CTSH · 10-Q · 2026Q3 · Full report

Liquidity and Cash Position

COGNIZANT TECHNOLOGY SOLUTIONS CORP · 2026-10-29 · Importance 13 · Surprise 6

Cognizant monitors domestic and international cash flows and balances and assesses how much non-U.S. cash, cash equivalents, and short-term investments is needed locally versus available for repatriation to the United States. The company expects operating cash flows, cash and short-term investment balances, and available revolving-credit capacity to cover operating requirements for the next 12 months, including purchase commitments, tax payments, Project Leap payments, and debt service. Beyond 12 months, acquisitions, long-term capital needs, and the capital return plan depend partly on cash-flow growth and access to debt or equity financing, including refinancing or extending existing debt maturities.

Key facts

• On October 5, 2026, Cognizant entered into a new credit agreement with a $550 million unsecured term loan and a $1,850 million unsecured revolving facility, both maturing in October 2031; the prior agreement was terminated and term-loan proceeds primarily repaid the prior term-loan balance. source
• In October 2026, Cognizant borrowed $1,000 million under the new revolving credit facility and used the proceeds to repay balances under the prior revolving credit facility. source
• Scheduled quarterly principal payments on the new term loan begin in December 2027; the credit agreement requires a leverage ratio no greater than 3.50:1.00, or 4.00:1.00 for up to four quarters after certain material acquisitions if elected. source
• Net cash provided by operating activities was $1,836 million for the nine months ended September 30, 2026, down $189 million from the prior-year period. source
• Cognizant had $1,552 million of cash, cash equivalents and short-term investments as of September 30, 2026, and $1,000 million outstanding under its revolving credit facility, leaving $850 million of facility capacity. source
• Cognizant's DSO was 89 days as of September 30, 2026, up 8 days from 81 days at December 31, 2025; it was 82 days as of September 30, 2025, up 4 days from 78 days at December 31, 2024. source
• Cognizant expects operating cash flows, cash and short-term investment balances, together with available revolving credit capacity, to be sufficient for operating requirements, purchase commitments, tax payments, Project Leap payments and debt service for the next twelve months. source
• Operating cash flow decreased in the first nine months of 2026 primarily because of higher incentive-based compensation payments, partly offset by lower cash tax payments. source