On this page of StockholderLetter.com we present the latest annual shareholder letter from COGNIZANT TECHNOLOGY SOLUTIONS CORP — ticker symbol CTSH. Reading current and past CTSH letters to shareholders can bring important insights into the investment thesis.
2025 Annual Report
The AI Builder era requiring rigorous governance, contextual intelligence and auditability controls to deliver enterprise-grade results clients can trust. When I began my journey as Cognizant s CEO three years ago, we set out with a clear mandate: to reclaim our winning heritage. 2025 proved to be a landmark year as we deepened client connections, strengthened our execution muscle, established a platform for lifelong learning for our associates and delivered top-tier1 revenue growth that placed us in our industry s winners circle. This change gives us the opportunity to be builders again creating full-stack, custom agentic journeys and delivering outcomes as a service for our clients. It also gives us the chance to define the AI Builder category. As a company with interdisciplinary depth across domain expertise and AI engineering, the client understanding to co-create from the trenches, and the operational courage and discipline to be committed to client outcomes, we are an AI Builder. This performance is a foundation for the era ahead. AI is recomposing the technology services industry away from configuring packaged software and towards creating bespoke intelligence systems grounded in how each business operates. This is builder s work, and it is a return to what Cognizant was founded to do. Powering our AI Builder approach Cognizant BASIS, our consulting-led framework that enables enterprise reinvention and helps reduce legacy operating models as the bottleneck to AI diffusion. Bridging the velocity gap Context engineering, a discipline that Cognizant has advanced and formalized with certification tracks and integration into client work; it has gained significant traction with clients over the past 12 months. As AI infrastructure increasingly relies on similar frontier models and commoditized capabilities, we believe sustainable competitive advantage will come from how effectively proprietary context is used to shape AI systems around the distinct realities of each business. Our award-winning AI Lab, with its 62 US patents at the end of 2025 and more than 50 researchers, continues to expand globally. The AI Lab s mandate is to sense the future and partner closely with clients, our platforms and products group, and our solutioning teams to translate frontier research into industry-relevant use cases. Our products and platforms, including Neuro AI and Flowsource , enable us to deliver scaled benefits in implementation, modernization and operations, while creating greater nonlinearity in how we operate and grow. Today s central opportunity is what we call the AI velocity gap the growing chasm between the trillions of dollars invested in AI infrastructure and the slower realization of P&L value. While the technology is mature enough to help unlock an estimated $4.5 trillion in US labor value alone (according to our latest New work, new world research), its value has not yet drifted to enterprises. Companies are facing enormous complexity as they retool their workforces with human and digital labor, redesign operating models, refactor software development, embrace agentic workflows and shift towards AI-native technology architectures all at once. Our mission is to bridge this gap by building bespoke AI-powered solutions to help simplify, reduce risk and accelerate our clients journeys to scaled AI adoption and value. By creating and owning the proprietary frameworks and methodologies that ground AI within the context of each client s business, we are also capturing durable value in this new economy. Defining the AI Builder company 1 Directly supporting our AI Builder approach are: In the beginning, Cognizant was not a systems integrator. We built systems and engineered outcomes, driving broad-based economic value that fueled growth for our clients. The enterprise software era shifted the center of gravity. Value migrated to the software companies who owned the product, and we became integrators. We surround this with a powerful and diverse partnership ecosystem of hyperscalers, domain innovators and AI-native companies that enables our clients to benefit from best-ofbreed capabilities at every layer of the stack while limiting lock-in to any single provider. New AI capabilities are changing the equation. The deterministic software of the past rulebased, repeatable, suited for off-the-shelf applications has given way to Software 2.0: probabilistic, contextual, naturally bespoke and increasingly authored by AI. In the AI world, systems matter more than ever, In 2025, we laid out our three-vector AI strategy, which includes: 1) using AI to accelerate software development and reduce technical debt, 2) industrializing AI from pilots into enterprisegrade systems, and 3) agentifying the enterprise by creating agentic capital that can tackle objectives traditional software is largely unable to reach. 2025 Cognizant Annual Report Accelerating growth: Our 2025 momentum
We delivered a record full-year revenue of over $21 billion, with 7% growth or 6.4% growth in constant currency. 2 Importantly, our growth was profitable. We expanded operating margin and delivered earnings per share growth even as we funded significant advancements in our platforms, partnerships and intellectual property including opening our newest AI Lab in Bengaluru and adding new IP to our patent portfolio. We accomplished this while maintaining our investments in our people. This financial performance is an outcome of our operational rigor. Trailing 12-month bookings grew 5% year-on-year, and we signed 28 large deals with a total contract value (TCV) of over $100 million each, with the TCV of large deals increasing by nearly 50% from the prior year. Our client Net Promoter Score reached its highest level in four years and is up meaningfully from 2023, demonstrating the effectiveness of our client-centric focus. And we returned $2 billion to shareholders, reflecting our confidence in our long-term trajectory. Amplifying talent: A new model for human capital Underpinning our AI Builder approach is our talent strategy. We are evolving from a linear staffing model to an asynchronous macro-delegate/ micro-steer framework, where our associates delegate complex tasks to agentic networks and steer the strategy. We are also broadening our talent base by hiring non-STEM graduates and early-career talent. This includes recruiting liberal arts graduates who bring an interdisciplinary skill set able to uncover 2 1 Top tier is defined as the top four, out of peer group which includes Accenture plc; Capgemini SE; CGI Inc.; DXC Technology Company; EPAM Systems, Inc.; Genpact Limited; HCL Technologies Limited; Infosys Limited; Tata Consultancy Services Ltd.; and Wipro Limited. 2 Constant currency revenue growth is not a measure of financial performance prepared in accordance with GAAP. See Non-GAAP financial measures in our Annual Report on Form 10-K for the year ended December 31, 2025, pages 34 36 for more information and a reconciliation to the most directly comparable GAAP financial measures, as applicable. 2025 Cognizant Annual Report new problems worth solving. By hiring non-STEM graduates alongside engineers, we re building a workforce equipped with the judgment to steer autonomous agents through complex workflows. Finally, having surpassed our initial goal to train one million people in future-ready skills, we ve set a new target to upskill two million individuals globally by 2030 through our Synapse program. Cognizant s history is a testament to the power of adaptation. Thirty years ago, we were builders. Today, we have reclaimed that mindset to accelerate value realization for our clients. For decades, technology services were largely anchored in technology spend, a narrow slice of total enterprise budgets. Today, clients are applying intelligence to core operational processes that traditional software was never built to address. This shifts our opportunity deeper into the operational heart of the enterprise, dramatically expanding the scope of value we can create. As we enter 2026, we do so with a clear view of the work ahead. While our foundation is set, true transformation is achieved through the consistent, disciplined application of intelligence to the world s most complex workflows. We are committed to this process of co-innovation, building the systems and the trust necessary to redefine productivity for a new age. I thank our more than 350,000 associates for their dedication and commitment to becoming the builders of the future. I thank our clients for their partnership and our shareholders for their continued support. The AI Builder era has arrived. We are ready. Ravi Kumar S Chief Executive Officer
We are an AI Builder 3 2025 Cognizant 2025 Annual Cognizant ReportAnnual Report
Building the tools, models, platforms and agents that make AI s potential real for the enterprise. AI is driving change much faster than expected In our original New work, new world research from 2023, we predicted AI s disruptive impact would have the potential to reach an astounding 90% of jobs within the next decade. As it turned out, we were right only according to our latest analysis, AI s capability has reached that level six years early. In the last year alone, powerful AI models have emerged that can interpret more diverse datasets, employ more advanced reasoning capabilities and deploy agent-driven systems capable of complex work with minimal human involvement. AI is changing how work gets done and charging forward, fast. Our clients are well aware of AI s impact. To keep pace, they need a partner with a deep understanding of their business and this technology experts who comprehend the forces that are shaking up markets and changing what customers require. Enterprises must learn to reliably create value, as AI shifts from novelty to everyday necessity. many companies are accelerating their AI adoption. But we believe few are realizing the impact they hoped to see. Our top priority has always been to help our clients remain relevant. From successive technology waves to new paradigms, we have built a reputation for sensing key technology shifts ahead of the market and moving quickly to develop products and services that help our clients transform and stay ahead. This agility, at scale, has been a crucial differentiator for us and for our clients who rely on our continuously evolving capabilities. To lead in the AI era, relevance means accelerating the transition from AI investments to real-world business value. So, we re returning to our heritage as a builder. Only now, we re building to help our clients unlock the value of AI. Businesses need an AI builder Traditional service models are designed for scalability. They prioritize operational efficiency and linear growth. Today, these business objectives are no less important. They re also no longer sufficient. Amid a $5 trillion infrastructure investment where intelligence will be embedded everywhere, 2025 Cognizant Annual Report 4
 • shareholder letter icon 4/17/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/21/2023 CTSH Stockholder Letter
 • stockholder letter icon 4/23/2024 CTSH Stockholder Letter
 • stockholder letter icon 4/18/2025 CTSH Stockholder Letter
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CTSH Shareholder/Stockholder Letter Transcript:


2025 Annual Report

The AI Builder era
requiring rigorous governance, contextual
intelligence and auditability controls to deliver
enterprise-grade results clients can trust.
When I began my journey as Cognizant   s CEO
three years ago, we set out with a clear mandate:
to reclaim our winning heritage. 2025 proved
to be a landmark year as we deepened client
connections, strengthened our execution muscle,
established a platform for lifelong learning for our
associates and delivered top-tier1 revenue growth
that placed us in our industry   s winners    circle.
This change gives us the opportunity to be builders
again   creating full-stack, custom agentic journeys
and delivering outcomes as a service for our clients.
It also gives us the chance to define the    AI Builder   
category. As a company with interdisciplinary depth
across domain expertise and AI engineering, the
client understanding to co-create from the trenches,
and the operational courage and discipline to be
committed to client outcomes, we are an AI Builder.
This performance is a foundation for the era
ahead. AI is recomposing the technology services
industry   away from configuring packaged
software and towards creating bespoke
intelligence systems grounded in how each
business operates. This is builder   s work, and it is
a return to what Cognizant was founded to do.
Powering our AI Builder approach

Cognizant BASIS, our consulting-led
framework that enables enterprise reinvention
and helps reduce legacy operating models
as the bottleneck to AI diffusion.
Bridging the velocity gap

Context engineering, a discipline that
Cognizant has advanced and formalized
with certification tracks and integration into
client work; it has gained significant traction
with clients over the past 12 months. As AI
infrastructure increasingly relies on similar
frontier models and commoditized capabilities,
we believe sustainable competitive advantage
will come from how effectively proprietary
context is used to shape AI systems around
the distinct realities of each business.

Our award-winning AI Lab, with its 62 US
patents   at the end of 2025   and more
than 50 researchers, continues to expand
globally. The AI Lab   s mandate is to sense
the future and partner closely with clients,
our platforms and products group, and
our solutioning teams to translate frontier
research into industry-relevant use cases.

Our products and platforms, including Neuro  
AI and Flowsource   , enable us to deliver scaled
benefits in implementation, modernization
and operations, while creating greater
nonlinearity in how we operate and grow.
Today   s central opportunity is what we call the
AI velocity gap   the growing chasm between
the trillions of dollars invested in AI infrastructure
and the slower realization of P&L value. While
the technology is mature enough to help unlock
an estimated $4.5 trillion in US labor value
alone (according to our latest    New work, new
world    research), its value has not yet drifted to
enterprises. Companies are facing enormous
complexity as they retool their workforces with
human and digital labor, redesign operating
models, refactor software development, embrace
agentic workflows and shift towards AI-native
technology architectures   all at once.
Our mission is to bridge this gap by building
bespoke AI-powered solutions to help simplify,
reduce risk and accelerate our clients    journeys
to scaled AI adoption and value. By creating
and owning the proprietary frameworks and
methodologies that ground AI within the
context of each client   s business, we are also
capturing durable value in this new economy.
Defining the    AI Builder    company
1
Directly supporting our AI Builder approach are:
In the beginning, Cognizant was not a systems
integrator. We built systems and engineered
outcomes, driving broad-based economic value
that fueled growth for our clients. The enterprise
software era shifted the center of gravity. Value
migrated to the software companies who owned
the product, and we became integrators.
We surround this with a powerful and diverse
partnership ecosystem of hyperscalers, domain
innovators and AI-native companies that
enables our clients to benefit from best-ofbreed capabilities at every layer of the stack
while limiting lock-in to any single provider.
New AI capabilities are changing the equation.
The deterministic software of the past   rulebased, repeatable, suited for off-the-shelf
applications   has given way to Software
2.0: probabilistic, contextual, naturally
bespoke and increasingly authored by AI. In
the AI world, systems matter more than ever,
In 2025, we laid out our three-vector AI strategy,
which includes: 1) using AI to accelerate software
development and reduce technical debt,
2) industrializing AI from pilots into enterprisegrade systems, and 3) agentifying the enterprise by
creating    agentic capital    that can tackle objectives
traditional software is largely unable to reach.
2025 Cognizant Annual Report
Accelerating growth: Our 2025 momentum

We delivered a record full-year revenue of over
$21 billion, with 7% growth or 6.4% growth in
constant currency. 2 Importantly, our growth
was profitable. We expanded operating margin
and delivered earnings per share growth even
as we funded significant advancements in
our platforms, partnerships and intellectual
property   including opening our newest AI
Lab in Bengaluru and adding new IP to our
patent portfolio. We accomplished this while
maintaining our investments in our people.
This financial performance is an outcome
of our operational rigor. Trailing 12-month
bookings grew 5% year-on-year, and we signed
28 large deals with a total contract value
(TCV) of over $100 million each, with the TCV
of large deals increasing by nearly 50% from
the prior year. Our client Net Promoter Score  
reached its highest level in four years and is up
meaningfully from 2023, demonstrating the
effectiveness of our client-centric focus. And we
returned $2 billion to shareholders, reflecting
our confidence in our long-term trajectory.
Amplifying talent: A new model
for human capital
Underpinning our AI Builder approach is our talent
strategy. We are evolving from a linear staffing
model to an asynchronous    macro-delegate/
micro-steer    framework, where our associates
delegate complex tasks to agentic networks
and steer the strategy. We are also broadening
our talent base by hiring non-STEM graduates
and early-career talent. This includes recruiting
liberal arts graduates who bring an
interdisciplinary skill set able to uncover
2
1
Top tier is defined as the top four, out of peer group which includes
Accenture plc; Capgemini SE; CGI Inc.; DXC Technology Company;
EPAM Systems, Inc.; Genpact Limited; HCL Technologies Limited;
Infosys Limited; Tata Consultancy Services Ltd.; and Wipro Limited.
2
Constant currency revenue growth is not a measure of financial
performance prepared in accordance with GAAP. See    Non-GAAP
financial measures    in our Annual Report on Form 10-K for the year
ended December 31, 2025, pages 34   36 for more information and
a reconciliation to the most directly comparable GAAP financial
measures, as applicable.
2025 Cognizant Annual Report
new problems worth solving. By hiring non-STEM
graduates alongside engineers, we   re building a
workforce equipped with the judgment to steer
autonomous agents through complex workflows.
Finally, having surpassed our initial goal to train
one million people in future-ready skills, we   ve
set a new target to upskill two million individuals
globally by 2030 through our Synapse program.
Cognizant   s history is a testament to the
power of adaptation. Thirty years ago, we were
builders. Today, we have reclaimed that mindset
to accelerate value realization for our clients.
For decades, technology services were largely
anchored in technology spend, a narrow slice of
total enterprise budgets. Today, clients are applying
intelligence to core operational processes that
traditional software was never built to address.
This shifts our opportunity deeper into the
operational heart of the enterprise, dramatically
expanding the scope of value we can create.
As we enter 2026, we do so with a clear view
of the work ahead. While our foundation is set,
true transformation is achieved through the
consistent, disciplined application of intelligence
to the world   s most complex workflows. We are
committed to this process of co-innovation,
building the systems and the trust necessary
to redefine productivity for a new age.
I thank our more than 350,000 associates
for their dedication and commitment to
becoming the builders of the future. I thank
our clients for their partnership and our
shareholders for their continued support.
The AI Builder era has arrived. We are ready.
Ravi Kumar S
Chief Executive Officer

We are
an AI Builder
3
2025 Cognizant
2025
Annual
Cognizant
ReportAnnual Report

Building the tools, models,
platforms and agents that make
AI   s potential real for the enterprise.
AI is driving change   much
faster than expected
In our original    New work, new world   
research from 2023, we predicted AI   s
disruptive impact would have the potential to
reach an astounding 90% of jobs within the
next decade. As it turned out, we were right   
only according to our latest analysis, AI   s
capability has reached that level six years early.
In the last year alone, powerful AI models
have emerged that can interpret more diverse
datasets, employ more advanced reasoning
capabilities and deploy agent-driven systems
capable of complex work with minimal
human involvement. AI is changing how work
gets done and charging forward, fast.
Our clients are well aware of AI   s impact.
To keep pace, they need a partner with a
deep understanding of their business and
this technology   experts who comprehend
the forces that are shaking up markets and
changing what customers require. Enterprises
must learn to reliably create value, as AI
shifts from novelty to everyday necessity.
many companies are accelerating their
AI adoption. But we believe few are
realizing the impact they hoped to see.
Our top priority has always been to help our
clients remain relevant. From successive
technology waves to new paradigms, we have
built a reputation for sensing key technology
shifts ahead of the market   and moving
quickly to develop products and services that
help our clients transform and stay ahead.
This agility, at scale, has been a crucial
differentiator for us   and for our clients who
rely on our continuously evolving capabilities.
To lead in the AI era, relevance means
accelerating the transition from AI investments
to real-world business value. So, we   re returning
to our heritage as a builder. Only now, we   re
building to help our clients unlock the value of AI.
Businesses need an AI builder
Traditional service models are designed for
scalability. They prioritize operational
efficiency and linear growth. Today, these
business objectives are no less important.
They   re also no longer sufficient. Amid a
$5 trillion infrastructure investment where
intelligence will be embedded everywhere,
2025 Cognizant Annual Report
4


shareholder letter icon 4/17/2026 Letter Continued (Full PDF)
 

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