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CTSHCognizant

Technology · IT Services · Nasdaq
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The 10-K against last year's

99 changes: 6 added, 15 removed, 78 reworded

10-K Feb 12, 2026 vs Feb 12, 2025
Risk FactorsRedline ↓
18.2%
of the text changed · 9,396 words now
23.8%
of the text changed · 5,813 words now
Legal ProceedingsRedline ↓
20.7%
of the text changed · 2,428 words now
Accounting PoliciesRedline ↓
12.0%
of the text changed · 5,482 words now

10-K 0001058290-26-000008 (2026-02-12) vs 10-K 0001058290-25-000017 (2025-02-12)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Accounting Policies 288 words changed in this paragraph; it is 34% similar to last year's version.
Date Issued and Topic Effective Date Description Impact December 2023 Annual period starting in 2025 The standard requires enhanced income tax disclosures primarily related to the income tax rate reconciliation and income taxes paid information. We are currently evaluating the impact of the new standard on our disclosures. Income Taxes (Topic 740): Improvements to Income Tax Disclosures Prospective basis November 2024 Annual period starting in 2027 and interim periods starting in 2028 The standard is intended to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. We are currently evaluating the impact of the new standard on our disclosures. Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) Prospective basis ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── July 2025 Annual reporting periods starting in 2026, and interim reporting periods within those annual reporting periods The standard is intended to simplify the measurement of credit losses for accounts receivable and contract assets by providing a practical expedient that allows an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. We are currently evaluating the impact of applying the practical expedient. Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets Prospective basis September 2025 Annual reporting periods starting in 2028, and interim reporting periods within those annual reporting periods The standard is intended to modernize the internal-use software guidance, making it easier to apply to various software development methods. We are currently evaluating the impact on our internal use software capitalization policy. Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software Prospective basis December 2025 Annual reporting periods starting in 2029, and interim reporting periods within those annual reporting periods The standard provides authoritative guidance for business entities receiving government grants, establishing rules for their recognition, measurement, presentation, and disclosure. We are currently evaluating the impact, and we do not expect the standard to have a significant impact on our financial statements. Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities Prospective basis ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

Source: 10-K text, Note 1 – Business Description and Summary of Significant Accounting Policies, 10-K 0001058290-26-000008 vs 10-K text, Note 1 – Business Description and Summary of Significant Accounting Policies, 10-K 0001058290-25-000017

Risk Factors 258 words changed in this paragraph; it is 50% similar to last year's version.
A substantial portion of our employees in the United States and in many other jurisdictions, including countries in Europe, rely upon temporary work authorization or work permits, which makes our business particularly vulnerable to changes and variations in immigration laws and regulations, including written changes and policy changes to the manner in which the laws and regulations are interpreted or enforced, and potential enforcement actions and penalties that might cause us to lose access to such visas. The political environment in the United States, the United Kingdom and other countries in recent years has included significant support for anti-immigrant legislation and administrative changes. Many of these recent changes have resulted in, and various proposed and enacted changes may result in, increased difficulty in obtaining timely visas, whether as a result of visa application rejections, delays in processing applications, significantly increased costs to obtain visas, prevailing wage requirements for our employees on visas or otherwise, which could in turn impact our ability to staff projects. In addition, immigration reform, including as a result of changes to immigration policies, and the increased uncertainty surrounding such policies in light of the incoming U.S. administration's expected immigration agenda, may have a material adverse impact on companies like ours that have a substantial percentage of our employees on visas. Our principal operating subsidiary in the United States utilizes a high number of skilled workers holding H-1B and L-1 visas and, as a result, may be subject to increased costs upon the effectiveness of any such laws, regulations, policy changes or executive orders. In the EU, many countries continue to implement new regulations to move into compliance with the EU Directive of 2014 to harmonize immigration rules for intracompany transferees in most EU member states and to facilitate the transfer of managers, specialists and graduate trainees both into and within the region. The changes have had significant impact on mobility programs and have led to new notification and documentation requirements for companies sending employees to EU countries. Recent changes or any additional adverse revisions to immigration laws and regulations in the jurisdictions in which we operate may cause us delays, staffing shortages, additional costs or an inability to bid for or fulfill projects for clients, any of which could have a material adverse effect on our business, results of operations and financial condition.

Source: Item 1A, 10-K 0001058290-26-000008 vs Item 1A, 10-K 0001058290-25-000017

Legal Proceedings 239 words changed in this paragraph; it is 45% similar to last year's version.
$ 570 million. The USDC-SDNY subsequently issued a final judgment consistent with the April 20th order. On May 26, 2021, Syntel filed a notice of appeal to the Second Circuit, and on June 3, 2021 the USDC-SDNY stayed execution of judgment pending appeal. On May 25, 2023, the Second Circuit issued an opinion affirming in part and vacating in part the judgment of the USDC-SDNY and remanding the case for further proceedings consistent with its opinion. The Second Circuit affirmed the judgment in all respects on liability but vacated the $ 570 million award that had been based on avoided development costs under the DTSA, and it remanded the case to the USDC-SDNY for further evaluation of damages. On June 23, 2023, the Second Circuit issued its mandate returning the case to the USDC-SDNY. On March 13, 2024, the USDC-SDNY issued a ruling that vacates vacated the alternate compensatory damages awards that were within the scope of the Second Circuit’s remand and awards awarded TriZetto and Cognizant approximately $ 15 million in attorney’s fees. On October 23, 2024, the USDC-SDNY granted TriZetto and Cognizant’s motion for a new trial on the amount of compensatory damages owed to TriZetto and Cognizant. On November 12, 2024, June 24, 2025, the USDC-SDNY scheduled parties proceeded to trial, and on June 30, 2025, the trial for June 16, 2025. On November 13, 2024, the USDC-SDNY granted Syntel’s request to certify for interlocutory appeal the question jury returned a verdict in favor of whether the Second Circuit’s mandate permits the USDC-SDNY’s October 23rd order for a new trial on TriZetto and Cognizant, awarding $ 70 million in compensatory damages. The parties subsequently completed briefing at the Second Circuit on December 27, 2024, regarding whether the Second Circuit should take up the interlocutory appeal, Entry of judgment remains pending. Thereafter, we expect Syntel to appeal and a decision is pending. TriZetto and Cognizant will continue to vigorously pursue our claims against Syntel. We thus we will not record any gain in our financial statements until it becomes realizable.

Source: Item 3, via Note 14 – Commitments and Contingencies, 10-K 0001058290-26-000008 vs Item 3, via Note 15 – Commitments and Contingencies, 10-K 0001058290-25-000017

MD&A 132 words changed in this paragraph; it is 59% similar to last year's version.
The foreign currency exchange gains and losses were attributed to the remeasurement of net monetary assets and liabilities denominated in currencies other than the functional currencies of our subsidiaries. The gains on foreign exchange forward contracts not designated as hedging instruments related to the realized and unrealized gains and losses on contracts entered into to offset our foreign currency exposures. As of December 31, 2024, 2025, the notional value of our undesignated hedges was $489 $748 million. Interest income for the year ended December 31, 2024 decreased by $7 million declined in 2025 as compared to 2023. While our 2024, driven by a mix of lower invested balances decreased and lower yields. Higher interest expense during 2024 was driven by the year ended December 31, 2024, primarily due to the required payment related to the ITD dispute in January 2024 (see Note 11 to our consolidated financial statements) and the Belcan acquisition in August 2024, we benefited from higher interest rates compared to the year ended December 31, 2023. Interest expense for the year ended December 31, 2024 increased by $13 borrowing of $600 million as compared to 2023 primarily due to the drawdown on under our revolving credit facility to partially fund the acquisition of Belcan during the third quarter of 2024. The borrowing was subsequently repaid in connection with the Belcan acquisition. fourth quarter of 2024 and first quarter of 2025.

Source: Item 7, 10-K 0001058290-26-000008 vs Item 7, 10-K 0001058290-25-000017

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of CTSH's Risk Factors and MD&A, 10-K 2026-02-12 against 10-K 2025-02-12. Each links to the text at sec.gov.

RemovedRisk Factors
The markets we serve and operate in are highly competitive, subject to rapid change and characterized by a large number of participants, as described in “Part I, Item 1. Business-Competition.” We compete on the basis of reputation and experience, strategic advisory capabilities, digital services capabilities, performance and reliability, responsiveness to customer needs, financial stability, corporate governance and competitive pricing of services. The less we are able to differentiate our services

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedRisk Factors
Additionally, our efforts to offer our employees a value proposition that is competitive and appealing may be unsuccessful and could have an adverse effect on engagement and retention, which may materially adversely affect our business.

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedRisk Factors
our need to devote time and resources to training, professional development and other typically non-chargeable activities. Increases in wages and other costs, including as a result of attrition, may also put pressure on our profitability.

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedRisk Factors
Our NextGen program and the associated reductions in headcount and consolidation of office space could disrupt our business and may not result in anticipated savings.

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedRisk Factors
At the end of 2024, we completed our NextGen program, which was aimed at simplifying our operating model, optimizing corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment. In 2024, we incurred $134 million of employee separation, facility exit and other costs related to the program, bringing the total costs incurred since inception to $363 million. See Note 4 to our consolidated financial statements. Our NextGen program may result in the loss of institutional knowledge and expertise, the reallocation of certain roles and responsibilities across the Company, difficulties in the retention of our remaining employees and reduced productivity among our remaining employees, all of which could have a material adverse affect on our operations. In addition, we may not realize, in full or in part, the anticipated benefits, savings and improvements in our cost structure from our NextGen program due to unforeseen difficulties or unexpected costs. If we are unable to realize the expected operational efficiencies and cost savings from our NextGen program, our operating results and financial condition would be adversely affected.

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedRisk Factors
accurately, or that we will be able to score well as such criteria change. We supplement our participation in ratings systems with published disclosures of our ESG activities, but some investors may desire other disclosures that we do not provide.

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedMD&A
At the end of 2024, we completed our NextGen program, which was aimed at simplifying our operating model, optimizing corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment. The savings generated by the program are funding continued investments in our people, revenue growth opportunities and the modernization of our office space. In 2024, we incurred $134 million of employee separation, facility exit and other costs related to the program, bringing the total costs incurred since inception to $363 million. See Note 4 to our consolidated financial statements.

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedMD&A
During the third quarter of 2024, we completed the acquisition of Belcan. See Note 3 to our consolidated financial statements. This acquisition is expected to have a modest near-term dilutive impact to our 2025 operating margin, primarily due to integration-related expenses and amortization of acquired intangibles.

Read it in 10-K 2025-02-12 at sec.gov ↗

Show the other 7
RemovedMD&A
•The resale of third-party products, primarily in North America, in connection with our integrated offerings strategy, contributed 70 basis points of growth to the overall change in revenue;

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedMD&A
•Reduced demand for discretionary work negatively impacted revenues across all segments. Clients in our Financial Services, Products and Resources, and Communications, Media and Technology segments were particularly affected;

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedMD&A
•Revenue decline in our United Kingdom region was primarily driven by weakness in the Communications, Media and Technology and Financial Services segments; and

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedMD&A
In December 2021, the OECD adopted model rules for a global framework to impose a 15% global minimum tax referred to as Pillar Two with a targeted effective date of January 1, 2024. The OECD has continued and is continuing to issue additional guidance on the operation of the model rules. While the United States has not enacted Pillar Two, certain countries in which we operate have adopted their own version of the Pillar Two model rules. Although Management continues to monitor additional guidance from the OECD and countries’ implementation of Pillar Two, based on current guidance, our net income, cash flows, or financial condition has not and will not in the future be materially impacted by Pillar Two.

Read it in 10-K 2025-02-12 at sec.gov ↗

RemovedMD&A
Revenue Recognition. Revenues related to fixed-price contracts for application development and systems integration services, consulting or other technology services are recognized as the service is performed using the cost-to-cost method,

Read it in 10-K 2025-02-12 at sec.gov ↗

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