31.1) — 11KB
• ctshexhibit31212312023.htm (EX-31.2) — 11KB
• ctshexhibit32112312023.htm (EX-32.1) — 6KB
• ctshexhibit32212312023.htm (EX-32.2) — 6KB
• ctshexhibit97112312023.htm (EX-97.1) — 14KB
• ctsh-20231231_g1.jpg (GRAPHIC) — 93KB
• ctsh-20231231_g2.jpg (GRAPHIC) — 50KB
• ctsh-20231231_g3.jpg (GRAPHIC) — 142KB
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• ctsh-20231231_g19.jpg (GRAPHIC) — 16KB
• ctsh-20231231_g20.jpg (GRAPHIC) — 16KB
• ctsh-20231231_g21.jpg (GRAPHIC) — 29KB
• 0001058290-24-000017.txt (&nbsp;) — 15785KB
• ctsh-20231231.xsd (EX-101.SCH) — 76KB
• ctsh-20231231_cal.xml (EX-101.CAL) — 107KB
• ctsh-20231231_def.xml (EX-101.DEF) — 465KB
• ctsh-20231231_lab.xml (EX-101.LAB) — 1079KB
• ctsh-20231231_pre.xml (EX-101.PRE) — 782KB
• ctsh-20231231_htm.xml (XML) — 2593KB

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS 3 PART I 5 1. Business 5 1A. Risk Factors 14 1B. Unresolved Staff Comments 23 1C. Cybersecurity 23 2. Properties 25 3. Legal Proceedings 25 4. Mine Safety Disclosures 25 PART II 26 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 6. [Reserved] 27 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 28 7A. Quantitative and Qualitative Disclosures About Market Risk 41 8. Financial Statements and Supplementary Data 42 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 42 9A. Controls and Procedures 42 9B. Other Information 43 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 43 PART III 44 10. Directors, Executive Officers and Corporate Governance 44 11. Executive Compensation 44 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 44 13. Certain Relationships and Related Transactions, and Director Independence 44 14. Principal Accountant Fees and Services 44 PART IV 45 15. Exhibits, Financial Statements Schedules 45 16. Form 10-K Summary 48

SIGNATURES

SIGNATURES 49 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE F-1 GLOSSARY Defined Term Definition 10b5-1 Plan Trading plan adopted pursuant to Rule 10b5-1 under the Exchange Act 2009 Incentive Plan Cognizant Technology Solutions Corporation Amended and Restated 2009 Incentive Compensation Plan 2017 Incentive Plan Cognizant Technology Solutions Corporation 2017 Incentive Award Plan 2023 Incentive Plan Cognizant Technology Solutions Corporation 2023 Incentive Award Plan Adjusted Diluted EPS Adjusted diluted earnings per share AI Artificial Intelligence APA Advance Pricing Agreement ASC Accounting Standards Codification AustinCSI Austin CSI, LLC CC Constant Currency CE Continental Europe CEO Chief Executive Officer CFO Chief Financial Officer CIO Chief Information Officer CITA Commissioner of Income Tax (Appeals) in India CMT Communications, Media and Technology CODM Chief Operating Decision Maker COVID-19 The novel coronavirus disease CPI Consumer Price Index Credit Agreement Credit agreement with a commercial bank syndicate dated October 6, 2022 CSO Chief Security Officer CTS India Our principal operating subsidiary in India D&I Diversity and Inclusion Devbridge Devbridge Group LLC DevOps Agile relationship between development and IT operations DOJ United States Department of Justice DPDP Digital Personal Data Protection Act, 2023 DSO Days Sales Outstanding DTSA Defend Trade Secrets Act EPS Earnings Per Share ESG Environmental, social and corporate governance ESG Mobility ESG Mobility GmbH EU European Union EVP Executive Vice President Exchange Act Securities Exchange Act of 1934, as amended Executive Committee Cognizant's Chief Executive Officer and his key direct reports FCPA Foreign Corrupt Practices Act FS Financial Services GAAP Generally Accepted Accounting Principles in the United States of America GenAI Generative Artificial Intelligence High Court Madras,

Forward Looking Statements

Forward Looking Statements The statements contained in this Annual Report on Form 10-K that are not historical facts are forward-looking statements (within the meaning of Section 21E of the Exchange Act) that involve risks and uncertainties. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believe," "expect," "may," "could," "would," "plan," "intend," "estimate," "predict," "potential," "continue," "should" or "anticipate" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. From time to time, we or our representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in various filings made by us with the SEC, in press releases or in oral statements made by or with the approval of one of our authorized executive officers. These forwar d-looking statements, such as statements regarding our anticipated future revenues, operating margin, earnings, capital expenditures, impacts to our business, financial results and financial condition as a result of the competitive marketplace for talent and future attrition trends, anticipated effective income tax rate and income tax expense, liquidity, financing strategy, access to capital, capital return strategy, investment strategies, cost management, plans and objectives, including those related to the NextGen program, investment in our business, potential acquisitions, industry trends, client behaviors and trends, the outcome of and costs associated with regulatory and litigation matters, the appropriateness of the accrual related to the India Defined Contribution Obligation and other statements regarding matters that are not historical facts, are based on our current expectations, estimates and projections, management's beliefs and certain assumptions made by management, many of which, by th

Business

Item 1. Business Overview Cognizant is one of the world's leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients. We help clients modernize technology, reimagine processes and transform experiences so they can stay ahead in a fast-changing world. We provide industry expertise and close client collaboration, combining critical perspective with a flexible engagement style. We tailor our services and solutions to specific industries with an integrated global delivery model that employs client service and delivery teams based at client locations and dedicated global and regional delivery centers. Our collaborative services include digital services and solutions, consulting, application development, systems integration, quality engineering and assurance, application maintenance, infrastructure and security as well as business process services and automation. Digital services continue to be an important part of our portfolio, aligning with our clients' focus on becoming data-enabled, customer-centric and differentiated businesses. Our purpose, vision and values are central to Cognizant's strategic approach. In order to achieve this vision and support our clients, we are focusing our business on six strategic initiatives to simplify our operations, become an employer of choice and accelerate growth. These strategic initiatives include: Growing in select industries - investing in prioritized industries to drive differentiation across our value chain; Expanding internationally - growing by prioritizing strategic growth accounts; Building large deal capabilities - enhancing creative deal generation with the right solutions, deal modeling and governance; Capturing the AI opportunity - protecting and expanding in target areas while improving efficiency; Delivering our talent strategy - embedding our cultural values and building a future-relevant talent model; and Continuing to implement our IT roadmap

View Full Filing

View this 10-K filing on SEC EDGAR