Short answer
Cognizant (CTSH) filed its fiscal 2025 10-K annual report with the SEC on Feb 12, 2026. It reported revenue of $21.1B (+7.0% year over year) and net income of $2.2B.
- Top risk flagged: One-time $390M non-cash income tax expense from enactment of OBBBA impacting 2025 effective tax rate
FY2025 key financial metrics · XBRL
- Revenue
- $21.1B
- +7.0% YoY
- Net income
- $2.2B
- −0.4% YoY
- Operating margin
- 16.1%
- +1.4 pp YoY
- EPS (diluted)
- $4.56
- +1.1% YoY
- ROE
- 14.9%
- −0.7 pp YoY
- Operating cash flow
- $2.9B
- +35.7% YoY
Source: XBRL data from the Cognizant (CTSH) FY2025 10-K on SEC EDGAR. USD.
Cognizant FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Technology-driven digital transformation services with focus on AI, data, and customer-centric solutions
- New emphasis on AI and GenAI integration in client offerings and internal operations
- Strategic focus on supporting clients' productivity, cost savings, and resilience amid geopolitical and regulatory uncertainties
- Potential impact on effective tax rate from March 2024 India-Mauritius Income Tax Treaty amendment involving key subsidiaries
- Recognition of evolving AI market competitiveness and risk of reduced demand/pricing pressure for existing services
Management Discussion & Analysis
- Revenue $20,986M, up $1,372M or 7.0% YoY; 6.4% growth in constant currency; Belcan acquisition added 260 bps
- Operating margin 16.1% vs 14.7% YoY; Adjusted operating margin 15.8% vs 15.3%, driven by NextGen savings and FX benefits
- Health Sciences and Financial Services best performers; Products & Resources and Communications Media & Technology faced weakness
- Cash tax savings $200M from U.S. tax law change; $390M non-cash tax expense reduced GAAP EPS by $0.80, adjusted EPS up 11.2%
- Voluntary tech attrition down to 13.9% from 15.9%; Headcount increased to 351,600 from 336,800 at year-end 2024
Risk Factors
- One-time $390M non-cash income tax expense from enactment of OBBBA impacting 2025 effective tax rate
- 23% of global operating costs in India exposed to Indian rupee exchange rate fluctuations, affecting operating margin by ~50 basis points in 2025
- Dilutive impact on Products and Resources segment margin from integration and third-party resales post Belcan acquisition
- Increased competition risk from technology shifts affecting Communications Media and Technology segment customers
- $1.85B unsecured revolving credit facility available, with $300M repayment in 2025 and $650M Term Loan due October 2027
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