Cognizant Technology Solutions Corp. Files 10-Q for Q1 2024

TL;DR

<b>Cognizant Technology Solutions Corp. has filed its Q1 2024 10-Q report, detailing financial performance and operational data.</b>

AI Summary

COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Cognizant Technology Solutions Corp. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal executive offices are located at 300 Frank W. Burr Blvd., Teaneck, NJ. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. The SIC code for Cognizant Technology Solutions Corp. is 7371 (Services-Computer Programming Services).

Why It Matters

For investors and stakeholders tracking COGNIZANT TECHNOLOGY SOLUTIONS CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial results and operational details for Cognizant, crucial for assessing recent performance and future outlook. The detailed segment and geographic data within the filing allows for a granular understanding of where Cognizant is generating revenue and its performance across different markets.

Risk Assessment

Risk Level: low — COGNIZANT TECHNOLOGY SOLUTIONS CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical reporting.

Analyst Insight

Monitor future earnings calls and subsequent filings for management's commentary on the Q1 2024 performance and forward-looking guidance.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-02 — Filing Date (Date the report was filed)
• 7371 — SIC Code (Services-Computer Programming Services)
• 201-801-0233 — Business Phone (Contact number for the company)

Key Players & Entities

• COGNIZANT TECHNOLOGY SOLUTIONS CORP (company) — Filer name
• CTSH (company) — Ticker symbol
• 201 (dollar_amount) — Business phone number prefix
• 07666 (dollar_amount) — ZIP code for business and mailing address
• 2024-03-31 (date) — Conformed period of report
• 2024-05-02 (date) — Filed as of date
• 7371 (dollar_amount) — Standard Industrial Classification code
• 2024 Q1 (date) — Reporting period

FAQ

Industry Context

Cognizant Technology Solutions Corp. operates within the IT services and consulting industry, providing a range of services including digital, technology, consulting, and operations.

Regulatory Implications

This filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit quarterly reports (Form 10-Q) to the SEC.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and management's discussion and analysis.
2. Compare Q1 2024 results with prior periods (Q1 2023, Q4 2023) to identify trends.
3. Analyze segment and geographic revenue breakdowns for insights into business unit performance.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for fiscal year 2024, providing the initial quarterly financial update of the year.

Key Financial Figures

• $0.01 — hich registered Class A Common Stock, $0.01 par value per share CTSH The Nasdaq Sto

Filing Documents

• ctsh-20240331.htm (10-Q) — 1404KB
• ctshexhibit3113312024.htm (EX-31.1) — 10KB
• ctshexhibit3123312024.htm (EX-31.2) — 10KB
• ctshexhibit3213312024.htm (EX-32.1) — 7KB
• ctshexhibit3223312024.htm (EX-32.2) — 7KB
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• ctsh-20240331_g18.jpg (GRAPHIC) — 27KB
• 0001058290-24-000116.txt (&nbsp;) — 8596KB
• ctsh-20240331.xsd (EX-101.SCH) — 48KB
• ctsh-20240331_cal.xml (EX-101.CAL) — 70KB
• ctsh-20240331_def.xml (EX-101.DEF) — 285KB
• ctsh-20240331_lab.xml (EX-101.LAB) — 613KB
• ctsh-20240331_pre.xml (EX-101.PRE) — 469KB
• ctsh-20240331_htm.xml (XML) — 1267KB

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) 4 Consolidated Statements of Financial Position (Unaudited) as of March 31, 2024 and December 31, 2023 4 Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 34

OTHER INFORMATION

PART II. OTHER INFORMATION 35

Legal Proceedings

Item 1. Legal Proceedings 35

Risk Factors

Item 1A. Risk Factors 35

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35

Other Information

Item 5. Other Information 35

Exhibits

Item 6. Exhibits 36

SIGNATURES

SIGNATURES 37 Table of Contents GLOSSARY Defined Term Definition 10b5-1 Plan Trading plan adopted pursuant to Rule 10b5-1 of the Exchange Act Adjusted Diluted EPS Adjusted diluted earnings per share AI Artificial intelligence ASC Accounting Standards Codification CC Constant Currency CE Continental Europe CITA Commissioner of Income Tax (Appeals) in India CMT Communications, Media and Technology CODM Chief Operating Decision Maker Credit Agreement Credit agreement with a commercial bank syndicate dated October 6, 2022 CTS India Our principal operating subsidiary in India DOJ United States Department of Justice DSO Days Sales Outstanding DTSA Defend Trade Secrets Act EPS Earnings per share EU European Union Exchange Act Securities Exchange Act of 1934, as amended FS Financial Services GAAP Generally Accepted Accounting Principles in the United States of America GenAI Generative artificial intelligence HS Health Sciences High Court Madras, India High Court India Defined Contribution Obligation Certain statutory defined contribution obligations of employees and employers in India IRS Internal Revenue Service ITAT Income Tax Appellate Tribunal in India ITD Indian Income Tax Department NA North America OECD Organization for Economic Cooperation and Development P&R Products & Resources RoW Rest of World SCI Supreme Court of India SEC United States Securities and Exchange Commission Second Circuit United States Court of Appeals for the Second Circuit SG&A Selling, general and administrative Syntel Syntel Sterling Best Shores Mauritius Ltd. Tax Reform Act Tax Cuts and Jobs Act Term Loan Unsecured term loan under the Credit Agreement TriZetto The TriZetto Group, Inc., now known as Cognizant Technology Software Group, Inc. UK United Kingdom USDC-NJ United States District Court for the District of New Jersey USDC-SDNY United States District Court for the Southern District of New York Cognizant Technology Solutions

Forward Looking Statements

Forward Looking Statements The statements contained in this Quarterly Report on Form 10-Q 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 forward-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

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited). COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (in millions, except par values) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 2,231 $ 2,621 Short-term investments 12 14 Trade accounts receivable, net 3,822 3,849 Other current assets 1,021 1,022 Total current assets 7,086 7,506 Property and equipment, net 1,036 1,048 Operating lease assets, net 589 611 Goodwill 6,393 6,085 Intangible assets, net 1,171 1,149 Deferred income tax assets, net 993 993 Long-term investments 83 435 Other noncurrent assets 1,057 656 Total assets $ 18,408 $ 18,483 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 291 $ 337 Deferred revenue 449 385 Short-term debt 33 33 Operating lease liabilities 143 153 Accrued expenses and other current liabilities 2,096 2,425 Total current liabilities 3,012 3,333 Deferred revenue, noncurrent 36 42 Operating lease liabilities, noncurrent 503 523 Deferred income tax liabilities, net 201 226 Long-term debt 598 606 Long-term income taxes payable 157 157 Other noncurrent liabilities 411 369 Total liabilities 4,918 5,256 Commitments and contingencies (See Note 12 ) 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, 497 and 498 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 5 5 Additional paid-in capital 20 15 Retained earnings 13,621 13,301 Accumulated other comprehensive income (loss) ( 156 ) ( 94 ) Total stockholders' equity 13,490 13,227 Total liabilities and stockholders' equity $ 18,408 $ 18,483 The accompanying notes are an integral part of the unaudited consolidated financial statements. Cognizant Technology Solutions 4 March 31, 2024 Form 10-Q Table of Contents COGNIZANT TECHNOLOG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Interim Consolidated Financial Statements The terms "Cognizant," "we," "our," "us" and "the Company" refer to Cognizant Technology Solutions Corporation and its subsidiaries unless the context indicates otherwise. We have prepared the accompanying unaudited consolidated financial statements included herein in accordance with GAAP and the Exchange Act. The accompanying unaudited consolidated financial statements should be read in conjunction w ith our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2023. In our opinion, all adjustments considered necessary for a fair statement of the accompanying unaudited consolidated financial statements have been included and all adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. New Accounting Pronouncements Date Issued and Topic Effective Date Description Impact November 2023 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures Annual period starting in 2024 and interim periods starting in 2025 Retrospective basis The standard requires enhanced segment disclosures but does not change the definition of a segment or the guidance for determining a reportable segment. The amendments require disclosure of significant segment expenses regularly provided to the CODM included within segment operating profit or loss and a description of how the CODM utilizes segment operating profit or loss to assess segment performance and allocating resources. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to allocate resources. The Company is currently evaluating the impact of the new standard on its disclosures. December 2023 Income Taxes (Topic 740):

View Full Filing

View this 10-Q filing on SEC EDGAR