Summary of Cognizant Technology Solutions Conference Call Company Overview - **Company**: Cognizant Technology Solutions (NasdaqGS: CTSH) - **Event**: Goldman Sachs Humanitopian Technology Conference - **Date**: September 10, 2025 Key Industry Insights - **Macro Environment**: Current period characterized by macro volatility, with rapid policy shifts and fluctuating economic indicators [3][4] - **Client Spending Trends**: Shift from cost-cutting to innovation in sectors like banking and financial services, with a year-on-year growth of 6% to 7% for Cognizant [3][4] - **Software Development Productivity**: Significant increase in productivity, with 30% of code now written by machines, up from 18% [4][5] Core Business Strategies - **Agentic Development Cycles**: Emphasis on agentic cycles as a larger growth opportunity compared to traditional software development cycles, with potential for 10x growth [10][17] - **Cost Savings and Innovation**: Clients are using savings from productivity improvements to fund AI and innovation initiatives rather than reducing budgets [4][17] - **New Labor Pools**: The integration of agentic capital with human capital is expected to trigger a new outsourcing cycle, unlocking new labor pools [14][15] Financial Performance and Projections - **Large Deals**: Cognizant has secured multiple large deals, including two billion-dollar contracts last quarter, and consistently tracks 55 to 60 deals over $100 million [5][19] - **BPO Growth**: Business Process Outsourcing (BPO) services have become the fastest-growing service line, contrary to previous expectations of decline [19][20] - **EPS Growth**: Projected EPS growth of 7% to 10% for the year, with a focus on maintaining margin expansion [30] Market Opportunities - **Healthcare Sector**: Significant opportunities in healthcare due to increased administrative loads and the potential for AI-driven proactive care solutions [23] - **Manufacturing Sector**: While not a primary focus, there are opportunities for growth in manufacturing, which requires external catalysts for innovation [24] - **Geographic Expansion**: Cognizant is looking to diversify revenue sources outside the U.S. and expand into industries beyond BFSI and healthcare [31] Competitive Positioning - **Investment in AI**: Heavy investments in AI productivity tools have positioned Cognizant favorably among peers, moving from the bottom to the top of the competitive pack [27][28] - **M&A Strategy**: Future acquisitions will focus on AI-led assets and expanding capabilities in underrepresented industries [31][36] Challenges and Considerations - **Macro Dependency**: Future spending cycles are contingent on macroeconomic conditions, particularly in triggering CapEx for AI [40][41] - **Vendor Consolidation**: Cognizant is displacing vendors that lack effective AI capabilities, creating opportunities for consolidation [46] Conclusion Cognizant Technology Solutions is navigating a complex macro environment while capitalizing on productivity gains through AI and agentic development cycles. The company is poised for growth through strategic investments, large deal acquisitions, and a focus on emerging market opportunities, particularly in healthcare and manufacturing.

Financial Data and Key Metrics Changes - In 2024, the company returned $1.2 billion to shareholders and achieved revenue growth of 7.5% year over year in Q1 2025, or 8.2% in constant currency [7][8] - Adjusted earnings per share increased year over year for the sixth consecutive quarter in Q1 2025 [8] - The company expects to increase shareholder returns to $1.7 billion in 2025 [21] Business Line Data and Key Metrics Changes - The company signed 29 large deals in 2024, up from 17 the previous year, indicating a strong demand for its services [7] - Client Net Promoter scores are near all-time highs, and employee engagement scores are well above global and IT industry benchmarks [10] Market Data and Key Metrics Changes - The company reported that over 72% of its global employees are based in India, which may influence operational strategies [46] Company Strategy and Development Direction - The company is focusing on AI-powered software-led engineering and has invested in platforms like NeuroSuite and FlowSource [12] - A dual transformation strategy is being pursued, emphasizing hyper productivity from AI and innovation from intelligent systems [12] - The company aims to broaden its portfolio and deepen its industry focus while fostering a culture that attracts and develops talent [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the near-term macro environment is uncertain but remains focused on building a long-term advantage [22] - The company is committed to investing in each geography based on growth needs and market conditions [48] Other Important Information - The company has launched a company-wide cost discipline initiative and modernized operations to better serve clients globally [9] - The Synapse program has trained over 400,000 individuals, with a goal of reaching 1 million [16] Q&A Session Summary Question: Will tariffs have any impact on CTSH? What percent of CTSH employees are in India? - The CFO stated that tariffs do not directly impact the services business, but there may be secondary effects on certain industries [45] - Over 72% of the company's employees are based in India [46] Question: Why did Zane Abdallah and Leo McKay receive more than 50 million against votes each in 2024? - The company does not have visibility into why shareholders vote against certain directors but noted that all directors received over 85% support [47] Question: How much investment will be in the US, and will the employee raise be better than the 1% policy from last year? - The CFO mentioned that investment decisions will be based on growth needs and market conditions, and the 2025 compensation raise approach has not yet been finalized [48][49]

Summary of Cognizant Technology Solutions (CTSH) FY Conference Call Company Overview - **Company**: Cognizant Technology Solutions (CTSH) - **Date of Conference**: May 15, 2025 - **Key Speakers**: Jatin Dalal (CFO), Tyler Scott (Investor Relations) Key Points Company Culture and Strategy - Cognizant has a strong culture of customer centricity deeply embedded in its DNA, which is evident across all teams [4][5] - The organization demonstrates a keen willingness to win, focusing on understanding client ecosystems and delivering high-quality solutions rather than competing solely on price [5][6] - Cognizant's intellectual property, including assets like TriZetto and the Neuro platform, serves as a significant differentiator in deal-making [6] Financial Performance and Deal Wins - Cognizant has returned to the "Winner's Circle," a goal set by previous leadership, with a focus on sustaining this success over multiple quarters [7][8] - The company has rebuilt a cycle of winning large deals, executing well, and leveraging that success to secure additional business. In 2023, Cognizant won 17 large deals, increasing to 24 in 2024, with four large deals in Q1 2025, including a mega deal [9][10] - The backlog for the second half of the year appears stronger, indicating confidence in future revenue growth [19][20] Market Environment and Spending Trends - The current market environment remains uncertain, particularly affecting sectors like manufacturing, supply chain, consumer products, and retail. However, discretionary spending in the BFSI (Banking, Financial Services, and Insurance) segment remains strong [12][13] - There is a debate on whether the current spending cycle is cyclical or secular, with indications that there is a secular demand for technology investments despite recent fluctuations [14][15] Large Deals and Risk Management - Large deals are categorized into two types: transformational projects and cost-cutting initiatives. Cognizant is focusing on both types to enhance efficiency and effectiveness [16][17] - The company is managing risks associated with large deals by ensuring a strong backlog and focusing on renewal components to secure revenue in uncertain environments [19][20] AI and Technology Integration - Cognizant is leveraging AI to enhance productivity and is focused on three vectors: improving productivity, preparing organizations for AI, and applying AI in new areas [29][30] - The company is confident in its ability to integrate AI into its service offerings, which is seen as a significant differentiator in the market [30][31] Workforce and Employee Development - Cognizant is committed to investing in employee training to ensure that its workforce is equipped to handle new AI-driven opportunities. Over 230,000 employees have received training in relevant technologies [42][43] - Employee satisfaction is crucial for retaining talent and reducing costs associated with turnover, which has been a focus for the company [62][63] Future Outlook and Key Performance Indicators (KPIs) - Cognizant aims to balance revenue growth with margin expansion, targeting a 10 to 30 basis points increase while continuing to invest in business growth [57][58] - Key KPIs for the company include customer satisfaction and employee satisfaction, which are seen as foundational for achieving revenue and margin goals [62][63] Conclusion - Cognizant is positioned to capitalize on its strengths in customer-centric culture, large deal execution, and AI integration while navigating a complex market environment. The focus on employee development and satisfaction is also critical for sustaining growth and maintaining competitive advantage.