Cognizant Technology Solutions Corp 10-Q for FY2026 Q2

Cognizant Technology Solutions Corp (CTSH)

10-Q 2026-07-29 For: 2026-06-30

Added on July 29, 2026

About this 10-Q

Cognizant Technology Solutions Corp filed this 10-Q on July 29, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $5.48B; up 4.5% from $5.25B a year earlier
Net income: $636M; down 1.4% from net income of $645M a year earlier
Diluted EPS: $1.36; up 3.8% from $1.31 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	June 30, 2026
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						450,444,209


		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 June 30 , 2026 and December 31, 2025	4

	Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30 , 2026 and 2025	5

	Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended J une 30 , 2026 a nd 2025	6

	Consolidated Statements of Stockholders' Equity (Unaudited) for the Three Months Ended March 31, 2026 and 2025 and June 30, 2026 and 2025	7

	Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30 , 2026 and 2025	8

	Notes to Consolidated Financial Statements (Unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42

Item 4.	Controls and Procedures	43

PART II.	OTHER INFORMATION	44

Item 1.	Legal Proceedings	44

Item 1A.	Risk Factors	44

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44

Item 5.	Other Information	45

Item 6.	Exhibits	46

SIGNATURES		47


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
ASR			Accelerated Share Repurchase
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
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
Labor Code			Labor law reforms implemented by the Government of India effective November 21, 2025, including the Code on Social Security, 2020
NA			North America
Ninth Circuit			United States Court of Appeals for the Ninth Circuit
P&R			Products & Resources
Project Leap			Program introduced in Q2 2026 aimed at streamlining operations and enhancing productivity through AI-led efficiencies
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
Voluntary Attrition - Tech Services			Includes all voluntary separations with the exception of employees in our Intuitive Operations and Automation practice and certain categories of negotiated separations


(in millions, except par values)	June 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	1,038	$	1,901
Short-term investments	13		13
Trade accounts receivable, net	4,780		4,439
Other current assets	1,728		1,465
Total current assets	7,559		7,818
Property and equipment, net	981		933
Operating lease assets, net	555		573
Goodwill	8,083		7,106
Intangible assets, net	1,675		1,417
Deferred income tax assets, net	764		967
Long-term investments	106		111
Other noncurrent assets	1,102		1,767
Total assets	$	20,825	$	20,692
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	357	$	308
Deferred revenue	490		501
Short-term debt	33		33
Operating lease liabilities	145		153
Accrued expenses and other current liabilities	2,439		2,664
Total current liabilities	3,464		3,659
Deferred revenue, noncurrent	31		37
Operating lease liabilities, noncurrent	389		423
Deferred income tax liabilities, net	177		168
Long-term debt	1,527		543

Other noncurrent liabilities	775		847
Total liabilities	6,363		5,677
Commitments and contingencies (See Note 1 1)
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, 452 and 479 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	5		5
Additional paid-in capital	11		12
Retained earnings	14,647		15,158
Accumulated other comprehensive income (loss)	(201)		(160)
Total stockholders’ equity	14,462		15,015
Total liabilities and stockholders’ equity	$	20,825	$	20,692


(in millions, except per share data)	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues	$	5,481	$	5,245	$	10,894	$	10,360
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization expense shown separately below)	3,652		3,479		7,290		6,876
Selling, general and administrative expenses	728		810		1,519		1,601
Restructuring charges	84		—		84		—
Depreciation and amortization expense	143		139		284		275
(Gain) on sale of property and equipment	—		—		—		(62)
Income from operations	874		817		1,717		1,670
Other income (expense), net:
Interest income	18		23		40		53
Interest expense	(13)		(9)		(20)		(21)
Foreign currency exchange gains (losses), net	7		7		25		9
Other, net	(11)		4		(20)		3
Total other income (expense), net	1		25		25		44
Income before provision for income taxes	875		842		1,742		1,714
Provision for income taxes	(231)		(197)		(439)		(410)
Income (loss) from equity method investments	(8)		—		(5)		4
Net income	$	636	$	645	$	1,298	$	1,308
Basic earnings per share	$	1.36	$	1.31	$	2.76	$	2.65
Diluted earnings per share	$	1.36	$	1.31	$	2.75	$	2.65
Weighted average number of common shares outstanding - Basic	466		492		471		493
Dilutive effect of shares issuable under stock-based compensation plans	—		—		1		—
Weighted average number of common shares outstanding - Diluted	466		492		472		493


(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net income	$	636	$	645	$	1,298	$	1,308
Change in Accumulated other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(16)		197		(55)		300
Unrealized gains and losses on cash flow hedges	35		10		(30)		38
Changes in net defined benefit obligations	6		1		44		1

Other comprehensive income (loss)	25		208		(41)		339
Comprehensive income	$	661	$	853	$	1,257	$	1,647


(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, 2025	479	$	5	$	12	$	15,158	$	(160)	$	15,015
Net income	—	—		—		662		—		662
Other comprehensive income (loss)	—	—		—		—		(66)		(66)
Common stock issued, stock-based compensation plans	1	—		17		—		—		17
Stock-based compensation expense	—	—		46		—		—		46
Repurchases of common stock	(6)	—		(58)		(390)		—		(448)
Dividends declared, $0.33 per share	—	—		—		(158)		—		(158)
Balance, March 31, 2026	474	5		17		15,272		(226)		15,068
Net income	—	—		—		636		—		636
Other comprehensive income (loss)	—	—		—		—		25		25
Common stock issued, stock-based compensation plans	1	—		12		—		—		12
Stock-based compensation expense	—	—		53		—		—		53
Repurchases of common stock	(23)	—		(71)		(1,103)		—		(1,174)
Dividends declared, $0.33 per share	—	—		—		(158)		—		(158)
Balance, June 30, 2026	452	$	5	$	11	$	14,647	$	(201)	$	14,462


(in millions)	For the Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net income	$	1,298	$	1,308
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	284		275

Deferred income taxes	119		9
Stock-based compensation expense	99		90

Gain on sale of property and equipment	—		(62)
Other, net	14		(15)
Changes in operating assets and liabilities, net of effects of businesses acquired:
Trade accounts receivable, current	(274)		(320)
Other current and noncurrent assets	(219)		(60)
Accounts payable	29		(29)
Deferred revenues, current and noncurrent	(20)		(10)
Other current and noncurrent liabilities	(498)		(388)
Net cash provided by operating activities	832		798
Cash flows from investing activities:
Purchases of property and equipment	(175)		(144)
Proceeds from sale of property and equipment	—		70




Purchases of other investments	(51)		(16)
Proceeds from maturity or sale of other investments	51		1
Payments for business combinations, net of cash acquired	(1,334)		—
Net cash (used in) investing activities	(1,509)		(89)
Cash flows from financing activities:
Issuance of common stock under stock-based compensation plans	29		33


Repurchases of common stock	(1,607)		(577)
Repayment of Term Loan borrowings and finance lease obligations	(23)		(21)
Proceeds from borrowings under the revolving credit facility	1,000		—
Repayment of notes outstanding under the revolving credit facility	—		(300)
Dividends paid	(316)		(308)
Net cash (used in) financing activities	(917)		(1,173)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2)		29
(Decrease) in cash, cash equivalents and restricted cash	(1,596)		(435)
Cash, cash equivalents and restricted cash beginning of year	2,634		2,231
Cash and cash equivalents, end of period	$	1,038	$	1,796


Date Issued and Topic	Date Adopted and Method	Description	Impact
July 2025 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets	Adopted effective January 1, 2026 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.	Adoption did not have a significant impact on our consolidated financial statements.
September 2025 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software	Early adopted effective January 1, 2026 Prospective basis	The standard is intended to modernize the internal-use software guidance, making it easier to apply to various software development methods.	Adoption did not have a significant impact on our consolidated financial statements.
December 2025 Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities	Early adopted effective January 1, 2026 Prospective basis	The standard provides authoritative guidance for business entities receiving government grants, establishing rules for their recognition, measurement, presentation, and disclosure.	Adoption did not have a significant impact on our consolidated financial statements.


Date Issued and Topic	Effective Date	Description	Impact
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.
December 2025 Interim Reporting (Topic 270): Narrow-Scope Improvements	Interim reporting periods within annual reporting periods starting in 2028 Prospective basis	The standard clarifies the applicability of Topic 270, provides a comprehensive list of interim disclosures, and includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.	We are currently evaluating the impact on our interim disclosures.


	Three Months Ended June 30, 2026										Six Months Ended June 30, 2026

(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues
Geography:
North America	$	1,307	$	1,263	$	918	$	639	$	4,127	$	2,618	$	2,439	$	1,834	$	1,288	$	8,179
United Kingdom	60		165		151		116		492		117		336		315		233		1,001
Continental Europe	164		167		171		33		535		332		333		332		68		1,065
Europe - Total	224		332		322		149		1,027		449		669		647		301		2,066
Rest of World	41		138		82		66		327		84		269		162		134		649
Total	$	1,572	$	1,733	$	1,322	$	854	$	5,481	$	3,151	$	3,377	$	2,643	$	1,723	$	10,894

Service line:
Consulting and technology services	$	925	$	1,255	$	900	$	438	$	3,518	$	1,838	$	2,440	$	1,801	$	930	$	7,009
Outsourcing services	647		478		422		416		1,963		1,313		937		842		793		3,885
Total	$	1,572	$	1,733	$	1,322	$	854	$	5,481	$	3,151	$	3,377	$	2,643	$	1,723	$	10,894

Type of contract:
Time and materials	$	487	$	848	$	515	$	455	$	2,305	$	961	$	1,628	$	1,038	$	889	$	4,516
Fixed-price	803		825		718		344		2,690		1,609		1,633		1,431		741		5,414
Transaction or volume-based	282		60		89		55		486		581		116		174		93		964
Total	$	1,572	$	1,733	$	1,322	$	854	$	5,481	$	3,151	$	3,377	$	2,643	$	1,723	$	10,894


	Three Months Ended June 30, 2025										Six Months Ended June 30, 2025

(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues
Geography:
North America	$	1,298	$	1,096	$	918	$	600	$	3,912	$	2,628	$	2,139	$	1,829	$	1,170	$	7,766
United Kingdom	51		159		148		124		482		100		312		285		242		939
Continental Europe	166		160		159		35		520		326		307		312		68		1,013
Europe - Total	217		319		307		159		1,002		426		619		597		310		1,952
Rest of World	36		132		81		82		331		68		251		158		165		642
Total	$	1,551	$	1,547	$	1,306	$	841	$	5,245	$	3,122	$	3,009	$	2,584	$	1,645	$	10,360

Service line:
Consulting and technology services	$	908	$	1,099	$	918	$	464	$	3,389	$	1,778	$	2,119	$	1,805	$	913	$	6,615
Outsourcing services	643		448		388		377		1,856		1,344		890		779		732		3,745
Total	$	1,551	$	1,547	$	1,306	$	841	$	5,245	$	3,122	$	3,009	$	2,584	$	1,645	$	10,360

Type of contract:
Time and materials	$	495	$	812	$	580	$	454	$	2,341	$	976	$	1,576	$	1,136	$	888	$	4,576
Fixed-price	750		687		638		338		2,413		1,541		1,338		1,272		672		4,823
Transaction or volume-based	306		48		88		49		491		605		95		176		85		961
Total	$	1,551	$	1,547	$	1,306	$	841	$	5,245	$	3,122	$	3,009	$	2,584	$	1,645	$	10,360


(in millions)	3Cloud		Astreya		Total		Weighted Average Useful Life
Cash	$	3	$	31	$	34
Trade accounts receivable	26		45		71
Other current assets	2		24		26
Property and equipment and other noncurrent assets	2		18		20
Operating lease assets	—		2		2
Non-deductible goodwill	119		407		526
Tax-deductible goodwill	477		—		477
Customer relationship assets	130		250		380		9.2 years
Other definite-lived intangible assets	2		1		3		1.0 year


Other current liabilities	(30)		(32)		(62)
Deferred income tax liabilities, net	(3)		(68)		(71)
Other noncurrent liabilities	—		(13)		$	(13)
Purchase price, inclusive of contingent consideration1	$	728	$	665	$	1,393


(in millions)	2026

Beginning balance	$	—
Employee separation costs accrued	56
Payments made	(28)
Ending balance	$	28


	Location of Net (Losses) on Derivative Instruments	Amount of Net (Losses) on Derivative Instruments

(in millions)		2026		2025		2026		2025
Foreign exchange forward contracts – Not designated as hedging instruments	Foreign currency exchange gains (losses), net	$	(2)	$	(7)	$	—	$	(8)


(in millions)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	46	$	—	$	—	$	46
Time deposits	—		330		—		330

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


Other current assets:
Foreign exchange forward contracts	—		6		—		6


Other noncurrent assets:
Foreign exchange forward contracts	—		4		—		4
Accrued expenses and other current liabilities:
Foreign exchange forward contracts	—		(90)		—		(90)
Contingent consideration liabilities	—		—		(25)		(25)
Other noncurrent liabilities:
Foreign exchange forward contracts	—		(26)		—		(26)


	Three Months						Six 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	$	(21)	$	(6)	$	(27)	$	11	$	1	$	12
Change in foreign currency translation adjustments	(17)		1		(16)		(49)		(6)		(55)
Ending balance	$	(38)	$	(5)	$	(43)	$	(38)	$	(5)	$	(43)
Unrealized gains (losses) on cash flow hedges:
Beginning balance	$	(171)	$	43	$	(128)	$	(84)	$	21	$	(63)
Unrealized gains and (losses) arising during the period	4		(1)		3		(117)		29		(88)
Reclassifications of net losses to:
Cost of revenues	39		(10)		29		69		(17)		52
SG&A expenses	4		(1)		3		8		(2)		6
Net change	47		(12)		35		(40)		10		(30)
Ending balance	$	(124)	$	31	$	(93)	$	(124)	$	31	$	(93)
Changes in net defined benefit obligations:
Beginning balance	$	(92)	$	21	$	(71)	$	(149)	$	40	$	(109)
Gains and (losses), net of amortization	5		1		6		62		(18)		44
Ending balance	$	(87)	$	22	$	(65)	$	(87)	$	22	$	(65)
Accumulated other comprehensive income (loss):
Beginning balance	$	(284)	$	58	$	(226)	$	(222)	$	62	$	(160)
Other comprehensive income (loss)	35		(10)		25		(27)		(14)		(41)
Ending balance	$	(249)	$	48	$	(201)	$	(249)	$	48	$	(201)


	Three Months Ended June 30, 2026										Six Months Ended June 30, 2026
(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues	$	1,572	$	1,733	$	1,322	$	854	$	5,481	$	3,151	$	3,377	$	2,643	$	1,723	$	10,894
Less: Other segment items	1,260		1,456		1,157		731		4,604		2,524		2,848		2,300		1,502		9,174
Segment operating profit	$	312	$	277	$	165	$	123	$	877	$	627	$	529	$	343	$	221	$	1,720
Unallocated benefits/(costs)									(3)										(3)
Income from operations									$	874									$	1,717


	Three Months Ended June 30, 2025										Six Months Ended June 30, 2025
(in millions)	HS		FS		P&R		CMT		Total		HS		FS		P&R		CMT		Total
Revenues	$	1,551	$	1,547	$	1,306	$	841	$	5,245	$	3,122	$	3,009	$	2,584	$	1,645	$	10,360
Less: Other segment items	1,259		1,297		1,139		733		4,428		2,542		2,516		2,238		1,456		8,752
Segment operating profit	$	292	$	250	$	167	$	108	$	817	$	580	$	493	$	346	$	189	$	1,608
Unallocated benefits/(costs)									—										62
Income from operations									$	817									$	1,670


	As of
(in millions)	June 30, 2026		December 31, 2025
Long-lived Assets: (1)
North America (2)	$	331	$	300
Europe	66		67
Rest of World (3)	584		566
Total	$	981	$	933


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)	2026		Revenues	2025		Revenues	$		%
Revenues	$	5,481	100.0	$	5,245	100.0	$	236	4.5
Operating expenses:
Cost of revenues(a)	3,652		66.6	3,479		66.3	173		5.0
Selling, general and administrative expenses(a)	728		13.3	810		15.4	(82)		(10.1)
Restructuring charges	84		1.5	—		—	84		N/A
Depreciation and amortization expense	143		2.6	139		2.7	4		2.9

Income from operations and operating margin	874		15.9	817		15.6	57		7.0
Other income (expense), net	1			25			(24)		(96.0)
Income before provision for income taxes	875		16.0	842		16.1	33		3.9
Provision for income taxes	(231)			(197)			(34)		17.3
Income (loss) from equity method investments	(8)			—			(8)		N/A
Net income	$	636	11.6	$	645	12.3	$	(9)	(1.4)
Diluted EPS	$	1.36		$	1.31		$	0.05	3.8

Other Financial Information2
Adjusted Income from Operations and Adjusted Operating Margin	$	877	16.0	$	817	15.6	$	60	7.3
Adjusted Diluted EPS	$	1.37		$	1.31		$	0.06	4.6


Revenues - Reportable Business Segments and Geographic Markets


Q2 2026 as compared to Q2 2025			Increase
(Dollars in millions)	$	%			CC %3
Health Sciences			21			1.4	1.0
Financial Services			186			12.0	11.7
Products and Resources			16			1.2	0.7
CMT			13			1.5	1.4
Total revenues			$	236		4.5	4.1


Q2 2026 as compared to Q2 2025			Increase/(Decrease)
(Dollars in millions)	$	%			CC %3
North America			$	215		5.5	5.5
United Kingdom			10			2.1	1.5
Continental Europe			15			2.9	0.1
Europe - Total			25			2.5	0.8
Rest of World			(4)			(1.2)	(1.5)
Total revenues			$	236		4.5	4.1


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


(Dollars in millions)	2026		% of Revenues	2025		% of Revenues	Increase/(Decrease)
Total segment operating profit	$	877	16.0	$	817	15.6	$	60
Unallocated benefits/(costs)	(3)		(0.1)	—		—	(3)
Income from operations	$	874	15.9	$	817	15.6	$	57


	2026		% of Revenues	2025		% of Revenues
GAAP income from operations and operating margin	$	874	15.9	$	817	15.6
Project Leap(1)	84		1.5	—		—
India Defined Contribution Obligation(2)	(81)		(1.4)	—		—
Adjusted Income from Operations and Adjusted Operating Margin	$	877	16.0	$	817	15.6

GAAP diluted EPS	$	1.36		$	1.31
Effect of above adjustments, pre-tax	0.01			—
Non-operating foreign currency exchange (gains) losses, pre-tax(3)	(0.02)			(0.01)
Tax effect of above adjustments(4)	0.02			0.01

Adjusted Diluted EPS	$	1.37		$	1.31


YTD 2026 as compared to YTD 2025			Increase/(Decrease)
(Dollars in millions)	$	%			CC %6
Health Sciences			29			0.9	—
Financial Services			368			12.2	11.0
Products and Resources			59			2.3	0.9
CMT			78			4.7	3.9
Total revenues			$	534		5.2	4.0


(Dollars in millions, except per share amounts)	2026		% of Revenues	2025		% of Revenues
GAAP income from operations and operating margin	$	1,717	15.8	$	1,670	16.1
Project Leap(1)	84		0.8	—		—
India Defined Contribution Obligation(2)	(81)		(0.8)	—		—
(Gain) on sale of property and equipment(3)	—		—	(62)		(0.6)





Adjusted Income from Operations and Adjusted Operating Margin	$	1,720	15.8	$	1,608	15.5

GAAP diluted EPS	$	2.75		$	2.65
Effect of above adjustments, pre-tax	0.01			(0.13)
Non-operating foreign currency exchange (gains) losses, pre-tax (4)	(0.05)			(0.02)
Tax effect of above adjustments (5)	0.05			0.05

Adjusted Diluted EPS	$	2.76		$	2.55


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)

April 1, 2026 - April 30, 2026	—	—		—	1,491
May 1, 2026 - May 31, 2026
May 2026 ASR	7,798,030	(a)		7,798,030
Open market purchases	9,856,319	53.04		9,856,319	2,468
June 1, 2026 - June 30, 2026
May 2026 ASR	1,903,112	(a)		1,903,112
Open market purchases	2,915,315	44.55		2,915,315	2,338
Total	22,472,776	$	51.29	22,472,776