Cognizant Technology Solutions Corp 10-Q for FY2025 Q3

Cognizant Technology Solutions Corp (CTSH)

10-Q 2025-10-29 For: 2025-09-30

Added on April 12, 2026

About this 10-Q

Cognizant Technology Solutions Corp filed this 10-Q on October 29, 2025, covering the quarter ended September 30, 2025 (FY2025 Q3).

Headline figures

Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $5.42B; up 7.4% from $5.04B a year earlier
Net income: $274M; down 52.9% from net income of $582M a year earlier
Diluted EPS: $0.56; down 52.1% from $1.17 a year earlier

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☒	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended	September 30, 2025
or
☐	Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from to


Delaware									13-3728359
(State or Other Jurisdiction of Incorporation or Organization)									(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share	CTSH	The Nasdaq Stock Market LLC


Large Accelerated Filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


Class						Number of Shares
Class A Common Stock, par value $0.01 per share						482,646,473


		Page
GLOSSARY		1

FORWARD LOOKING STATEMENTS		2

PART I.	FINANCIAL INFORMATION	4

Item 1.	Financial Statements	4

	Consolidated Statements of Financial Position (Unaudited) as of September 30, 2025 and December 31, 2024	4

	Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	5

	Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	6

	Consolidated Statements of Stockholders' Equity (Unaudited) for the Three Months Ended March 31, 2025 and 2024, June 30, 2025 and 2024 and September 30, 2025 and 2024	7

	Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2025 and 2024	9

	Notes to Consolidated Financial Statements (Unaudited)	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40

Item 4.	Controls and Procedures	40

PART II.	OTHER INFORMATION	41

Item 1.	Legal Proceedings	41

Item 1A.	Risk Factors	41

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41

Item 5.	Other Information	42

Item 6.	Exhibits	43

SIGNATURES		44


Defined Term			Definition
10b5-1 Plan			Trading plan adopted pursuant to Rule 10b5-1 under the Exchange Act
Adjusted Diluted EPS			Adjusted diluted earnings per share
AI			Artificial intelligence
ASC			Accounting Standards Codification
CC			Constant Currency
CE			Continental Europe
CITA			Commissioner of Income Tax (Appeals) in India
CMT			Communications, Media and Technology
CODM			Chief Operating Decision Maker
Credit Agreement			Credit agreement with a commercial bank syndicate dated April 18, 2024, as amended
CTS India			Our principal operating subsidiary in India
DSO			Days Sales Outstanding
DTSA			Defend Trade Secrets Act
EPS			Earnings per share
ESG			Environmental, social and corporate governance
EU			European Union
Exchange Act			Securities Exchange Act of 1934, as amended
FS			Financial Services
GAAP			Generally Accepted Accounting Principles in the United States of America
GenAI			Generative artificial intelligence
HS			Health Sciences
High Court			Madras, India High Court
India Defined Contribution Obligation			Certain statutory defined contribution obligations of employees and employers in India
IP			Intellectual property
ITAT			Income Tax Appellate Tribunal in India
ITD			Indian Income Tax Department
NA			North America
NextGen program			Our 2023-2024 program to simplify our operating model, optimize corporate functions and consolidate and realign office space
Ninth Circuit			United States Court of Appeals for the Ninth Circuit
OBBBA			One Big Beautiful Bill Act
P&R			Products & Resources
R&E			Research and experimental
Recently completed acquisitions			Acquisitions that were completed in the 12 months preceding the beginning of the reporting period (in order to identify the impact of such acquisitions for the first twelve months of ownership)
RoW			Rest of World
SCI			Supreme Court of India
SEC			United States Securities and Exchange Commission
Second Circuit			United States Court of Appeals for the Second Circuit
SG&A			Selling, general and administrative
Syntel			Syntel Sterling Best Shores Mauritius Ltd.
Term Loan			Unsecured term loan under the Credit Agreement
Title VII			Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.
TriZetto			The TriZetto Group, Inc., now known as Cognizant Technology Software Group, Inc.
UK			United Kingdom
USDC-CDCA			United States District Court for the Central District of California
USDC-NJ			United States District Court for the District of New Jersey
USDC-SDNY			United States District Court for the Southern District of New York


(in millions, except par values)	September 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	2,341	$	2,231
Short-term investments	13		12
Trade accounts receivable, net	4,391		4,059
Other current assets	1,349		1,202
Total current assets	8,094		7,504
Property and equipment, net	949		994
Operating lease assets, net	578		552
Goodwill	7,100		6,953
Intangible assets, net	1,472		1,599
Deferred income tax assets, net	844		1,248
Long-term investments	107		90
Other noncurrent assets	990		1,026
Total assets	$	20,134	$	19,966
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	284	$	340
Deferred revenue	384		450
Short-term debt	33		33
Operating lease liabilities	154		152
Accrued expenses and other current liabilities	2,578		2,610
Total current liabilities	3,433		3,585
Deferred revenue, noncurrent	35		30
Operating lease liabilities, noncurrent	432		420
Deferred income tax liabilities, net	168		154
Long-term debt	551		875

Other noncurrent liabilities	618		494
Total liabilities	5,237		5,558
Commitments and contingencies (See Note 10)
Stockholders’ equity:
Preferred stock, $0.10 par value, 15 shares authorized, none issued	—		—
Class A common stock, $0.01 par value, 1,000 shares authorized, 483 and 495 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively	5		5
Additional paid-in capital	14		13
Retained earnings	14,942		14,686
Accumulated other comprehensive income (loss)	(64)		(296)
Total stockholders’ equity	14,897		14,408
Total liabilities and stockholders’ equity	$	20,134	$	19,966


(in millions, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues	$	5,415	$	5,044	$	15,775	$	14,654
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization expense shown separately below)	3,581		3,311		10,457		9,661
Selling, general and administrative expenses	833		833		2,434		2,379
Restructuring charges	—		33		—		85
Depreciation and amortization expense	135		129		410		388
(Gain) on sale of property and equipment	—		—		(62)		—
Income from operations	866		738		2,536		2,141
Other income (expense), net:
Interest income	25		31		78		91
Interest expense	(8)		(14)		(29)		(35)
Foreign currency exchange gains (losses), net	4		(8)		13		(1)
Other, net	—		1		3		2
Total other income (expense), net	21		10		65		57
Income before provision for income taxes	887		748		2,601		2,198
Provision for income taxes	(613)		(170)		(1,023)		(514)
Income (loss) from equity method investments	—		4		4		10
Net income	$	274	$	582	$	1,582	$	1,694
Basic earnings per share	$	0.56	$	1.17	$	3.22	$	3.41
Diluted earnings per share	$	0.56	$	1.17	$	3.22	$	3.41
Weighted average number of common shares outstanding - Basic	486		496		491		497
Dilutive effect of shares issuable under stock-based compensation plans	1		—		—		—
Weighted average number of common shares outstanding - Diluted	487		496		491		497


(in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income	$	274	$	582	$	1,582	$	1,694
Change in Accumulated other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(41)		206		259		132
Unrealized gains and losses on cash flow hedges	(66)		(14)		(28)		4
Unrealized gains and losses on defined benefit plans	—		—		1		—

Other comprehensive income (loss)	(107)		192		232		136
Comprehensive income	$	167	$	774	$	1,814	$	1,830


(in millions, except per share data)	Class A Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders' Equity
	Shares	Amount
Balance, December 31, 2024	495	$	5	$	13	$	14,686	$	(296)	$	14,408
Net income	—	—		—		663		—		663
Other comprehensive income (loss)	—	—		—		—		131		131
Common stock issued, stock-based compensation plans	1	—		19		—		—		19
Stock-based compensation expense	—	—		42		—		—		42
Repurchases of common stock	(3)	—		(55)		(155)		—		(210)
Dividends declared, $0.31 per share	—	—		—		(154)		—		(154)
Balance, March 31, 2025	493	5		19		15,040		(165)		14,899
Net income	—	—		—		645		—		645
Other comprehensive income (loss)	—	—		—		—		208		208
Common stock issued, stock-based compensation plans	—	—		14		—		—		14
Stock-based compensation expense	—	—		48		—		—		48
Repurchases of common stock	(4)	—		(67)		(305)		—		(372)
Dividends declared, $0.31 per share	—	—		—		(154)		—		(154)
Balance, June 30, 2025	489	5		14		15,226		43		15,288
Net income	—	—		—		274		—		274
Other comprehensive income (loss)	—	—		—		—		(107)		(107)
Common stock issued, stock-based compensation plans	1	—		13		—		—		13
Stock-based compensation expense	—	—		47		—		—		47
Repurchases of common stock	(7)	—		(60)		(406)		—		(466)
Dividends declared, $0.31 per share	—	—		—		(152)		—		(152)
Balance, September 30, 2025	483	$	5	$	14	$	14,942	$	(64)	$	14,897


(in millions)	For the Nine Months Ended September 30,
	2025		2024
Cash flows from operating activities:
Net income	$	1,582	$	1,694
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	410		399

Deferred income taxes	415		(202)
Stock-based compensation expense	137		134

Gain on sale of property and equipment	(62)		—
Other, net	(3)		23
Changes in assets and liabilities, net of effects of businesses acquired:
Trade accounts receivable, current	(322)		(166)
Other current and noncurrent assets	1		(512)
Accounts payable	(35)		(29)
Deferred revenues, current and noncurrent	(64)		(56)
Other current and noncurrent liabilities	(34)		(81)
Net cash provided by operating activities	2,025		1,204
Cash flows from investing activities:
Purchases of property and equipment	(211)		(214)
Proceeds from sale of property and equipment	70		—



Proceeds from maturity of held-to-maturity investment securities	—		3
Purchases of other investments	(17)		(1)
Proceeds from maturity or sale of other investments	3		260
Payments for business combinations, net of cash acquired	—		(1,615)
Net cash (used in) investing activities	(155)		(1,567)
Cash flows from financing activities:
Issuance of common stock under stock-based compensation plans	46		49


Repurchases of common stock	(1,040)		(451)
Repayment of Term Loan borrowings and earnout and finance lease obligations	(32)		(61)
Proceeds from borrowings under the revolving credit facility	—		600
Repayment of notes outstanding under the revolving credit facility	(300)		—
Dividends paid	(459)		(450)
Net cash (used in) financing activities	(1,785)		(313)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	25		(28)
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	110		(704)
Cash, cash equivalents and restricted cash and cash equivalents beginning of year	2,231		2,717
Cash and cash equivalents, end of period	$	2,341	$	2,013


Date Issued and Topic	Effective Date	Description	Impact
December 2023 Income Taxes (Topic 740): Improvements to Income Tax Disclosures	Annual period starting in 2025 Prospective basis	The standard requires enhanced income tax disclosures primarily related to the income tax rate reconciliation and income taxes paid information.	We are currently preparing to implement the new disclosure requirements in our 2025 annual financial statements.
November 2024 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)	Annual period starting in 2027 and interim periods starting in 2028 Prospective basis	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 on our disclosures.
July 2025 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets	Annual reporting periods starting in 2026, and interim reporting periods within those annual reporting periods Prospective basis	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.
September 2025 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software	Annual reporting periods starting in 2028, and interim reporting periods within those annual reporting periods Prospective basis	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.


Cognizant Technology Solutions			10			September 30, 2025 Form 10-Q


	Three Months Ended September 30, 2025										Nine Months Ended September 30, 2025

(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues
Geography:
North America	$	1,331	$	1,115	$	978	$	604	$	4,028	$	3,959	$	3,254	$	2,807	$	1,774	$	11,794
United Kingdom	56		166		156		125		503		156		478		441		367		1,442
Continental Europe	174		164		167		34		539		500		471		479		102		1,552
Europe - Total	230		330		323		159		1,042		656		949		920		469		2,994
Rest of World	43		133		82		87		345		111		384		240		252		987
Total	$	1,604	$	1,578	$	1,383	$	850	$	5,415	$	4,726	$	4,587	$	3,967	$	2,495	$	15,775

Service line:
Consulting and technology services	$	929	$	1,118	$	981	$	466	$	3,494	$	2,707	$	3,237	$	2,786	$	1,379	$	10,109
Outsourcing services	675		460		402		384		1,921		2,019		1,350		1,181		1,116		5,666
Total	$	1,604	$	1,578	$	1,383	$	850	$	5,415	$	4,726	$	4,587	$	3,967	$	2,495	$	15,775

Type of contract:
Time and materials	$	506	$	829	$	589	$	446	$	2,370	$	1,482	$	2,405	$	1,725	$	1,334	$	6,946
Fixed-price	791		697		704		355		2,547		2,332		2,035		1,976		1,027		7,370
Transaction or volume-based	307		52		90		49		498		912		147		266		134		1,459
Total	$	1,604	$	1,578	$	1,383	$	850	$	5,415	$	4,726	$	4,587	$	3,967	$	2,495	$	15,775


	Three Months Ended September 30, 2024										Nine Months Ended September 30, 2024

(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues
Geography:
North America	$	1,295	$	1,048	$	828	$	564	$	3,735	$	3,756	$	3,064	$	2,362	$	1,694	$	10,876
United Kingdom	47		147		157		131		482		138		428		415		401		1,382
Continental Europe	143		156		154		32		485		413		457		447		121		1,438
Europe - Total	190		303		311		163		967		551		885		862		522		2,820
Rest of World	29		135		89		89		342		84		369		263		242		958
Total	$	1,514	$	1,486	$	1,228	$	816	$	5,044	$	4,391	$	4,318	$	3,487	$	2,458	$	14,654

Service line:
Consulting and technology services	$	895	$	1,051	$	833	$	447	$	3,226	$	2,560	$	3,025	$	2,297	$	1,373	$	9,255
Outsourcing services	619		435		395		369		1,818		1,831		1,293		1,190		1,085		5,399
Total	$	1,514	$	1,486	$	1,228	$	816	$	5,044	$	4,391	$	4,318	$	3,487	$	2,458	$	14,654

Type of contract:
Time and materials	$	499	$	833	$	511	$	439	$	2,282	$	1,486	$	2,421	$	1,428	$	1,336	$	6,671
Fixed-price	738		608		627		327		2,300		2,111		1,761		1,803		994		6,669
Transaction or volume-based	277		45		90		50		462		794		136		256		128		1,314
Total	$	1,514	$	1,486	$	1,228	$	816	$	5,044	$	4,391	$	4,318	$	3,487	$	2,458	$	14,654


(in millions)	2025		2024
Beginning balance	$	209	$	245
Costs capitalized	31		43
Amortization expense	(59)		(67)
Impairment charge	(7)		(2)
Ending balance	$	174	$	219


	Location of Net Gains (Losses) on Derivative Instruments	Amount of Net Gains (Losses) on Derivative Instruments
		Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2025		2024		2025		2024
Foreign exchange forward contracts – Not designated as hedging instruments	Foreign currency exchange gains (losses), net	$	5	$	14	$	(3)	$	42


(in millions)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	30	$	—	$	—	$	30
Time deposits	—		688		—		688

Short-term investments:
Time deposits	—		1		—		1
Equity investment security	12		—		—		12


Other current assets:
Foreign exchange forward contracts	—		1		—		1




Accrued expenses and other current liabilities:
Foreign exchange forward contracts	—		(55)		—		(55)

Other noncurrent liabilities:
Foreign exchange forward contracts	—		(18)		—		(18)


	Three Months						Nine Months
(in millions)	Before Tax Amount		Tax Effect		Net of Tax Amount		Before Tax Amount		Tax Effect		Net of Tax Amount
Foreign currency translation adjustments:
Beginning balance	$	40	$	6	$	46	$	(261)	$	7	$	(254)
Change in foreign currency translation adjustments	(38)		(3)		(41)		263		(4)		259
Ending balance	$	2	$	3	$	5	$	2	$	3	$	5
Unrealized gains (losses) on cash flow hedges:
Beginning balance	$	17	$	(4)	$	13	$	(34)	$	9	$	(25)
Unrealized (losses) arising during the period	(100)		25		(75)		(56)		14		(42)
Reclassifications of net losses to:
Cost of revenues	11		(3)		8		17		(4)		13
SG&A expenses	1		—		1		2		(1)		1
Net change	(88)		22		(66)		(37)		9		(28)
Ending balance	$	(71)	$	18	$	(53)	$	(71)	$	18	$	(53)
Unrealized gains (losses) on defined benefit plans:
Beginning balance	$	(19)	$	3	$	(16)	$	(20)	$	3	$	(17)
Amortization of loss on defined benefit plans	—		—		—		1		—		1
Ending balance	$	(19)	$	3	$	(16)	$	(19)	$	3	$	(16)
Accumulated other comprehensive income (loss):
Beginning balance	$	38	$	5	$	43	$	(315)	$	19	$	(296)
Other comprehensive income (loss)	(126)		19		(107)		227		5		232
Ending balance	$	(88)	$	24	$	(64)	$	(88)	$	24	$	(64)


	Three Months Ended September 30, 2025										Nine Months Ended September 30, 2025
(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues	$	1,604	$	1,578	$	1,383	$	850	$	5,415	$	4,726	$	4,587	$	3,967	$	2,495	$	15,775
Less: other segment items	1,290		1,316		1,192		735		4,533		3,803		3,817		3,384		2,173		13,177
Segment operating profit	$	314	$	262	$	191	$	115	$	882	$	923	$	770	$	583	$	322	$	2,598
Less: unallocated costs									16										62
Income from operations									$	866									$	2,536


	Three Months Ended September 30, 2024										Nine Months Ended September 30, 2024
(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues	$	1,514	$	1,486	$	1,228	$	816	$	5,044	$	4,391	$	4,318	$	3,487	$	2,458	$	14,654
Less: other segment items	1,261		1,235		1,027		714		4,237		3,602		3,651		2,926		2,177		12,356
Segment operating profit	$	253	$	251	$	201	$	102	$	807	$	789	$	667	$	561	$	281	$	2,298
Less: unallocated costs									69										157
Income from operations									$	738									$	2,141


	As of
(in millions)	September 30, 2025		December 31, 2024
Long-lived Assets: (1)
North America(2)	$	311	$	338
Europe	70		72
Rest of World (3)	568		584
Total	$	949	$	994


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.


			% of			% of	Increase / Decrease
(Dollars in millions, except per share data)	2025		Revenues	2024		Revenues	$		%
Revenues	$	5,415	100.0	$	5,044	100.0	$	371	7.4
Operating expenses:
Cost of revenues(a)	3,581		66.1	3,311		65.6	270		8.2
Selling, general and administrative expenses(a)	833		15.4	833		16.5	—		—
Restructuring charges	—		—	33		0.7	(33)		(100.0)
Depreciation and amortization expense	135		2.5	129		2.6	6		4.7

Income from operations and operating margin	866		16.0	738		14.6	128		17.3
Other income (expense), net	21			10			11		110.0
Income before provision for income taxes	887		16.4	748		14.8	139		18.6
Provision for income taxes	(613)			(170)			(443)		260.6
Income (loss) from equity method investments	—			4			(4)		(100.0)
Net income	$	274	5.1	$	582	11.5	$	(308)	(52.9)
Diluted EPS	$	0.56		$	1.17		$	(0.61)	(52.1)

Other Financial Information2
Adjusted Income from Operations and Adjusted Operating Margin	$	866	16.0	$	771	15.3	$	95	12.3
Adjusted Diluted EPS	$	1.39		$	1.25		$	0.14	11.2


Revenues - Reportable Business Segments and Geographic Markets


Q3 2025 as compared to Q3 2024			Increase
(Dollars in millions)	$	%			CC %3
Health Sciences			90			5.9	5.1
Financial Services			92			6.2	5.4
Products and Resources			155			12.6	11.4
CMT			34			4.2	3.6
Total revenues			$	371		7.4	6.5


SG&A Expenses (Exclusive of Depreciation and Amortization Expense)


(Dollars in millions)	2025		% of Revenues	2024		% of Revenues	Increase/(Decrease)
Total segment operating profit	$	882	16.3	$	807	16.0	$	75
Less: unallocated costs	16		0.3	69		1.4	(53)
Income from operations	$	866	16.0	$	738	14.6	$	128


	2025		% of Revenues	2024		% of Revenues
GAAP income from operations and operating margin	$	866	16.0	$	738	14.6

NextGen charges(1)	—		—	33		0.7
Adjusted Income from Operations and Adjusted Operating Margin	$	866	16.0	$	771	15.3

GAAP diluted EPS	$	0.56		$	1.17
Effect of above adjustments, pre-tax	—			0.07
Non-operating foreign currency exchange (gains) losses, pre-tax (2)	(0.01)			0.02
Tax effect of above adjustments(3)	0.04			(0.01)
One-time income tax expense related to the enactment of the OBBBA (4)	0.80			—
Adjusted Diluted EPS	$	1.39		$	1.25


YTD 2025 as compared to YTD 2024			Increase
(Dollars in millions)	$	%			CC %6
Health Sciences			335			7.6	7.2
Financial Services			269			6.2	5.9
Products and Resources			480			13.8	13.2
CMT			37			1.5	1.3
Total revenues			$	1,121		7.6	7.3


(Dollars in millions, except per share amounts)	2025		% of Revenues	2024		% of Revenues
GAAP income from operations and operating margin	$	2,536	16.1	$	2,141	14.6
(Gain) on sale of property and equipment(1)	(62)		(0.4)	—		—
NextGen charges (2)	—		—	85		0.6





Adjusted Income from Operations and Adjusted Operating Margin	$	2,474	15.7	$	2,226	15.2

GAAP diluted EPS	$	3.22		$	3.41
Effect of above adjustments, pre-tax	(0.13)			0.17
Non-operating foreign currency exchange (gains) losses, pre-tax (3)	(0.03)			—
Tax effect of above adjustments (4)	0.08			(0.03)
One-time income tax expense related to the enactment of the OBBBA (5)	0.79			—
Adjusted Diluted EPS	$	3.93		$	3.55


Item 3. Quantitative and Qualitative Disclosures about Market Risk.


Month	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (in millions)
July 1, 2025 - July 31, 2025	643,440	$	77.71	643,440	$	2,643
August 1, 2025 - August 31, 2025	2,831,812	70.12		2,831,812	2,445
September 1, 2025 - September 30, 2025	2,864,442	70.32		2,864,442	2,243
Total	6,339,694	$	70.98	6,339,694