COGNIZANT TECHNOLOGY SOLUTIONS CORP

Previous wording

During the quarter ended June 30, 2025, revenues increased by $395 million as compared to the quarter ended June 30, 2024, representing growth of 8.1%, or 7.2% on a constant currency 1 basis. Our recently completed acquisition of Belcan contributed approximately 400 basis points to revenue growth. Additionally, revenues were positively impacted by growth in our Financial Services and Health Sciences segments, partially offset by weakness in our Products and Resources segment (excluding the impact of Belcan).

Current wording

During the quarter ended September 30, 2025, revenues increased by $371 million as compared to the quarter ended September 30, 2024, representing growth of 7.4%, or 6.5% on a constant currency 1 basis. Revenue growth was broad-based, led by North America. Additionally, our recently completed acquisition of Belcan contributed approximately 250 basis points to revenue growth.

Previous wording

Our GAAP operating margin and Adjusted Operating Margin 1 were both 15.6% for the quarter ended June 30, 2025, as there were no adjustments for unusual items to report in our calculation of Adjusted Operating Margin for that period. Our GAAP operating margin and Adjusted Operating Margin were 14.6% and 15.2%, respectively, for the quarter ended June 30, 2024. Our operating margin for the quarter ended June 30, 2025, as compared to the quarter ended June 30, 2024, was positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by increased compensation costs and the dilutive impact of the recently completed acquisition of Belcan. In addition, our GAAP operating margin for the quarter ended June 30, 2024 was negatively impacted by NextGen charges, which were excluded from our Adjusted Operating Margin.

Current wording

Our GAAP operating margin and Adjusted Operating Margin 1 were both 16.0% for the quarter ended September 30, 2025, as there were no adjustments for unusual items to report in our calculation of Adjusted Operating Margin for that period. Our GAAP operating margin and Adjusted Operating Margin were 14.6% and 15.3%, respectively, for the quarter ended September 30, 2024. Our operating margin for the quarter ended September 30, 2025, as compared to the quarter ended September 30, 2024, was positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by the dilutive impact of the recently completed acquisition of Belcan. In addition, our GAAP operating margin for the quarter ended September 30, 2024 was negatively impacted by NextGen charges, which were excluded from our Adjusted Operating Margin.

Previous wording

As a global professional services company, we compete on the basis of the knowledge, experience, insights, skills and talent of our employees and the value they can provide to our clients. We closely monitor attrition trends focusing on the metric that we believe is most relevant to our business. For the trailing twelve months ended June 30, 2025 our Voluntary Attrition - Tech Services was 15.2% as compared to 13.6% for the trailing twelve months ended June 30, 2024. We finished the second quarter of 2025 with approximately 343,800 employees as compared to 336,300 employees at the end of the second quarter of 2024.

Current wording

As a global professional services company, we compete on the basis of the knowledge, experience, insights, skills and talent of our employees and the value they can provide to our clients. We closely monitor attrition trends focusing on the metric that we believe is most relevant to our business. For the trailing twelve months ended September 30, 2025, our Voluntary Attrition - Tech Services was 14.5% as compared to 14.6% for the trailing twelve months ended September 30, 2024. We finished the third quarter of 2025 with approximately 349,800 employees as compared to 340,100 employees at the end of the third quarter of 2024.

Previous wording

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 approximately $400 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, we anticipate a one-time, non-cash tax expense of approximately $400 million in the third quarter of 2025. Other than this anticipated impact, we do not expect the OBBBA to significantly impact our effective income tax rate. Additionally, as a result of this repeal, we project the OBBBA will reduce our cash taxes by $200 million in 2025. These assessments are based upon our current interpretation of the OBBBA, which may change as a result of future clarifications or guidance.

Current wording

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 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 the third quarter of 2025 were reduced by approximately $150 million as compared to our initial cash tax projections prior to the repeal. An additional reduction of $50 million in cash taxes as compared to our initial cash tax projections prior to the repeal is expected during the fourth quarter of 2025. These assessments are based upon our current interpretation of the OBBBA, which may change as a result of future clarifications or guidance.

Previous wording

Revenues of $5,245 million across our business segments and geographies were as follows for the three months ended June 30, 2025:

Current wording

Revenues of $5,415 million across our business segments and geographies were as follows for the three months ended September 30, 2025:

Previous wording

• Revenue growth across all geographies was driven by our Financial Services and Health Sciences segments, which were positively impacted by the ramp up of several recently won large deals;

Current wording

• Revenue growth across all geographies was driven by our Financial Services and Health Sciences segments, which were positively impacted by the ramp up of several recently won large deals. Revenue growth within our Communications, Media and Technology segment was driven by clients in the North America region;

Previous wording

• Our acquisition of Belcan contributed 400 basis points of growth to overall revenue growth, including approximately 1,600 basis points of growth to our Products and Resources segment, primarily in North America and to a lesser extent in the United Kingdom;

Current wording

• Our acquisition of Belcan contributed approximately 250 basis points of growth to overall revenue growth, including approximately 900 basis points of growth to our Products and Resources segment, primarily in North America and to a lesser extent in the United Kingdom. The remaining growth in our Products and Resources segment was driven by the resale of third-party products, primarily in North America, in connection with our integrated offerings strategy.

Previous wording

Our cost of revenues consists primarily of salaries, incentive-based compensation, stock-based compensation expense, employee benefits, project-related immigration and travel for technical personnel, subcontracting and costs of third-party products and services relating to revenues. The increase, as a percentage of revenues, was driven by increased compensation costs, partially offset by operational efficiencies and the beneficial impact of foreign currency exchange rate movements.

Current wording

Our cost of revenues consists primarily of salaries, incentive-based compensation, stock-based compensation expense, employee benefits, project-related immigration and travel for technical personnel, subcontracting and costs of third-party products and services relating to revenues. The increase, as a percentage of revenues, was primarily driven by the impact of the resale of third-party products in connection with our integrated offerings strategy and the dilutive impact of the recently completed acquisition of Belcan, partially offset by operational efficiencies and the beneficial impact of foreign currency exchange rate movements.

Previous wording

Depreciation and amortization expense increased by 8.6% while remaining flat as a percentage of revenues during the second quarter of 2025 as compared to the second quarter of 2024. The increase was driven by amortization expense from intangible assets related to our recently completed acquisition of Belcan.

Current wording

Depreciation and amortization expense increased by 4.7% and decreased 0.1% as a percentage of revenues during the third quarter of 2025 as compared to the third quarter of 2024. The increase was driven by amortization expense from intangible assets related to our recently completed acquisition of Belcan.

Previous wording

Our GAAP and Adjusted Operating Margins 4 for the quarter ended June 30, 2025, as compared to the quarter ended June 30, 2024, were positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by increased compensation costs and the dilutive impact of the recently completed acquisition of Belcan. In addition, our GAAP operating margin for the quarter ended June 30, 2024 was negatively impacted by NextGen charges, which were excluded from our Adjusted Operating Margin.

Current wording

Our GAAP and Adjusted Operating Margins 4 for the quarter ended September 30, 2025, as compared to the quarter ended September 30, 2024, were positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by the dilutive impact of the recently completed acquisition of Belcan. In addition, our GAAP operating margin for the quarter ended September 30, 2024 was negatively impacted by NextGen charges, which were excluded from our Adjusted Operating Margin.

Previous wording

A predominant portion of our costs in India are denominated in the Indian rupee, representing approximately 23% of our global operating costs during the three months ended June 30, 2025. These costs are subject to foreign currency exchange rate fluctuations, which have an impact on our results of operations. We enter into foreign exchange derivative contracts to hedge certain Indian rupee denominated payments in India. These hedges are intended to mitigate the volatility of the changes in the exchange rate between the U.S. dollar and the Indian rupee. Net of the impact of the hedges, the depreciation of the Indian rupee positively impacted our operating margin for the three months ended June 30, 2025 by 38 basis points as compared to the three months ended June 30, 2024.

Current wording

A predominant portion of our costs in India are denominated in the Indian rupee, representing approximately 23% of our global operating costs during the three months ended September 30, 2025. These costs are subject to foreign currency exchange rate fluctuations, which have an impact on our results of operations. We enter into foreign exchange derivative contracts to hedge certain Indian rupee denominated payments in India. These hedges are intended to mitigate the volatility of the changes in the exchange rate between the U.S. dollar and the Indian rupee. Net of the impact of the hedges, the depreciation of the Indian rupee positively impacted our operating margin for the three months ended September 30, 2025 by 40 basis points as compared to the three months ended September 30, 2024.

Previous wording

Excluding the impact of applicable designated cash flow hedges, the depreciation of the Indian rupee against the U.S. dollar positively impacted our operating margin by 44 basis points during the three months ended June 30, 2025. Each additional 1.0% change in exchange rate between the Indian rupee and the U.S. dollar will have the effect of moving our operating margin by 17 basis points (excluding the impact of the hedges). The settlement of our cash flow hedges had a positive impact of 2 basis points on our operating margin during the three months ended June 30, 2025, compared to a positive impact of 8 basis points during the three months ended June 30, 2024.

Current wording

Excluding the impact of applicable designated cash flow hedges, the depreciation of the Indian rupee against the U.S. dollar positively impacted our operating margin by 70 basis points during the three months ended September 30, 2025. Each additional 1.0% change in exchange rate between the Indian rupee and the U.S. dollar will have the effect of moving our operating margin by 18 basis points (excluding the impact of the hedges). The settlement of our cash flow hedges had a negative impact of 20 basis points on our operating margin during the three months ended September 30, 2025, compared to a positive impact of 10 basis points during the three months ended September 30, 2024.

Previous wording

In the second quarter of 2025, segment operating margins across all our segments were positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by increased compensation costs. In the second quarter of 2025, segment operating profit in the Products and Resources segment was also negatively impacted by the dilutive impact of the Belcan acquisition.

Current wording

In the third quarter of 2025, segment operating margins across all our segments were positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements. Health Sciences segment operating profit in the third quarter of 2025 was positively impacted by reduced resales of third-party products in connection with our integrated offerings strategy. Financial Services segment operating profit in the third quarter of 2025 was negatively impacted by higher costs typical to the initial phases of several recently won large deals. Products and Resources segment operating profit in the third quarter of 2025 was negatively impacted by the dilutive impact of the Belcan acquisition and by resales of third-party products in connection with our integrated offerings strategy.

Previous wording

The foreign currency exchange gains were attributed to the remeasurement of net monetary assets and liabilities denominated in currencies other than the functional currencies of our subsidiaries. The losses 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 June 30, 2025, the notional value of our undesignated hedges was $940 million. Interest income declined for the three months ended June 30, 2025, driven by a mix of lower invested balances and lower yields as compared to the three months ended June 30, 2024.

Current wording

The foreign currency exchange 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 September 30, 2025, the notional value of our undesignated hedges was $770 million. Interest income declined for the three months ended September 30, 2025, primarily driven by lower yields as compared

Previous wording

The increase in net income was primarily driven by an increase in income from operations.

Current wording

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.

Previous wording

Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations exclude unusual items, such as the gain on sale of property and equipment in the first quarter of 2025 and NextGen charges in 2024. Our non-GAAP financial measure Adjusted Diluted EPS excludes unusual items, such as 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. For further detail on the gain on sale of property and equipment and the NextGen charges, see Note 1 and Note 3, respectively, to our unaudited consolidated financial statements. The income tax impact of each item excluded from Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period’s foreign currency exchange rates measured against the comparative period's reported revenues.

Current wording

Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations exclude unusual items, such as the gain on sale of property and equipment in the first quarter of 2025 and NextGen charges in 2024. 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. For further detail on the one-time income tax expense related to the enactment of the OBBBA, the gain on sale of property and equipment and NextGen charges, see Note 6, Note 1 and Note 3, respectively, to our unaudited consolidated financial statements. The income tax impact of each item excluded from Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period’s foreign currency exchange rates measured against the comparative period's reported revenues.

Previous wording

The following table sets forth, for the periods indicated, certain financial data for the six months ended June 30:

Current wording

The following table sets forth, for the periods indicated, certain financial data for the nine months ended September 30:

Previous wording

During the six months ended June 30, 2025, revenues increased by $750 million as compared to the six months ended June 30, 2024, representing growth of 7.8%, or 7.7% on a constant currency basis 5. Our recently completed acquisitions contributed approximately 400 basis points to revenue growth.

Current wording

During the nine months ended September 30, 2025, revenues increased by $1,121 million as compared to the nine months ended September 30, 2024, representing growth of 7.6%, or 7.3% on a constant currency basis 5. Revenue growth was broad-based, led by North America. Our recently completed acquisitions contributed approximately 350 basis points to revenue growth.

Previous wording

Revenues of $10,360 million across our business segments and geographies were as follows for the six months ended June 30, 2025:

Current wording

Revenues of $15,775 million across our business segments and geographies were as follows for the nine months ended September 30, 2025:

Previous wording

•Revenue growth across all geographies was driven by our Financial Services and Health Sciences segments, which were positively impacted by the ramp up of several recently won large deals;

Current wording

•Revenue growth across all geographies was driven by our Financial Services and Health Sciences segments, which were positively impacted by the ramp up of several recently won large deals. Revenue growth within our Communications, Media and Technology segment was driven by clients in the North America region;

Previous wording

•Recently completed acquisitions contributed 400 basis points of growth to the overall revenue growth, including approximately 1,550 basis points of growth to our Products and Resources segment, primarily in North America and to a lesser extent the United Kingdom;

Current wording

•Recently completed acquisitions contributed 350 basis points of growth to the overall revenue growth, including approximately 1,300 basis points of growth to our Products and Resources segment, primarily in North America and to a lesser extent the United Kingdom.

Previous wording

Our cost of revenues consists primarily of salaries, incentive-based compensation, stock-based compensation expense, employee benefits, project-related immigration and travel for technical personnel, subcontracting and costs of third-party products and services relating to revenues. The increase, as a percentage of revenues, was driven by increased compensation costs, partially offset by operational efficiencies and the beneficial impact of foreign currency exchange rate movements.

Current wording

Our cost of revenues consists primarily of salaries, incentive-based compensation, stock-based compensation expense, employee benefits, project-related immigration and travel for technical personnel, subcontracting and costs of third-party products and services relating to revenues. The increase, as a percentage of revenues, was driven by increased compensation costs and the dilutive impact of the recently completed acquisition of Belcan, partially offset by operational efficiencies and the beneficial impact of foreign currency exchange rate movements.

Previous wording

Depreciation and amortization expense increased by 6.2%, but remained flat as a percentage of revenues, during the six months ended June 30, 2025 as compared to the 2024 period. The increase was driven by amortization expense from intangible assets related to our recently completed acquisitions.

Current wording

Depreciation and amortization expense increased by 5.7%, but remained flat as a percentage of revenues, during the nine months ended September 30, 2025 as compared to the 2024 period. The increase was driven by amortization expense from intangible assets related to our recently completed acquisitions.

Previous wording

During the six months ended June 30, 2025, we realized a gain of $62 million on the sale of an office complex in India. For further detail see Note 1 to our unaudited consolidated financial statements.

Current wording

During the nine months ended September 30, 2025, we realized a gain of $62 million on the sale of an office complex in India. For further detail see Note 1 to our unaudited consolidated financial statements.

Previous wording

The increase in our 2025 GAAP operating margin and Adjusted Operating Margin 7 was primarily driven by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by the increased compensation costs and the dilutive impact of the recently completed acquisition of Belcan. In addition, our GAAP operating margin for 2025 was positively impacted by 60 basis points, or $62 million, from the gain on sale of property and equipment, and our GAAP operating margin for 2024 was negatively impacted by NextGen charges, both of which were excluded from our Adjusted Operating Margin.

Current wording

The increase in our 2025 GAAP operating margin and Adjusted Operating Margin 7 was primarily driven by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by the increased compensation costs and the dilutive impact of the recently completed acquisition of Belcan. In addition, our GAAP operating margin for 2025 was positively impacted by 40 basis points, or $62 million, from the gain on sale of property and equipment, and our GAAP operating margin for 2024 was negatively impacted by NextGen charges, both of which were excluded from our Adjusted Operating Margin.

Previous wording

Net of the impact of applicable designated cash flow hedges, the depreciation of the Indian rupee positively impacted our operating margin for the six months ended June 30, 2025 by 48 basis points as compared to the six months ended June 30, 2024. Excluding the impact of such hedges, the depreciation of the Indian rupee against the U.S. dollar positively impacted our operating margin by 59 basis points for the six months ended June 30, 2025. The settlement of our cash flow hedges had a negative impact of 7 basis points on our operating margin during the six months ended June 30, 2025, compared to a positive impact of 4 basis points during the 2024 period.

Current wording

Net of the impact of applicable designated cash flow hedges, the depreciation of the Indian rupee positively impacted our operating margin for the nine months ended September 30, 2025 by 45 basis points as compared to the nine months ended September 30, 2024. Excluding the impact of such hedges, the depreciation of the Indian rupee against the U.S. dollar positively impacted our operating margin by 65 basis points for the nine months ended September 30, 2025. The settlement of our cash flow hedges had a negative impact of 10 basis points on our operating margin during the nine months ended September 30, 2025, compared to a positive impact of 10 basis points during the 2024 period.

Previous wording

In 2025, segment operating margins across all our segments were positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by increased compensation costs. In 2025, segment operating profit in the Products and Resources segment was also negatively impacted by the dilutive impact of the Belcan acquisition.

Current wording

In 2025, segment operating margins across all our segments were positively impacted by net savings generated from our NextGen program, operational efficiencies and the beneficial impact of foreign currency exchange rate movements, partially offset by increased compensation costs. In 2025, segment operating profit in the Products and Resources segment was negatively impacted by the dilutive impact of the Belcan acquisition and by resales of third-party products in connection with our integrated offerings strategy.

Previous wording

Total segment operating profit and margin were as follows for the six months ended June 30:

Current wording

Total segment operating profit and margin were as follows for the nine months ended September 30:

Previous wording

The decrease in unallocated costs for six months ended June 30, 2025 as compared to June 30, 2024 was driven by the 2025 gain on sale of property and equipment and the absence of NextGen charges, partially offset by higher amortization of intangible assets and certain corporate costs.

Current wording

The decrease in unallocated costs for nine months ended September 30, 2025 as compared to September 30, 2024 was driven by the 2025 gain on sale of property and equipment and the absence of NextGen charges, partially offset by higher amortization of intangible assets and certain corporate costs.

Previous wording

The following table sets forth total other income (expense), net for the six months ended June 30:

Current wording

The following table sets forth total other income (expense), net for the nine months ended September 30:

Previous wording

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 and losses on foreign exchange forward contracts not designated as hedging instruments related to the realized and unrealized gains and losses on cont racts entered into to offset our foreign currency exposures.

Current wording

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 and losses on foreign exchange forward contracts not designated as hedging instruments related to the realized and unrealized gains and losses on cont racts entered into to offset our foreign currency exposures. Interest income declined in 2025 as compared to 2024, driven

Previous wording

The effective income tax rate in both periods reflects the benefits of discrete items related to U.S. state income taxes, which were larger during the 2024 period.

Current wording

The effective income tax rate for Q3 2025 was negatively impacted by the one-time, non-cash income tax expense of $390 million related to the enactment of the OBBBA. The effective income tax rate for 2024 reflects the benefits of the recognition of a $40 million deferred tax asset related to foreign tax credits as well as discrete items related to U.S. state income taxes.

Previous wording

The increase in net income was driven by an increase in income from operations, including the aforementioned gain on sale of property and equipment.

Current wording

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.

Previous wording

The following table presents a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure for the six months ended June 30:

Current wording

The following table presents a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure for the nine months ended September 30:

Previous wording

(1)During the six months ended June 30, 2025, we realized a gain of $62 million on the sale of an office complex in India. See Note 1 to our unaudited consolidated financial statements for additional information.

Current wording

(1)During the nine months ended September 30, 2025, we realized a gain of $62 million on the sale of an office complex in India. See Note 1 to our unaudited consolidated financial statements for additional information.

Previous wording

Our cash generated from operations has historically been the primary source of liquidity to fund operations and investments to grow our business. As of June 30, 2025, we had cash, cash equivalents and short-term investments of $1,808 million and available capacity under our credit facility of $1.85 billion.

Current wording

Our cash generated from operations has historically been the primary source of liquidity to fund operations and investments to grow our business. As of September 30, 2025, we had cash, cash equivalents and short-term investments of $2,354 million and available capacity under our credit facility of $1.85 billion.

Previous wording

The following table provides a summary of cash flows for the six months ended June 30:

Current wording

The following table provides a summary of cash flows for the nine months ended September 30:

Previous wording

The increase in cash provided by operating activities for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily driven by the $360 million payment we made in January 2024 in relation to our dispute with the ITD (see Note 6 to our unaudited consolidated financial statements), which reduced cash from operating activities in 2024.

Current wording

The increase in cash provided by operating activities for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 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 (see Note 6 to our unaudited consolidated financial statements), which reduced cash from operating activities in 2024.

Previous wording

We monitor turnover, aging and the collection of accounts receivable by client. Our DSO calculation includes receivables, net of allowance for doubtful accounts, and contract assets, reduced by the uncollected portion of deferred revenue. Our DSO was 83 days as of June 30, 2025, an increase of 5 days from 78 days as of December 31, 2024. Our DSO was 80 days as of June 30, 2024, an increase of 3 days from 77 days as of December 31, 2023.

Current wording

We monitor turnover, aging and the collection of accounts receivable by client. Our DSO calculation includes receivables, net of allowance for doubtful accounts, and contract assets, reduced by the uncollected portion of deferred revenue. Our DSO was 82 days as of September 30, 2025, an increase of 4 days from 78 days as of December 31, 2024. Our DSO was 81 days as of September 30, 2024, an increase of 4 days from 77 days as of December 31, 2023.

Previous wording

The cash used in investing activities for the six months ended June 30, 2025, was driven by purchases of property and equipment, partially offset by the proceeds from the sale of an office complex in India. The cash used in investing activities for the six months ended June 30, 2024, was driven by payments for business combinations and purchases of property and equipment, partially offset by net maturities of investments.

Current wording

The decrease in cash used in investing activities for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was driven by payments for business 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.