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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.

Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.

The full word listadverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
frequently, with less predictability or with greater intensity due to climate change or other drivers, could cause community disruptions and impact our employees’ abilities to commute or to work from home safely and effectively.

Read it in 10-K 2026-02-12 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 ↗

RewordedRisk Factors
Volatile, negative or uncertain economic conditions and geopolitical conditions, including as a result of recession or slowing economic growth, inflation, higher interest rates, tightening of credit markets and changes in trade policy (including trade disputes, the threat or imposition of tariffs or other trade restrictions and related retaliatory actions), have in the past and could in the future cause our clients to reduce, postpone or cancel spending on new or existing projects with us, negatively affecting our business and making it more difficult for us to accurately forecast client demand and have available the right resources to profitably address such client demand, including as a result of inflation, higher interest rates, tightening of credit markets, trade disputes, recession or slowing growth, among others. demand.

Read it in 10-K 2026-02-12 at sec.gov ↗

Show the other 37
RewordedRisk Factors
Furthermore, the legal and regulatory landscape surrounding AI technologies is rapidly evolving and uncertain, with jurisdictions Authorities around the world are applying, or considering applying, laws and regulations related to IP, cybersecurity, export controls, privacy, data security, security and data protection to AI and automated decision-making, or general legal frameworks on AI, decision-making technologies, as well as adopting AI-specific regulatory frameworks, such as emerging U.S. state AI laws and the EU AI Act, Act which entered into force in 2024 and parts of which apply beginning began applying in 2025.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
Security breaches, employee malfeasance, or human or technological error have in the past and could in the future cause shutdowns or disruptions of our, our vendors' or our clients' operations and potential unauthorized access and/or disclosure of our or our clients’ sensitive data, which in turn could jeopardize projects that are critical to our operations or the operations of our clients’ businesses and have other adverse impacts on our business or the business of our clients.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
The uncertainty around the safety and security of new and emerging AI applications requires significant investment to test for security, accuracy, bias, and other variables - These efforts that can be complex, costly, complex and resource intensive, could potentially impact our profit margins, may not sufficiently address risks and may cause decreased demand for our services or harm to our business, results of operations, financial condition, condition or reputation.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
Additionally, we benefit from governmental policies in countries that encourage foreign investment and promote the ease of doing business, such as tax incentives, and any change in policy or circumstances that results in the elimination of such benefits or degradation of the rule of law, or imposition of new adverse restrictions or costs on our operations could have a material adverse effect on our business, results of operations and financial condition.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
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.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, before making an investment decision. and the other documents and materials we file with the SEC, as well as news releases and other information we publicly disseminate from time to time.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
Given the rapid rate pace of change regulatory development and the often uncertain potential for divergent or evolving scope, interpretation, interpretation and application of these laws and regulations, which may be in conflict across jurisdictions, we may not always be able to anticipate how courts and regulators will apply existing laws to AI, predict AI or how new AI-specific legal frameworks will address AI, be implemented, or otherwise ensure compliance with these frameworks.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
If We may be unable to satisfy all of our ESG practices do not meet investor or other stakeholder expectations stakeholders on these matters, and standards, which continue to evolve, as a result our reputation, our ability to attract or retain employees and our business could be negatively affected.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
As a result, we may have to expend resources to adjust our offerings in certain jurisdictions if the legal frameworks on AI are not consistent across jurisdictions, and For example, the EU AI Act may increase costs or impact the operation of our AI services.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
Compliance with new or changing laws, regulations, industry standards or ethical requirements and expectations relating to AI may impose significant operational costs requiring us costs, require additional investment in governance, documentation and controls, or necessitate changes to change our service offerings or business practices, particularly as we expand the use of such technologies, or may limit or prevent our ability to develop, deploy, or use AI technologies.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedRisk Factors
Any performance failure on the part of our alliance partners, or the discontinuance by such alliance partners of services technology that we have relied on them to perform provide for our clients, clients or ourselves, could delay or prevent our performance or require us to unless we engage alternative third parties to perform provide the services equivalent technology at our cost or to perform them provide the equivalent technology ourselves, any of which could deprive us of potential revenue or adversely impact our profitability.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedMD&A
In July 2025, the OBBBA was enacted in the United States, which, among other provisions, repealed the requirement to capitalize U.S. R&E costs. As a result, we do not believe it is more likely than not that we will realize our deferred tax asset of $390 million related to R&E costs capitalized outside the United States. These amounts would have otherwise been available to offset certain future U.S. taxes on our non-U.S. earnings, which, as a result of this repeal, we no longer project to be applicable to us. Therefore, in the third quarter of 2025, we recorded a one-time, non-cash income tax expense of $390 million. This impacted our full year 2025 GAAP diluted EPS by $0.80, which is added back for the calculation of Adjusted EPS. Other than this impact, we do not expect the OBBBA to significantly impact our effective income tax rate. Additionally, as a result of this repeal, our cash taxes during 2025 were reduced by approximately $200 million as compared to our initial cash tax projections prior to the repeal. These assessments are based upon our current interpretation of the OBBBA, which may change as a result of future clarifications or guidance.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedMD&A
The Government of India implemented labor law reforms effective November 21, 2025, including the Code on Social Security, 2020. As a result, during the fourth quarter of 2025, we recorded a one-time increase to our defined benefit liability for past service of $147 million, in "Other noncurrent liabilities" in our consolidated statement of financial position with a corresponding increase in "Accumulated other comprehensive income (loss)". Additionally, we anticipate a modest increase in our defined benefit costs prospectively. Certain aspects of the Labor Code rely on the issuance of rules and regulations. Additionally, the Government of India is in the process of clarifying certain aspects of the Labor Code. The issuance of rules and regulations as well as the outcome of these clarifications could impact our compensation and benefit expenses in India.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedMD&A
•Our Communications Media and Technology segment has seen weakness amongst communications and media customers, offset by growth in technology customers.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedMD&A
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 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.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedMD&A
The decrease in net income was primarily driven by the one-time, non-cash income tax expense of $390 million related to the enactment of the OBBBA, partially offset by an increase in income from operations, including the $62 million gain on sale of property and equipment.

Read it in 10-K 2026-02-12 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 ↗

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 ↗

RewordedMD&A
(Dollars in millions, except per share data) 2024 2025 % of 2023 2024 % of Revenues Revenues GAAP income from operations and operating margin $2,892 $ 3,389 16.1% $ 2,892 14.7% $2,689 13.9% (Gain) on sale of property and equipment(1) (62) (0.3) — — NextGen charges (1) (2) — — 134 0.6 229 1.2 Adjusted Income From Operations and Adjusted Operating Margin $3,026 $ 3,327 15.8% $ 3,026 15.3% $2,918 15.1% GAAP diluted EPS $4.51 $4.21 $ 4.56 $ 4.51 Effect of NextGen charges, above adjustments, pre-tax (0.13) 0.27 0.45 Effect of non-operating foreign currency exchange losses (gains), (gains) losses, pre-tax (2) (3) (0.04) 0.04 — Tax effect of above adjustments (3) (4) 0.09 (0.07) (0.11) One-time income tax expense related to the enactment of the OBBBA (5) 0.80 — Adjusted Diluted EPS $4.75 $4.55 $ 5.28 $ 4.75 Net cash provided by operating activities $2,124 $2,330 $ 2,883 $ 2,124 Purchases of property and equipment (288) (297) (317) Proceeds from sale of property and equipment 70 — Free cash flow $1,827 $2,013 $ 2,665 $ 1,827

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
The decrease increase in cash provided by operating activities in 2024 2025 compared to 2023 2024 was primarily driven by the increase in net income, excluding the one-time, non-cash income tax expense of $390 million we recorded as a result of the enactment of the OBBBA, as well as the $360 million payment we made in January 2024 in relation to our dispute with the ITD in January 2024 (see Note 11 10 to our consolidated financial statements). statements), which reduced cash from operating activities in 2024.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
Our 2024 2025 GAAP and Adjusted Operating Margins were positively impacted by net savings generated from our NextGen program program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, while being negatively impacted partially offset by increased compensation costs, primarily as a result of a merit increase cycle completed during the third quarter of 2024, costs and the dilutive impact of recently completed acquisitions, primarily driven by transaction and integration related expenses and amortization the acquisition of acquired intangibles. Belcan.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
The increase in our 2024 2025 GAAP operating margin and Adjusted Operating Margin5 Margin4 was primarily driven by net savings generated from our NextGen program program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by increased compensation costs, primarily as a result of a merit increase cycle, costs and the dilutive impact of recently completed acquisitions, primarily as a result the acquisition of transaction and integration related expenses and amortization of acquired intangibles. Belcan.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
The increase decrease in cash used in investing activities in 2024 2025 compared to 2023 2024 was primarily driven by higher payments for business combinations as well as lower acquisitions in 2024 and the proceeds from the sale of an office complex in India in 2025, partially offset by net maturities of investments in 2024.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
The increase, as a percentage of revenues, was due to higher driven by increased compensation costs, primarily as a result the dilutive impact of a merit increase cycle, the acquisition of Belcan and the resale resales of third-party products in connection with our integrated offerings strategy, partially offset by operational efficiencies and the beneficial impact of foreign currency exchange rate movements and operational efficiencies. movements.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
Our operating margin and Adjusted Operating Margin2 Margin1 increased to 16.1% and 15.8%, respectively, for the year ended December 31, 2025, from 14.7% and 15.3%, respectively, for the year ended December 31, 2024, from 13.9% and 15.1%, respectively, for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
We believe clients will continue to contend with industry-specific changes driven by evolving digital technologies, uncertainty in the regulatory environment, industry consolidation and convergence as well as international trade policies policies, including tariffs, and other macroeconomic and geopolitical factors, including the uncertainty related to the global economy, which has affected and may continue to affect their demand for our services. factors.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
Potential tax law and other regulatory and administrative changes, including possible U.S. corporate income tax reform and the Code on Social Security, 2020 in India, among other items, judicial decisions thereon, may impact our future results.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
In 2024, 2025, segment operating margins across all our segments were negatively positively impacted by increased compensation costs, partially offset by net savings generated from our NextGen program program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements. movements, partially offset by increased compensation costs.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
The decrease, as a percentage of revenues, was primarily driven by the net savings generated from our NextGen program, partially offset by the impact of recently completed acquisitions, primarily as a result of transaction and integration related expenses. program.

Read it in 10-K 2026-02-12 at sec.gov ↗

RewordedMD&A
Our non-GAAP financial measure Adjusted Diluted EPS excludes unusual items, such as the one-time income tax expense related to the enactment of the OBBBA, the gain on sale of property and equipment and NextGen charges, and net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments.

Read it in 10-K 2026-02-12 at sec.gov ↗

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