COGNIZANT TECHNOLOGY SOLUTIONS CORPCTSH
COGNIZANT TECHNOLOGY SOLUTIONS CORP Segments Disclosure
Our chief executive officer is our chief operating decision maker. Our CODM regularly reviews the performance of our business by four industry-based operating segments, which are our four reportable business segments: Health Sciences, Financial Services, Products and Resources, and Communications, Media and Technology.
We have an industry-led go-to-market strategy, with client partners, account executives and client relationship managers aligned to the specific industries they serve. Our CODM is regularly provided segment revenues and operating profit, including budget‑to‑actual variances in segment revenue, to formulate industry-focused strategic priorities, allocate financial resources, set targets and key performance indicators, and evaluate the results of such strategies. These strategic priorities, targets and key performance indicators are translated and applied to each client account, rolling up to respective industry-based operating segments. Our hiring and deployment plans are devised according to the strategic priorities and targets set for the client accounts.
In the first quarter of 2025, we made certain changes to the internal measurement of segment operating profit for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to reflect a more complete cost of delivery. Specifically, segment operating profit now includes an allocation of certain corporate costs, which were previously included in "unallocated costs." We have reported 2025 segment operating profits using the new allocation methodology and have recast the 2024 results to conform to the new methodology. While we have recast the 2024 results to conform to the new methodology, it is impracticable for us to recast our 2023 segment operating results as the detailed information required for the allocation of such costs to the segments is not reasonably available.
Revenue from each client is attributed to the operating segment that is most closely aligned with the client's business we serve. Segment operating profit represents income from operations excluding certain unallocated corporate costs. Our CODM is not regularly provided with segment expenses. A portion of depreciation and amortization expense, certain corporate costs, the impact of the settlements of the cash flow hedges, the gain on the sale of property and equipment and expenses related to our NextGen program are not allocated to individual segments. Accordingly, such expenses are excluded from segment operating profit and are included below as “unallocated costs” and adjusted against our total income from operations.
We do not disclose assets by segment as a significant portion of the assets is used interchangeably among the segments and our CODM is not provided such information.
Information by reportable segment were as follows:
Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| (in millions) | HS | FS | P&R | CMT | Total | ||||||||||||||||||||||||
Revenues | $ | 6,347 | $ | 6,173 | $ | 5,285 | $ | 3,303 | $ | 21,108 | |||||||||||||||||||
Less: other segment items | 5,114 | 5,144 | 4,498 | 2,867 | 17,623 | ||||||||||||||||||||||||
| Segment operating profit | 1,233 | 1,029 | 787 | 436 | 3,485 | ||||||||||||||||||||||||
| Less: unallocated costs | 96 | ||||||||||||||||||||||||||||
| Income from operations | $ | 3,389 | |||||||||||||||||||||||||||
Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| (in millions) | HS | FS | P&R | CMT | Total | ||||||||||||||||||||||||
Revenues | $ | 5,932 | $ | 5,753 | $ | 4,782 | $ | 3,269 | $ | 19,736 | |||||||||||||||||||
Less: other segment items | 4,859 | 4,838 | 4,011 | 2,876 | 16,584 | ||||||||||||||||||||||||
| Segment operating profit | 1,073 | 915 | 771 | 393 | 3,152 | ||||||||||||||||||||||||
| Less: unallocated costs | 260 | ||||||||||||||||||||||||||||
| Income from operations | $ | 2,892 | |||||||||||||||||||||||||||
As described above, in the first quarter of 2025 we made changes to the internal measurement of segment operating profits. While we have recast the 2024 results to conform to the new methodology, it is impracticable for us to recast our 2023 segment operating results as the detailed information required for the allocation of such costs to the segments is not reasonably available.
Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| (in millions) | HS | FS | P&R | CMT | Total | ||||||||||||||||||||||||
Revenues | $ | 5,674 | $ | 5,809 | $ | 4,628 | $ | 3,242 | $ | 19,353 | |||||||||||||||||||
Less: other segment items | 4,322 | 4,653 | 3,644 | 2,617 | 15,236 | ||||||||||||||||||||||||
| Segment operating profit | 1,352 | 1,156 | 984 | 625 | 4,117 | ||||||||||||||||||||||||
| Less: unallocated costs | 1,428 | ||||||||||||||||||||||||||||
| Income from operations | $ | 2,689 | |||||||||||||||||||||||||||
Other segment items for each reportable segment primarily include employee compensation and benefits, subcontractor costs, costs of third-party products and services related to revenue and project-related travel.
Geographic Area Information
Long-lived assets by geographic area are as follows:
| (in millions) | 2025 | 2024 | |||||||||
Long-lived Assets:(1) | |||||||||||
North America(2) | $ | 300 | $ | 338 | |||||||
| Europe | 67 | 72 | |||||||||
Rest of World(3) | 566 | 584 | |||||||||
| Total | $ | 933 | $ | 994 | |||||||
(1) Long-lived assets include property and equipment, net of accumulated depreciation and amortization.
(2) Substantially all relates to the United States.
(3) Substantially all relates to India.
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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 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.