COGNIZANT TECHNOLOGY SOLUTIONS CORPCTSH
COGNIZANT TECHNOLOGY SOLUTIONS CORP Revenue Disclosure
Disaggregation of Revenues
The tables below present disaggregated revenues from contracts with clients by client location, service line and contract type for each of our reportable business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Our consulting and technology services include consulting, application development, systems integration, quality engineering and assurance services as well as software solutions and related services while our outsourcing services include application maintenance, infrastructure and security as well as business process services. Revenues are attributed to geographic regions based upon client location, which is the client's billing address. Substantially all revenues in the North America region relate to clients in the United States.
Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| (in millions) | HS | FS | P&R | CMT | Total | |||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||
| Geography: | ||||||||||||||||||||||||||||||||
| North America | $ | 5,311 | $ | 4,380 | $ | 3,728 | $ | 2,361 | $ | 15,780 | ||||||||||||||||||||||
| United Kingdom | 214 | 643 | 584 | 481 | 1,922 | |||||||||||||||||||||||||||
| Continental Europe | 667 | 640 | 650 | 133 | 2,090 | |||||||||||||||||||||||||||
| Europe - Total | 881 | 1,283 | 1,234 | 614 | 4,012 | |||||||||||||||||||||||||||
| Rest of World | 155 | 510 | 323 | 328 | 1,316 | |||||||||||||||||||||||||||
| Total | $ | 6,347 | $ | 6,173 | $ | 5,285 | $ | 3,303 | $ | 21,108 | ||||||||||||||||||||||
| Service line: | ||||||||||||||||||||||||||||||||
| Consulting and technology services | $ | 3,651 | $ | 4,365 | $ | 3,697 | $ | 1,820 | $ | 13,533 | ||||||||||||||||||||||
| Outsourcing services | 2,696 | 1,808 | 1,588 | 1,483 | 7,575 | |||||||||||||||||||||||||||
| Total | $ | 6,347 | $ | 6,173 | $ | 5,285 | $ | 3,303 | $ | 21,108 | ||||||||||||||||||||||
| Type of contract: | ||||||||||||||||||||||||||||||||
| Time and materials | $ | 1,978 | $ | 3,161 | $ | 2,239 | $ | 1,771 | $ | 9,149 | ||||||||||||||||||||||
| Fixed-price | 3,149 | 2,811 | 2,685 | 1,365 | 10,010 | |||||||||||||||||||||||||||
| Transaction or volume-based | 1,220 | 201 | 361 | 167 | 1,949 | |||||||||||||||||||||||||||
| Total | $ | 6,347 | $ | 6,173 | $ | 5,285 | $ | 3,303 | $ | 21,108 | ||||||||||||||||||||||
Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| (in millions) | HS | FS | P&R | CMT | Total | |||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||
| Geography: | ||||||||||||||||||||||||||||||||
| North America | $ | 5,072 | $ | 4,075 | $ | 3,272 | $ | 2,279 | $ | 14,698 | ||||||||||||||||||||||
| United Kingdom | 186 | 572 | 558 | 511 | 1,827 | |||||||||||||||||||||||||||
| Continental Europe | 559 | 613 | 605 | 155 | 1,932 | |||||||||||||||||||||||||||
| Europe - Total | 745 | 1,185 | 1,163 | 666 | 3,759 | |||||||||||||||||||||||||||
| Rest of World | 115 | 493 | 347 | 324 | 1,279 | |||||||||||||||||||||||||||
| Total | $ | 5,932 | $ | 5,753 | $ | 4,782 | $ | 3,269 | $ | 19,736 | ||||||||||||||||||||||
| Service line: | ||||||||||||||||||||||||||||||||
| Consulting and technology services | $ | 3,456 | $ | 4,022 | $ | 3,193 | $ | 1,821 | $ | 12,492 | ||||||||||||||||||||||
| Outsourcing services | 2,476 | 1,731 | 1,589 | 1,448 | 7,244 | |||||||||||||||||||||||||||
| Total | $ | 5,932 | $ | 5,753 | $ | 4,782 | $ | 3,269 | $ | 19,736 | ||||||||||||||||||||||
| Type of contract: | ||||||||||||||||||||||||||||||||
| Time and materials | $ | 1,968 | $ | 3,188 | $ | 1,995 | $ | 1,775 | $ | 8,926 | ||||||||||||||||||||||
| Fixed-price | 2,878 | 2,384 | 2,442 | 1,324 | 9,028 | |||||||||||||||||||||||||||
| Transaction or volume-based | 1,086 | 181 | 345 | 170 | 1,782 | |||||||||||||||||||||||||||
| Total | $ | 5,932 | $ | 5,753 | $ | 4,782 | $ | 3,269 | $ | 19,736 | ||||||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| (in millions) | HS | FS | P&R | CMT | Total | |||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||
| Geography: | ||||||||||||||||||||||||||||||||
| North America | $ | 4,865 | $ | 4,091 | $ | 3,102 | $ | 2,205 | $ | 14,263 | ||||||||||||||||||||||
| United Kingdom | 167 | 613 | 534 | 571 | 1,885 | |||||||||||||||||||||||||||
| Continental Europe | 533 | 605 | 612 | 159 | 1,909 | |||||||||||||||||||||||||||
| Europe - Total | 700 | 1,218 | 1,146 | 730 | 3,794 | |||||||||||||||||||||||||||
| Rest of World | 109 | 500 | 380 | 307 | 1,296 | |||||||||||||||||||||||||||
| Total | $ | 5,674 | $ | 5,809 | $ | 4,628 | $ | 3,242 | $ | 19,353 | ||||||||||||||||||||||
| Service line: | ||||||||||||||||||||||||||||||||
| Consulting and technology services | $ | 3,238 | $ | 3,965 | $ | 3,010 | $ | 1,751 | $ | 11,964 | ||||||||||||||||||||||
| Outsourcing services | 2,436 | 1,844 | 1,618 | 1,491 | 7,389 | |||||||||||||||||||||||||||
| Total | $ | 5,674 | $ | 5,809 | $ | 4,628 | $ | 3,242 | $ | 19,353 | ||||||||||||||||||||||
| Type of contract: | ||||||||||||||||||||||||||||||||
| Time and materials | $ | 2,004 | $ | 3,215 | $ | 1,837 | $ | 1,832 | $ | 8,888 | ||||||||||||||||||||||
| Fixed-price | 2,600 | 2,369 | 2,435 | 1,260 | 8,664 | |||||||||||||||||||||||||||
| Transaction or volume-based | 1,070 | 225 | 356 | 150 | 1,801 | |||||||||||||||||||||||||||
| Total | $ | 5,674 | $ | 5,809 | $ | 4,628 | $ | 3,242 | $ | 19,353 | ||||||||||||||||||||||
Costs to Fulfill
The following table shows significant movements in the capitalized costs to fulfill:
| (in millions) | 2025 | 2024 | ||||||||||||
| Beginning balance | $ | 209 | $ | 245 | ||||||||||
| Costs capitalized | 42 | 55 | ||||||||||||
| Amortization expense | (78) | (89) | ||||||||||||
Impairment charges | (12) | (2) | ||||||||||||
| Ending balance | $ | 161 | $ | 209 | ||||||||||
Costs to obtain contracts were immaterial for the periods disclosed.
Contract Balances
The table below shows significant movements in contract assets (current and noncurrent):
| (in millions) | 2025 | 2024 | ||||||||||||
| Beginning balance | $ | 386 | $ | 316 | ||||||||||
| Revenues recognized during the period but not billed | 451 | 358 | ||||||||||||
| Amounts reclassified to trade accounts receivable | (371) | (288) | ||||||||||||
| Ending balance | $ | 466 | $ | 386 | ||||||||||
The table below shows significant movements in the deferred revenue balances (current and noncurrent):
| (in millions) | 2025 | 2024 | ||||||||||||
| Beginning balance | $ | 480 | $ | 427 | ||||||||||
| Amounts billed but not recognized as revenues | 474 | 421 | ||||||||||||
| Revenues recognized related to the beginning balance of deferred revenue | (416) | (380) | ||||||||||||
| Amounts acquired in business combinations | — | 12 | ||||||||||||
| Ending balance | $ | 538 | $ | 480 | ||||||||||
Revenues recognized during the year ended December 31, 2025 for performance obligations satisfied or partially satisfied in previous periods were immaterial.
Remaining Performance Obligations
As of December 31, 2025, the aggregate amount of transaction price allocated to remaining performance obligations, was $6,279 million, of which approximately 35% is expected to be recognized as revenues within 1 year, approximately 55% is expected to be recognized as revenues within 2 years and approximately 95% is expected to be recognized as revenues within 5 years. Disclosure is not required for performance obligations that meet any of the following criteria:
(1)contracts with a duration of one year or less as determined under ASC Topic 606: "Revenue from Contracts with Customers,"
(2)contracts for which we recognize revenues based on the right to invoice for services performed,
(3)variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or
(4)variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property.
Many of our performance obligations meet one or more of these exemptions and therefore are not included in the remaining performance obligation amount disclosed above.
Trade Accounts Receivable and Allowance for Credit Losses
The following table presents the activity in the allowance for credit losses for trade accounts receivable:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Beginning balance | $ | 26 | $ | 32 | $ | 43 | ||||||||||||||
Credit loss expense (1) | 11 | 12 | 12 | |||||||||||||||||
| Write-offs charged against the allowance | (14) | (18) | (23) | |||||||||||||||||
| Ending balance | $ | 23 | $ | 26 | $ | 32 | ||||||||||||||
(1)Reported in "Selling, general and administrative expenses" in our consolidated statements of operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 19, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.