COGNIZANT TECHNOLOGY SOLUTIONS CORPCTSH

COGNIZANT TECHNOLOGY SOLUTIONS CORP Goodwill & Intangibles Disclosure

10-KFiled Feb 12, 20262 min read
Changes in goodwill by our reportable business segments were as follows for the years ended December 31, 2025 and 2024:
(in millions)
January 1, 2025
Goodwill Additions
Foreign Currency Translation AdjustmentsDecember 31, 2025
Health Sciences$2,895 $— $20 $2,915 
Financial Services1,129 — 48 1,177 
Products and Resources1,884 — 50 1,934 
Communications, Media and Technology1,045 — 35 1,080 
Total goodwill$6,953 $— $153 $7,106 
(in millions)
January 1, 2024Goodwill Additions and AdjustmentsForeign Currency Translation AdjustmentsDecember 31, 2024
Health Sciences$2,840 $68 $(13)$2,895 
Financial Services1,109 48 (28)1,129 
Products and Resources1,217 698 (31)1,884 
Communications, Media and Technology919 144 (18)1,045 
Total goodwill$6,085 $958 $(90)$6,953 
Based on our most recent goodwill impairment assessment performed as of October 31, 2025, we concluded that the goodwill in each of our reporting units was not at risk of impairment. We have not recognized any impairment losses on our goodwill.
Components of intangible assets were as follows as of December 31:
 20252024
(in millions)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount		Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Customer relationships$2,593 $(1,310)$1,283 $2,534 $(1,068)$1,466 
Developed technology394 (386)8 384 (379)5 
Indefinite lived trademarks116 — 116 116 — 116 
Finite lived trademarks and other84 (74)10 81 (69)12 
Total intangible assets$3,187 $(1,770)$1,417 $3,115 $(1,516)$1,599 

Other than certain trademarks with indefinite lives, our intangible assets have finite lives and, as such, are subject to amortization. Amortization of intangible assets totaled $218 million, $188 million and $165 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following table provides the estimated amortization expense related to our existing intangible assets for the next five years.
(in millions)Estimated Amortization
2026
$217 
2027
209 
2028
187 
2029
169 
2030
144 

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 12, 2025
2023Feb 14, 2024
2022Feb 15, 2023
2021Feb 16, 2022
2020Feb 12, 2021
2019Feb 14, 2020
2018Feb 19, 2019
2017Feb 27, 2018
2016Mar 1, 2017
2015Feb 25, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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