Cognizant Files Q2 2024 10-Q

Ticker: CTSH · Form: 10-Q · Filed: Aug 1, 2024 · CIK: 1058290

Cognizant Technology Solutions Corp 10-Q Filing Summary
FieldDetail
CompanyCognizant Technology Solutions Corp (CTSH)
Form Type10-Q
Filed DateAug 1, 2024
Risk Levellow
Pages16
Reading Time19 min
Key Dollar Amounts$0.01, $0.30
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, quarterly-filing, financials

TL;DR

Cognizant's Q2 10-Q is in. Check financials.

AI Summary

Cognizant Technology Solutions Corp. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business segments are presented, reflecting the company's ongoing activities in the technology services sector.

Why It Matters

This filing provides investors with the latest financial performance data for Cognizant, crucial for understanding the company's health and future prospects in the competitive IT services market.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Players & Entities

  • COGNIZANT TECHNOLOGY SOLUTIONS CORP (company) — Filer
  • 20240630 (date) — Period of Report
  • 20240801 (date) — Filed as of Date

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240630, indicating the filing covers the period ending June 30, 2024.

When was this 10-Q filing submitted to the SEC?

The filing was submitted on 20240801, as indicated by the 'Filed as of Date'.

What is Cognizant Technology Solutions Corp.'s Central Index Key (CIK)?

Cognizant Technology Solutions Corp.'s Central Index Key is 0001058290.

What is the Standard Industrial Classification (SIC) code for Cognizant?

The SIC code for Cognizant is 7371, which corresponds to Services-Computer Programming Services.

What is the company's fiscal year end?

Cognizant's fiscal year end is December 31 (1231).

Filing Stats: 4,817 words · 19 min read · ~16 pages · Grade level 20 · Accepted 2024-07-31 17:36:59

Key Financial Figures

  • $0.01 — hich registered Class A Common Stock, $0.01 par value per share CTSH The Nasdaq Sto
  • $0.30 — 8 ) ( 8 ) — ( 76 ) Dividends declared, $0.30 per share — — — ( 151 ) — ( 151 ) Bal

Filing Documents

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 June 30 , 2024 and December 31, 2023 4 Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30 , 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Unaudited) for the Three an d Six Months Ended June , 2024 and 2023 6 Consolidated Statements of Stockholders' Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023 and June 30, 2024 and 2023 7 Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30 , 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 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 41

OTHER INFORMATION

PART II. OTHER INFORMATION 42

Legal Proceedings

Item 1. Legal Proceedings 42

Risk Factors

Item 1A. Risk Factors 42

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42

Other Information

Item 5. Other Information 42

Exhibits

Item 6. Exhibits 43

SIGNATURES

SIGNATURES 44 Table of Contents GLOSSARY Defined Term Definition 10b5-1 Plan Trading plan adopted pursuant to Rule 10b5-1 under 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 April 18, 2024, as amended 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 Techn

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, matters related to the acquisition of Belcan and other statements regarding matters that are not historical facts, are based on our current expectations, estimates and projections, management's beliefs and certain assu

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) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 2,193 $ 2,621 Short-term investments 12 14 Trade accounts receivable, net 3,973 3,849 Other current assets 1,067 1,022 Total current assets 7,245 7,506 Property and equipment, net 1,009 1,048 Operating lease assets, net 553 611 Goodwill 6,395 6,085 Intangible assets, net 1,129 1,149 Deferred income tax assets, net 1,095 993 Long-term investments 86 435 Other noncurrent assets 1,068 656 Total assets $ 18,580 $ 18,483 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 298 $ 337 Deferred revenue 391 385 Short-term debt 33 33 Operating lease liabilities 148 153 Accrued expenses and other current liabilities 2,076 2,425 Total current liabilities 2,946 3,333 Deferred revenue, noncurrent 29 42 Operating lease liabilities, noncurrent 466 523 Deferred income tax liabilities, net 203 226 Long-term debt 590 606 Long-term income taxes payable — 157 Other noncurrent liabilities 448 369 Total liabilities 4,682 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 June 30, 2024 and December 31, 2023, respectively 5 5 Additional paid-in capital 15 15 Retained earnings 14,028 13,301 Accumulated other comprehensive income (loss) ( 150 ) ( 94 ) Total stockholders' equity 13,898 13,227 Total liabilities and stockholders' equity $ 18,580 $ 18,483 The accompanying notes are an integral part of the unaudited consolidated financial statements. Cognizant Technology Solutions 4 June 30, 2024 Form 10-Q Table of Contents COGNIZANT TECHNOLOGY S

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

View on ReadTheFiling | About | Contact | Privacy | Terms

Data from SEC EDGAR. Not affiliated with the SEC. Not investment advice. © 2026 OpenDataHQ.