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Investor Day 2025 New York, NY March 25, 2025 © 2025 Cognizant | Investor Day
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Forward-looking statements In this presentation and during the course of Cognizant’s Investor Day meeting, we may provide projections or make statements that constitute forward- looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our strategy, strategic partnerships and collaborations, competitive position and opportunities in the marketplace, including projected growth in markets, investment in and growth of our business and our capital allocation strategies, the pace and magnitude of change and client needs related to generative AI, the nature and magnitude of our clients’ information technology expenditures, the effectiveness of our recruiting and talent efforts and related costs, labor market trends, the anticipated amount of capital to be returned to shareholders and our anticipated financial performance, matters related to our recent acquisitions and other statements regarding matters that are not historical facts. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, our ability to successfully use AI-based technologies, the competitive marketplace for talent and its impact on employee recruitment and retention, the ultimate benefits of our NextGen program, legal, reputational and financial risks resulting from cyberattacks, changes in governmental policy or the regulatory environment, including with respect to immigration, trade, competition, labor, technology, and taxes or otherwise, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law. © 2025 Cognizant | Investor Day
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Agenda Strategic vision Ravi Kumar S Platforms and engineering Prasad Sankaran and Vibha Rustagi Data and cloud Naveen Sharma Client perspective Amy Brady, CIO, KeyBank Agentic AI Babak Hodjat Break Markets: Americas Surya Gummadi Markets: EMEA Manoj Mehta Client perspective Paul Markovich, President & CEO, Ascendiun Partnerships and alliances Sandra Notardonato Talent Kathy Diaz Break Bringing it all together Jatin Dalal Q&A © 2025 Cognizant | Investor Day
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Strategic vision Building momentum and leading in the next wave Ravi Kumar S CEO © 2025 Cognizant | Investor Day
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Over 30 years, we built a heritage of innovation to engineer modern businesses Scale Incubate Sense Enable enterprise clients to gain competitive advantage Strengthen our clients, partners and employees Capture and augment every wave of disruption Flexible co-creation Strong client relationships Deep industry, technology, design and engineering expertise © 2025 Cognizant | Investor Day
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We are continuing our heritage of leading each tech wave Drove the wave of application development and maintenance (ADM) Mid-1990s–early 2000s Reinvigorated the company, built resilience and durability and invested to lead the next growth wave 2023–today Defined the wave of social, mobility, analytics and cloud (SMAC) Mid-2000s–mid-2010s Grew in the initial wave of digital transformation Mid-2010s–2020 Slower growth during the wave of accelerated digitization COVID-19 © 2025 Cognizant | Investor Day
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Our 2023–2024 strategy had three imperatives 1 Become employer of choice • Establish and stabilize leadership team • Reduce voluntary attrition substantially • Revive culture of grassroots innovation 2 Optimize delivery and operations • Improve margin execution on large deals • Restructure and streamline the organization with NextGen • Investing $1B in AI enablement for GTM, talent, platforms, labs and commercial teams 3 Accelerate growth • Reinvigorate financial services, extend growth beyond healthcare into products and resources and CMT • Win large deals • Strengthen partner ecosystem © 2025 Cognizant | Investor Day
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1 Become employer of choice Leadership team TTM voluntary attrition Returnees 2 Optimize delivery and operations Trained on AI Innovation ideas AI automation 3 Accelerate growth Large deals Enhanced capabilities ∆ in revenue growth High NPS Employee engagement score The results of our strategy are tangible -10 pts (Q4’22–Q4’24) new VP+ leaders 50 ~14k employees trained ~230k 47k FTE releases ~12k 17 (2022) 29 (2024) +900 bps (Q4’23–Q4’24) strategic tuck-ins2 implemented with clients © 2025 Cognizant | Investor Day TCV +50% associates
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1 Become employer of choice Return to our winning heritage Build resilience and durability Prepare to lead the next growth wave 2 Optimize delivery and operations 3 Accelerate growth Successfully achieved our key imperatives © 2025 Cognizant | Investor Day
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We are well positioned to capture the massive opportunity in front of us © 2025 Cognizant | Investor Day
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The next wave of enterprise transformation is upon us Embedded engineering “Phygital” product engineering Smart manufacturing Autonomous systems Artificial intelligence Enabling hyperproductivity Industrializing AI Agentifying the enterprise © 2025 Cognizant | Investor Day
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We have invested heavily in both drivers Embedded systems (Mobica and ESG Mobility) Intelligence at the edge IT and OT convergence in manufacturing Smart mobility labs Aerospace and defense with Belcan acquisition Industry 4.0 transformation Embedded engineering Neuro® suite of platforms “Last mile” infrastructure accelerators Multi-agent orchestration capabilities AI labs Framework for responsible and ethical AI Productivity and workforce studies AI © 2025 Cognizant | Investor Day
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An expansive multi-trillion-dollar market opportunity Embedded engineering (ER&D and IoT) Cloud and data infrastructure Apps and tech services Digital operations CAGR (2024–2027) Est. TAM (2027) Key drivers • Unlock of insourced spend • Increasing size and share of enterprise spend • Focus on the readiness of cloud and data • Explosion of AI-led innovation of new products and services • Repurpose existing spend • Elimination of technical debt as enterprises modernize and integrate AI • More vertical-based operations • Agentification of workflows to create new spending pools ~$280B ~$840B ~$2T ~$274B ~10% ~8% ~7% in technical debt Sources: Gartner, IDC, FactSet, Oliver Wyman, Cognizant estimates © 2025 Cognizant | Investor Day
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Penetrating industries to capture embedded engineering opportunity % of 2024 revenue Strategic acquisitions 30% Health Sciences Connected healthcare and medical device ecosystem 29% Financial Services Software-led fintech solutions 17% Comms, Media & Tech Network engineering and edge capabilities 24% Products and resources including, but not limited to: Automotive Autonomous and software defined vehicles Logistics Remote monitoring and field service Aerospace Embedded software in aircraft and autonomous systems © 2025 Cognizant | Investor Day
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We have a three-vector approach to AI Enabling hyperproductivity Now Industrializing AI Now–2030+ Agentifying the enterprise Now–2030+ 1 2 3 1 2 3 © 2025 Cognizant | Investor Day
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Vector 1 Enabling hyperproductivity • Built Cognizant FlowsourceTM, an AI-powered, unified full-stack platform for software engineering • Leveraged AI code-assist platforms for software development lifecycle • Established KPI framework to measure AI progress across projects: Gen AI adoption index Gen AI scaling index Gen AI impact index ~$2 trillion in technical debt The opportunity Repurposed savings towards innovation Our actions …with AI hyperproductivity… Accelerate elimination of technical debt… …to capture a larger wallet opportunity Source: Oliver Wyman © 2025 Cognizant | Investor Day
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Vector 1 Enabling hyperproductivity Gen AI adoption index2 Gen AI impact index2 83% 56% 37% Gen AI scaling index2 employees trainedTrained on AI ~230k FTE releases 12k client implementations1 Flowsource ~70 ~120 code is machine assistedAI-written code ~20% from AI and automation clients in evangelization/ discovery Automation ~10k use cases deployed 2022 2024 2023 2From a pool of 361 accounts The impact Increasing velocity of AI hyperproductivity © 2025 Cognizant | Investor Day out of which 1 In various stages of approval/implementations out of which
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Vector 2 Industrializing AI: Localizing, customizing and integrating © 2025 Cognizant | Investor Day The opportunity Rebuilding the tech stack of yesterday to meet the AI demands of tomorrow Differentiated solutions for a heterogeneous landscape Our actions Rewired experience Create dynamic new experiences with Cognizant MomentTM The impact new projects AI vector 2 adoption ~1,200 across cloud and data layer Platform deployments (# of clients) ~100+ Multi-agent orchestration Use autonomous multi-agents to reduce the need for humans-in-the-loop Decisioning, trust and model management Rebuild SaaS layer with dynamic logic in the AI- native layer Enterprise data Unify structured and unstructured data Foundation Bolster essential capabilities like cloud, data, digital engineering
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Vector 2 Industrializing AI: Localizing, customizing and integrating Our platforms Technology Flowsource Cognizant SkygradeTM Cognizant IgnitionTM Neuro IT Operations Neuro AI Engineering Neuro Cybersecurity NeuroEdge WorkNEXT Industry TriZetto® Pharmacovigilance digital platform Shared Investigator Platform OrderServ® Stores360 Operations Neuro AI decisioning Neuro multi-agent orchestrator Neuro Business Processes Building platforms to address enterprise heterogeneity and investing to strengthen capabilities at different levels of the AI stack Last-mile infrastructure Assemble the best third-party components Align methods, alliances and capabilities Add Cognizant IP and accelerators Incorporate within managed services Bridging the “last mile” gap utilizing Cognizant’s differentiated IP and platforms Last-mile capabilities © 2025 Cognizant | Investor Day
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Vector 3 Agentifying the enterprise The opportunity Potential expansive and non-linear untapped TAM The impact Our actions • Establishing a repeatable framework for identification and prioritization of the most attractive service pools • Reimagining enterprise processes with domain + tech + operations • Building an AI-native startup ecosystem • Sensing and scaling future capabilities with STEM and non- STEM (e.g., drug discovery) • Evolving new pricing economics pilot programs Agentification client projects ~100+ Untapped human services “Service-as- a-software” Agentifying existing human workflows Agentify human workflows Co-creating new service pools, including human services augmented with digital agents Expanding beyond software budgets to workforce spend © 2025 Cognizant | Investor Day
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IT services market Future Agentified labor pool $1 trillion Client sales staff Client marketing staff $70–$100 billion Sales & Marketing © 2025 Cognizant | Investor Day Vector 3 Agentifying the enterprise Today Sources: Cognizant estimates, Foundational Capital Sales example: Redirecting ops spend to IT services spend
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Horizontals Verticals Customer Service Healthcare Financial Services Insurance Telecom Security Logistics Legal Recruiting Sales & Marketing Manufacturing Art of the possible—numerous opportunities to agentify across horizontals and verticals Talent acquisition Sourcing Onboarding Dispatcher Freight clerk Trade compliance Threat detection Vulnerability identification SOC analysis Accounts payable coordinator Account management Compliance analyst Regulatory reporting Underwriting specialist Claims adjudication Risk assessment agent Fraud detection Customer service agent Virtual network management Content generation Concept development Prototyping Product design and engineering Asset maintenance Contract writing Templatization Paralegal activities Legal research Content creation Sales enablement Proposal writing Campaign management Lead generation Service desk Outbound sales Quality assurance Claims processing assistant Medical billing specialist Prior authorization consultant Transcription specialist © 2025 Cognizant | Investor Day Vector 3 Agentifying the enterprise
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$1.4T$50BR&D $70-100BSales & Marketing $80BHealthcare $114BTelecom $1.0T $3.4T $400B $700B$18-29BHR $15-18BCustomer Service $500B $150BBanking $180BManufacturing $600B $1.2T Force multiplier unlocking untapped spend pools Sources: Gartner, IDC, FactSet and Cognizant estimates Examples of early impactThe opportunity From IT spend… to labor pool spend © 2025 Cognizant | Investor Day Vector 3 Agentifying the enterprise reduction in drafting time~24% Agentic reporting solutions reduction in appeals processing time~25% Agentic appeals and grievances solutions boost in RFP productivity~40% Agent-enabled RFP Cross-industry Insurance Healthcare
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Cognizant’s right to win in AI Early "sensing" and investment Platform approach Intersection of tech, domain and operations1 2 3 Investing $1+ billion to position ourselves to lead the AI wave Platforms Skills GTM Partners Developed vendor-agnostic and interoperable Neuro suite of platforms for agentic AI era Addressing customer "last mile” challenges with orchestration capabilities Reimagining "agentified workflows" with strong domain and operations knowledge Strong cloud and data capabilities © 2025 Cognizant | Investor Day
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Our strategy is driving shareholder value © 2025 Cognizant | Investor Day
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Evolution of our strategic imperatives 1 Amplify talent • Sense and scale skills of the future • Expand learning infrastructure and programs • Enhance the employee value proposition 2 Scale innovation • Scale platforms for the AI era • Invest in IP and thought leadership—AI labs, studios and hubs • Enhance value with Bluebolt innovation initiative 3 Accelerate growth • Lead in AI/gen AI • Grow in priority industries and geographies • Strengthen capabilities in high-growth adjacencies Winner’s circle by 2027 2025+ initiatives © 2025 Cognizant | Investor Day
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Winner’s circle Our path to the winner’s circle © 2025 Cognizant | Investor Day 1 Cognizant and peer revenue growth rates are total company in constant currency 2 Peer group includes Accenture, Capgemini, CGI Group, DXC, EPAM, Genpact, HCL, Infosys, Tata Consultancy Services and Wipro Top Tier defined as top 4 Cognizant vs. peer average1 2022 ~(8%) 2023 ~(3%) 2024 ~+0.5% 2025 2026 2027 Above peer average 10th 8th 6th Cognizant revenue growth vs. peer average1,2 What this looks like • T op-tier revenue growth • Gain market share • Sustain large deal momentum • Skilling for the future • Gradual margin expansion • EPS growth > revenue growth Revenue growth rank vs. peers1,2 Top tier
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Driving long-term shareholder value Top-tier revenue growth by 2027, driven by organic revenue growth1,2 Annual adjusted operating margin expansion of 10–30 bps, supports EPS growth rate above revenue2 1 Peer group includes Accenture, Capgemini, CGI Group, DXC, EPAM, Genpact, HCL, Infosys, Tata Consultancy Services and Wipro 2 See "About Non-GAAP Financial Measures and Performance Metrics" at the end of this presentation for more information This assumes no material change to tax rate and applicable tax laws and regulations 90%–100% annual free cash flow2 conversion supporting balanced capital allocation © 2025 Cognizant | Investor Day
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Agenda Strategic vision Ravi Kumar S Platforms and engineering Prasad Sankaran and Vibha Rustagi Data and cloud Naveen Sharma Client perspective Amy Brady, CIO, KeyBank Agentic AI Babak Hodjat Break Markets: Americas Surya Gummadi Markets: EMEA Manoj Mehta Client perspective Paul Markovich, President & CEO, Ascendiun Partnerships and alliances Sandra Notardonato Talent Kathy Diaz Break Bringing it all together Jatin Dalal Q&A © 2025 Cognizant | Investor Day
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Platforms and engineering Prasad Sankaran President, Software and Platform Engineering Vibha Rustagi SVP , Global Practice Head IoT , Industry 4.0 and Engineering © 2025 Cognizant | Investor Day
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Platforms differentiate our services by enabling hyperproductivity The complexity is in the “last mile” Platforms help our clients bridge the gap Speed Cost HyperproductivityQuality Implementation complexity Legacy technology Talent and budget shortages Pace of AI development Diversity of cloud, ecosystem Lead time to implement We identify “last mile” challenges that can be addressed with repeatable solutions for disruptive impact. We then use our wealth of experience to create software-based solutions proven at enterprise scale. Benefits of platforms Enterprises struggle to keep pace with technology © 2025 Cognizant | Investor Day
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Our platforms optimize IT spend, transform client IT estates andpower innovation © 2025 Cognizant | Investor Day Modernize Cognizant SkygradeTM Cognizant IgnitionTM Optimize Cognizant Neuro IT Operations Cognizant Neuro Business Processes WorkNEXT Legacy technology Platforms specialized for partners Modern technology Innovate Cognizant FlowsourceTM Cognizant Neuro® AI Cognizant Neuro AI Engineering Cognizant Neuro Edge
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20%–50% productivity through automation and simplification 20% of code is machine assisted Business analyst Design and understand requirements Full-stack engineer Develop code SDET Test, refine and release code Design Build Test Integrated development workflow Augmented development portal Delivery measurement Gen AI bots Governed workflow Software templates DevSecOps services Gen AI prompt libraries 70 client implementations of Flowsource 120 clients in evangelization and discovery Client proof points• Developer experience • T oolingand code companions • Automation • Policies and guardrails Features Platform example Flowsource: Our unified full-stack platform for software engineering Improves developer productivity and software quality by simplifying adoption of gen AI-powered tools in a single collaborative interface Benefits Docs with gen AI chat Pluggable preconfigured tooling © 2025 Cognizant | Investor Day
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Our clients have adopted our platforms with strong results 20%–50% increase in developer productivity Innovate 30%–60% cost reduction for IT estate Modernize 15%–30% IT staff rotation from run to innovate Optimize Typical benefits from our platforms Platforms adoption 400+ platform instances used at clients Media client Cognizant Neuro IT Operations 40% 92% Healthcare payer client Cognizant Skygrade Telecommunications client Cognizant Flowsource 30% 2B 40% 50% cost savings in run IT ops faster triage and issue resolution lower costs in migrating COBOL to Java claims migrated from mainframe to cloud database reduction in time to market increase in productivity © 2025 Cognizant | Investor Day Key to win and execute large deals
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The engineering opportunity © 2025 Cognizant | Investor Day
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Our global engineering services enable our clients to innovate and compete Design and build Test Run Digital engineering Quality engineering and assurance Application development and maintenance Engineering research and development Products Industrial operations Commercial solutions Software engineering Engineering and IoT Custom software for enterprises Intelligent, connected, autonomous ~$6B+ revenue1 ~$2B+ revenue1 © 2025 Cognizant | Investor Day 1 Approximate 2024, Belcan impact annualized
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Our differentiated approach to engineering Global footprint Three-shore delivery model: deployed across a three-shore delivery model in 45 countries Modern methods New talent archetypes AI-proficient workforce Modern talent approach Platforms Delivering non-linear productivity through AI and automation Specialized acquisitions 30k+ onshore 4k+ nearshore 80k+ offshore Partner ecosystem © 2025 Cognizant | Investor Day
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Digital engineering enables businesses to compete more effectively Creates and evolves digital, AI-infused applications, scaling them with fast time-to-value Modernizes legacy applications from monolithic to modern architecture Legacy modernization Modern methods Cloud AI and automation New digital applications AI-infused Agile Outcome- driven © 2025 Cognizant | Investor Day
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We successfully powered the digital transformation for a leading bank consumer mobile banking app ranking of consumer banking interactions are digital #1 >77% Initial client ask Product strategy Unified experience Digital transformation Reimagine the end-to-end user experience across multiple customer-facing banking products Client outcomes Expanded client relationship Mainframe application modernization Reimagine banker software experience Flowsource adoption across six strategic areas Revenue growth from leading bank three-year CAGR in software engineering services22% $88M three-year increase in annual Cognizant revenue Additional projects © 2025 Cognizant | Investor Day Ma ya
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Engineering and IoT © 2025 Cognizant | Investor Day
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Advanced engineering and IoT are central to the next wave Build Make Connect Service Factory automation and operations management Sensors, actuators and machines Embedded systems and devices IoT platform and applications Smart buildings and geospatial Edge and connectivity enablement © 2025 Cognizant | Investor Day
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A large and growing market opportunity Large, growing market ~$280B in 2027 | ~10% CAGR with distinct buyer groups © 2025 Cognizant | Investor Day % of spend by horizontals % of spend by industries Embedded and firmware engineering 58% Manufacturing engineering 17% Hardware and mechanical engineering 9% Network engineering 7% Others 9% Automotive 20% Silicon/Hi-tech 18% Industrials 13% T elecom 8% Energy & Utilities 7% Medical Devices 7% Aerospace & Defense 7% Sources: Zinnov, Everest Group, Nasscom , Cognizant est imates Other industries represented approximately 20% of spend and are not presented in the chart above
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Differentiated capabilities enable us to deliver cutting-edge solutions across high- growth industries Intelligent automotive and mobility Intelligent operations Spaces, sustainability and geosolutions Smart products Design, build, innovate and validate modern, intelligent and connected products and networks Design, build and validate software and E/E* for connected and autonomous mobility and sustainable transportation Modernize, maintain and upgrade production plants globally in building autonomous and smart factories, manufacturing and utilities of the future Build and deploy solutions to manage physical spaces, buildings, plants, field services and logistics towards sustainable outcomes © 2025 Cognizant | Investor Day Manufacturing & Logistics Automotive & Transportation Communications Media & Technology Medical and Life Sciences Energy & Utilities Retail, Consumer Goods *Electrical /Elect ronics Aerospace & Defense
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Delivering transformative value to our clients across offering portfolio © 2025 Cognizant | Investor Day Building future -ready chargers for the EV vehicles. 35,000 units scaling to an additional 10,000 units Global technology leader in electrification and automation Smart products Long-term transformation of core ER&D portfolio with more than 75 products Global player in energy management and automation Spaces, sustainability and geosolutions Global food and beverages provider Comprehensive, phased strategy to enable net zero commitment by 2040 while navigating digital transformation Leading global food chain Advise and manage spaces for a major real estate portfolio worth $30B and spread across 25+ global markets Global paper and packaging major Global leading multinational pharmaceuticals Built and deployed IIoT platform along with use cases that improve batch efficiency, predictive maintenance covering edge and cloud compute, analytics and AI Smart manufacturing platform across 20+ mills and plants integrating historian, MES and ERP data in the cloud to run analytical applications for yield improvement Intelligent operations Vehicle software, validation for suite of cars. State-of-the-art, dedicated automotive lab across Germany, Romania, India German automotive OEM ADAS/autonomous program with 12 prototype vehicles commissioned and shipped. 9 more vehicles in 2025 European auto OEM in autonomous electric movers Intelligent automotive and mobility
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Our platforms, accelerators and solutions Digital twin Factory advisor Neuro Edge LLM @ Edge Gen AI avatar © 2025 Cognizant | Investor Day
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Our right to win with scale, deep expertise and differentiated capabilities © 2025 Cognizant | Investor Day Industry-specific GTM offerings aligned with market needs Specialized engineering talent pool distributed globally Global network of labs and "phygital” infrastructure Strategic M&A investments to strengthen our value proposition Robust IP , assets and process frameworks in delivery Tailored offerings specific to market spend across industries Broad and deep partnership ecosystem Strategic partner with sticky, long-term business Niche competencies at "phygital" products and processes Shift from a closed -door to an open-door engineering model Diversified engineering talent in Americas, Europe, APAC Physical devices, equipment and infrastructure beyond IT Hardware and firmware studios, physical garages Software-defined vehicle, Industry 4.0, embedded, IoT Access to industries (e.g. A&D) and markets (e.g. Germany) Strengthen capabilities across the chip-to-cloud Industry and domain-specific expertise and solutions Proprietary solutions to accelerate time to market Successfully delivering safety and mission -critical products Consistent delivery quality across domains (automotive, aerospace, rail, nuclear)
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Platforms and engineering Platforms and engineering are central to the next wave of transformation Our differentiated platforms and engineering allow us to deliver cutting edge solutions for clients, scale AI adoption and infuse AI services Cognizant platforms enable hyperproductivity and bridge the last mile gap Our advanced engineering and IoT portfolio is well positioned across high-growth industries We are delivering transformative value for clients and seeing momentum in client adoption © 2025 Cognizant | Investor Day
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Data and cloud Naveen Sharma SVP , Global Practice Head of Data, AI and Analytics © 2025 Cognizant | Investor Day
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The data and cloud services opportunity is large, and we are well positioned to capture it with our scale and differentiation 8% CAGR from 2024-2027 ~$840B data and cloud TAM in 2027 ~40% of Cognizant revenue is from Data & Cloud 1 Our differentiationOpportunity Our scale Leader and Star Performer in Artificial Intelligence (AI) and Generative AI Services Quadfecta Services Horizons 2024 & Market Leader in Generative Enterprise Services, 2025 Leader in RadarView Hybrid Enterprise Cloud Services 2024-2025 Market recognition as a leader Breadth of offerings, platforms and strategic acquisitions Industry focus and incumbency • 120+ hyperscaler-ready horizontal and industry-specific solutions for faster time-to-value • Industry-tailored AI/ML models like BFSI fraud detection and healthcare appeals and grievances AI solution • AI-powered data modernization, cost optimization and compliance • Suite of platforms including Cognizant IgnitionTM and Cognizant SkygradeTM • Cloud offerings across every step of the lifecycle—enable to, for and by cloud Source Gartner, IDC, FactSet, Cognizant estimates 1 Data and cloud revenue estimates include overlap with software engineering , IoT and other practices © 2025 Cognizant | Investor Day
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Enabling the three vectors of AI will require a new technology stack with data and cloud as the foundation Enabling hyperproductivity Now Industrializing AI Now–2030+ Agentifying the enterprise Now–2030+ 1 2 3 1 2 3 © 2025 Cognizant | Investor Day Rewired experience Retooled/expanded engagement modalities (e.g., voice, image) with software Multi-agent orchestration Intelligent orchestration of purposive autonomous agents; human-in-the-loop Decisioning, trust and model management Small and large language models, decision trees, traceability, transparency and governance Enterprise data Structured data stores, unstructured data, external data stores, analytics and insights Foundation Cloud, SaaS, digital engineering, APIs, OT , business operations, cyber
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Our broad offerings enable enterprises to become AI-native © 2025 Cognizant | Investor Day Data foundation Build and maintenance of traditional data ecosystems Data & AI management Enable secure, efficient and cost -effective use of data and AI assets Data modernization Enable latest capabilities of hyperscaler and cloud data platforms by moving data estates to the cloud Business intelligence and visualization Activation of data at scale: turning data → decisions for each industry Analytics and AI Analytics and AI models that automate, predict and improve business outcomes Enable to cloud Advise, design, migrate and modernize the cloud journey Enable for cloud Secure, optimize and drive cloud operations Enable by cloud Innovate business and industry cloud, product development for new capabilities and setup for gen AI Enterprise data Scalable foundation
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We have 120+ hyperscaler-ready plug and play solutions for faster time-to-value Streamlines trial activities and data sharing; live across five leading biopharma services Shared Investigator Platform 57% improved study site activation A suite of patented tools that accelerate the journey of data modernization across business domains Cognizant Ignition 30–60% faster time to market © 2025 Cognizant | Investor Day Solutions for seamless digital online ordering for food OrderServ 2.0® Appeals and grievances handling with gen AI Solution for accelerated adoption of loT by improving maintenance, operations and transforming business models APEX Meet seasonal demands at 30% the cost of a traditional hosted architecture Up to 25% reduction in maintenance costs 86% accuracy which reduces reliance on human agents Decipher intent of provider appeals and grievances for a healthcare payer organization
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Increased efficiency across the data modernization and intelligence lifecycle (assessment to analytics) Features Platform example Cognizant Ignition A suite of intelligent tools and frameworks to modernize data and business intelligence platforms with accuracy, consistency and agility in a cost-effective way Benefits The Crosswire Discovery and assessment The Porter Intelligent migration The Weaver Data integration The Controller Quality and validation The Spectrum Analytics and optimization Suite of intelligent tools and frameworks Driving automation Improved data platform modernization experience Complete proposition Augment and fill the white spaces of partners tech No-code concept tools Enable citizen data engineering Embedded AI Applied AI/ML on data modernization engineering Migrate anywhere Cloud-agnostic migration framework Smart operations DataOps, MLOps and AIOps frameworks Data2Insights $32M+ savings achieved with automation 1M+ hours saved 12PB+ of data migration © 2025 Cognizant | Investor Day 140+ IP Consultants 25 proprietary accelerators 225+ IP projects 5 patents
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Accordingly, we are executing several priorities to position us for the future Cognizant Ignition 30–60% cost reduction for data schema migration and testing Cognizant Skygrade Fewer downtime hours, 40%–70% reduction in downtime Cognizant Unified Cloud Assurance Studio Cloud Infrastructure Assurance Cloud Assurance Advisor Continuous testing platform Strengthening our partnerships ecosystem and joint offerings portfolio Upskilling talent and accelerated research Incubated robust platforms Snowflake Spend Management & Governance Lead with Snowflake (Legacy Modernization) Snowflake Industry Solutions (MLEU) Snowflake Geospatial Solution (w ESRI) Databricks Serverless Modernization Databricks Unity Catalog Modernization Databricks Mosaic AI Modernization Databricks DWH Modernization Cognizant NVIDIA RAPIDS Cognizant Agent Factory Cognizant NVIDIA Healthcare domain LLM with Health AI agents MS Fabric modernization BI modernization to MS Power BI Google Big Query and Alloy DB modernization Google Cortex industry solutions AWS Data unification with gen AI X to AWS Glue modernization 92,000+ cloud-certified engineers 38,000+ cloud architects © 2025 Cognizant | Investor Day 1 2 3 34,000+ data and AI associates
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We recently helped a company that researches and develops antiviral drugs pivot to AI-first transformation Innovation is at the heart of drug discovery and transformation. We have been a strategic partner to the client for more than eight years in designing, building and running their “digital foundation. ” Leading biopharmaceutical company © 2025 Cognizant | Investor Day Cloud modernization Data modernization Enterprise and agentic AI Neuro® XT transformation Gen AI-driven engagement for human-centric workplace and autonomous operations through experience -as-a-service model AI for IT operations FutureOps-driven COD optimization for IT operations Making infrastructure and applications safe, secure and risk-free IAM, threat and vulnerability management with 99% compliance and risk assessment timelines reduced from 3 months to 3 weeks Fusion command center End-to-end global services in command center management with 7000+ servers, 30k+ PC endpoints, 16 languages, 14 PB storage Pharma 4.0 and Biologics 4.0 roadmap Maturity assessment and roadmap definition uncovering 35+ use cases Unlock cloud-first data management Cloud-first approach to improve time to market, delivered through 70% automation of data and schema conversion in migration Customer master data harmonization Integration of customer data from acquisition activity AI-powered self-service analytics Conversational search interface for business users with >80% relevance in the first pass AI and gen AI Leveraging machine learning and gen AI within an agentic framework across customer service, employee interactions and business value management use cases
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Breadth, scale and market recognition = our right to win We have continuously demonstrated success, and our proven track record enables us to win more deals © 2025 Cognizant | Investor Day Domain-specific solutions Suite of platforms AI-powered data modernization DataOps and cloud cost optimization AI-driven compliance Industry-tailored AI/ML models Prebuilt accelerators and frameworks Cognizant Neuro AI Data-sharing marketplaces and clean rooms Embedded AI-driven decision intelligence Cognizant Ignition Ontology-driven knowledge graphs AI-enhanced metadata management Unified AI, DataOps and MLOps pipelines AI-powered FinOps for cloud Automated governance, monitoring and observability AI bias detection and explainability tools Regulatory risk and compliance automation Secure AI collaboration Faster deal cycles Higher client retention Lower implementation cost New revenue streams via data monetization Ongoing AI-driven platforms Larger contract sizes Higher margin consulting work Long-term cloud spend stickiness Stickier, long-term cloud transformation deals High-margin recurring revenue from managed services Built-in AI risk mitigation Key advantage in industries like finance, healthcare and government
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Data and cloud We have the scale and incumbency to capture the large data and cloud growth opportunity The data and cloud market is ~$840B in 2027 with 8% annual growth from 2024–2027 Data and cloud are the foundation upon which enterprises can deliver on the AI opportunity We are investing in partnerships, talent and platforms to position us to lead in the AI transformation era Our domain-specific solutions, partners, platforms and offerings along with our scale and analyst recognitions are our right to win © 2025 Cognizant | Investor Day
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Surya Gummadi President, Cognizant Americas 58 © 2025 Cognizant | Investor Day Amy Brady CIO, KeyBank
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Pioneering the future of enterprise with multi-agent AI Babak Hodjat CTO AI © 2025 Cognizant | Investor Day
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Cognizant is making significant investment in AI innovation and capabilities Cognizant AI Research Lab San Francisco center + global researchers AI experts exploring, designing and building AI and gen AI innovations for business productivity. Cognizant AI innovation studios London + New Y ork + San Francisco + Dallas + Amsterdam + Bangalore + Sydney + … Spaces that bring clients and associates together to co-create AI solutions for business problems . Knowledge sharing via industry consortiums Joint research with academia US-issued AI patents 57 Peer-reviewed publications 70+ AI capabilities and platforms • Multi-agent systems • Responsible AI • Neuro® AI platform • Solution architecture • Internal deployments • Third-party agent integration © 2025 Cognizant | Investor Day
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© 2025 Cognizant | Investor Day What is multi-agentic AI and how does it differ from traditional AI? Gen AI models generate predictions Agents do things Multi-agent systems work together Designing agent Coding agent Testing agent Documenting agent Project Manager agent Agent core Tools Memory Users Goals Planning Action Environment Other agents VoiceVoice Video Video Image Image TextText
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“ ≈ Multi-agentic AI brings in the next big wave of AI advancement Multiple agents can work toward a common goal that goes beyond the ability of individual agents. The combined application of multiple agents can tackle complex tasks that individual agents cannot, while creating more adaptable, scalable and robust solutions.”1 The market for AI agents is expected to see significant growth, rising from $5.1 billion in 2024 to $47.1 billion by 2030—Gartner2 25% expected decrease in customer service cost3 30% expected boost in operational efficiency3 2 Source: Gartner 3 Source: McKinsey Superagency in the workplace: Empowering people to unlock AI’s full potential (01/25) © 2025 Cognizant | Investor Day 1 Source: Gart ner: Capitalize on the AI Agent Opport unit y (2/25)
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© 2025 Cognizant | Investor Day Cognizant Neuro AI
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Cognizant provides end-to-end capabilities for multi-agentic enterprises Grounded foundations Neuro AI and Cognizant IgnitionTM Data, API/microservices, processes and organization Custom UX Cognizant MomentTM Entry point-agnostic, diversity of channels, user-centric, domain-specific, adaptive Incremental expansion Neuro AI Multi-Agent Accelerator Interoperability, departmental contributions, sandboxing, validation, deployment process, future-proof Responsible AI TRUST framework Security, governance, risk management, trust Maintenance and continuous improvement Agentic platform Logging per agent, fine-tuning, LLM upgrade process Metering and ROI Agentic platform Inference I/O cost, ROI gauge, efficiency/productivity calculator © 2025 Cognizant | Investor Day
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Cognizant is well positioned to lead enterprise (multi-) agentification ✓ We know clients’ workflows ✓ Our clients trust us and can own the IP ✓ Data and infrastructure prerequisites ✓ Platform-agnostic ✓ First-mover advantage ✓ Differentiated IP ✓ The last mile ✓ AI/domain experts ✓ We “drink our own champagne” pilot programs Agentification projects ~100+ reduction in drafting time~24% Agentic reporting solutions reduction in appeals processing time~25% Agentic appeals and grievances solutions © 2025 Cognizant | Investor Day Insurance Healthcare
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Break © 2025 Cognizant | Investor Day
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Markets: Americas Surya Gummadi President, Cognizant Americas © 2025 Cognizant | Investor Day
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Americas represents 75% of Cognizant’s business and we have built resilience by broadening our portfolio across industries Healthcare (35%) Payer Provider Biopharma Medical devices Financial Services (28%) Banking Capital markets Cards and payments Fintech Insurance Products and Resources (22%) Retail Consumer Mfg. & Logistics Travel & Hospitality CMT (15%) Communications Media Technology $14.7B revenues in 2024 +3% growth YoY 200,000+ associates Historic strength and market-leading presence Differentiated platform (TriZetto®) with 2/3 of insured US population Core segment with clients across the continuum Retaining and expanding our foothold Expansion focus area leveraging new assets (e.g., Belcan) Expansion focus area 80% of top 10 general retailers 70% of top 10 global insurance companies 92% of top 25 healthcare plans 90% of top 10 NA platform and SaaS companies © 2025 Cognizant | Investor Day
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Our progress over the last eight quarters has helped us return to top-tier industry growth in Americas Revamped GTM • Targeted domain offerings • Strategy and talent refresh • Focus on winning large deals Regained momentum in financial services Led with health sciences growth Gained market share in under- penetrated segments: healthcare provider, comms and media Doubled large deals throughput Achieved historically high NPS Built trust Clients, partners and analysts • Co-innovation across our partner ecosystem • Regular engagement with advisors and analysts • Platform investments Enhanced delivery • Strengthened solutions and platforms • Belcan and Thirdera acquisitions • Invested in talent and skilling Outcomes © 2025 Cognizant | Investor Day
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We are now focused on five priorities to sustain our growth momentum Expand into underpenetrated markets Build on large and mega deals Position for GCCs Lead with industry solutions and platforms Aerospace & Defense, Energy & Utilities, Oil & Gas, Communications & Media, Provider Focus and win large mega deals ($1B+) New GTM models and service catalog Leverage differentiated platforms for growth in adjacencies (e.g., with TriZetto) $43B electronic health records market size by 2030 +1,000 net new GCCs expected between 2020 and 2030 ~75% TCV share of $100M+ industry deals that were $1B+ in 2024 ~$190B 2024 TAM in key opportunity markets Convert AI mindshare to market share Industry AI and agentic AI solutions Significant opportunity across all three vectors Sources: Gartner Vertical Forecast 4Q24 (Americas only), IDC Services Contract Database March 2025, Grand View Research, NA SSCOM © 2025 Cognizant | Investor Day
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We are converting AI mindshare to market share 1 2 3 The opportunity Our actions Built and executing new AI GTM playbook Outcomes Large deal success + growth + stable margin 100+ early-stage discussions and an expanding pipeline 1,200 AI engagements, with strong growth in AI and data 1 2 3 Enabling hyperproductivity Agentifying the enterprise Industrializing AI New capabilities: AI labs (57 patents), talent (20+ PhDs) and platforms (Neuro ® suite) New selling skills: Extended training for frontline in AI and gen AI New pricing models: Shifting from T&M to fixed bid and expanding models for agents and gen AI platforms New partnerships: Expanding ecosystem to new AI-native partners © 2025 Cognizant | Investor Day
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We continue to differentiate with TriZetto and our other platforms Expand into Provider (~30% of the platform business today) and become the preferred payor-provider vendor Expand into adjacencies like RCM and EMR Agentify our platforms to future-proof our market leadership • 65% market share of US -insured population • Gaining traction in Provider (e.g., third largest clearinghouse in U.S) • Building capabilities to expand internationally (e.g., Middle East) The opportunity Our actions Outcomes Investing to infuse AI into our platforms (modernization, agentification) Building platforms to access adjacencies like prior authorization in Provider $0.8B 2021 $1B+ 2024 +8% CAGR TriZetto revenue ($B) © 2025 Cognizant | Investor Day
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The opportunity Our actions Outcomes We are expanding our large deal momentum to focus on mega deals and capitalize on global capability centers (GCCs) Large deals GCCs The portion of large deals is increasing 2022 2024 ~8% ~12% Large deals (> $100M+ deals) as a % of all publicly available deals globally 13 2912 25 2022 2024 $100M+ $50M–$100M In 2024, we more than doubled the number of large deals in Americas Built large deal infrastructure • Precision focus • Market pricing • Flawless execution • Domain expertise leverage The number of GCCs is growing 6 GCC recently awarded deals • 500-seat deal with large insurance company • 1,000-seat deal with mid -size bank 20+ more deals in the pipeline Established and executing GCC strategy across: • New GCCs • Transformation of existing GCCs • Carveouts 1,580 1,900 2023 2025 Expected to grow to 2,400 in 2030 © 2025 Cognizant | Investor Day Sources: IDC Services Contract Database (March 2025), NASSCO M
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We are also investing to expand market share in underpenetrated markets Communications & Media Energy & Utilities, Oil & Gas Healthcare Provider Actions • Winning large managed services deals • Enhancing sales engine and market coverage • Strengthening leadership • Partnerships and joint GTM to identify value pools and market entry points • Establishing leadership structure • Leveraging Utegration to bolster SAP capabilities • Expanding TriZetto platforms into adjacencies (e.g., prior authorization and RCM) • Gained access through Belcan • Joint GTM and partnerships Aerospace & Defense TAM $74B $34B $42B $37B Key drivers Need for ER&D capabilities and convergence of IT/OT Key disruptions (e.g., grid modernization, new energy transition) driving client spend Advancements in 5G, IoT and AI driving clients to invest in key areas (e.g., network) Industry challenges (e.g., cost pressures, cyberattacks) driving tech investment CAGR (2024–2027) 12% 10% 4% 8% Sources: Gartner Vertical Forecast 4Q24 (Americas only), Zinnov © 2025 Cognizant | Investor Day
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The Americas The Americas have led and will continue to lead our return to the Winner’s Circle The Americas represents ~75% of Cognizant’s business; we have built resilience by broadening our portfolio across industries Our progress over the last eight quarters has helped us return to top-tier industry growth exiting 2024 We are now focused on five priorities to sustain our momentum We will continue to win with our agility, deep expertise, client centricity and delivery footprint © 2025 Cognizant | Investor Day
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Markets: EMEA Manoj Mehta President, Cognizant Europe, Middle East and Africa © 2025 Cognizant | Investor Day
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EMEA market presents significant opportunity for Cognizant 6% CAGR SEME Southern Europe and Middle East France | Spain | UAE | KSA | Qatar 5% CAGR DACH Germany | Switzerland ~$400B market projected to grow at 6% CAGR Key trends driving the market opportunity 6% CAGR Northern Europe Netherlands | Belgium | Norway | Denmark Sweden | Finland 6% CAGR UK&I UK | Ireland 2024 to 2027 CAGR by region 1 Technology modernization needs Significant opportunities in areas like infrastructure modernization and security Clients ready to partner globally Many buyers are first-time outsourcers Vendor consolidation, automation -led Optimized spend via consolidated services and AI-driven efficiencies Nearshore preference Greater premium for providers with "local" delivery presence given regulatory and security requirements 1 Source: Gartner © 2025 Cognizant | Investor Day
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We are capitalizing on our key differentiators in focused regions and industries, with results demonstrating our progress Renewal retention Consistently securing renewals of > $20M TCV deals Improving discretionary spending 35%+ TCV growth ($5M –$50M deal size) New logo uptick Doubled TCV bookings for new logos Pipeline ~45% large deals; net new driven Clear focus on growth markets and industries UK&I, Germany, Nordics, Middle East P&R + Automotive, Banking, Life Sciences, Public Sector AI platforms and capabilities for vector 1 and 2 opportunities Neuro® AI Neuro IT Ops Cognizant FlowsourceTM New and differentiated capabilities through acquisitions Nearshore advantage with 14k talent in European hubs Proximity and compliance ResultsKey differentiators © 2025 Cognizant | Investor Day
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Several case studies illustrate our market momentum Accelerated s/w dev and deployment Digital customer engagement Leading ER&D work in automotive software verification and validation powered by Cognizant Mobility Large deal win and first-generation modernization work in a growing industry leveraging our full SI capability suite and scaled public sector presence Modern airport operations Output-based work leveraging differentiated digital engineering capabilities and nearshore advantage (Lithuania) Leading German OEM © 2025 Cognizant | Investor Day Implemented single, personalized and secure online child benefit service, significantly reducing claim submission and payment time (30 to 3 days) Driving ops efficiency and predictability to future-proof airport operations via a single source of truth for flight information across airlines, ground handlers, air traffic control, sector partners Leveraged machine learning and AI to accelerate fault detection (streamlining software development from weeks to hours) and data transmission over the air
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EMEA EMEA is a growth market and Cognizant is strategically poised to take advantage of the substantial opportunities and investments Focused strategy and disciplined execution Unmatched client roster of leading firms Global platform investments customized for EMEA Strong capabilities built through local investments Leading European nearshore network coupled with integrated global delivery © 2025 Cognizant | Investor Day
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Ravi Kumar S CEO, Cognizant 81 © 2025 Cognizant | Investor Day Paul Markovich President & CEO, Ascendiun Parent company of
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Partnerships and alliances Sandra Notardonato Head of Global Partnership Development and Influencer Relations © 2025 Cognizant | Investor Day
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Unlocking revenue growth and creating sustainable competitive advantage Market reach and position resulting in greater capture of expanding enterprise spend and services attach rate Strategically evolved our partner organization from a traditional support function into a core commercial growth engine, making us more relevant © 2025 Cognizant | Investor Day Cognizant value: Partner value: Innovation accelerator, tapping into new product roadmap, training programs and development funding Critical input to the “Sense → Incubate → Scale” cycle, leading to long-term relevance and competitiveness Advocacy with our enterprise buyers and sales accelerator through incentives Well recognized as a preferred partner for industry and domain expertise and a trusted advisor with portfolio of long-standing clients Unique partnering opportunities owing to our industry-leading solutions such as TriZetto®, favorably impacting large-deal wins A resource-ready workforce of experts, leading in technical proficiencies and skills certifications
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Progress over the last two years in transforming our partner ecosystem Increasing commercial momentum through joint GTM Broadening and diversifying our partner network Scaling with our high-value partnerships • Improved sales execution through stronger partner alignment • Commercializing our portfolio of co- developed industry-specific solutions • Leveraging new commercial constructs • Strengthening our partnerships with boutique, niche technology vendors • Advancing our strategic collaboration with NVIDIA, aimed at accelerating cross-industry adoption of AI technology • Launching our tech startup ecosystem • Increased market share gains within Microsoft's strategic growth initiatives • Accessing never-before-received investments from partners such as AWS • Elevating foundational partnerships with Salesforce, Oracle and SAP Building a culture of innovation capital • Achieving top three in certifications with many of our strategic partners • Expanding competencies in emerging areas such as gen AI, HPC • Developing new offerings that address business outcomes © 2025 Cognizant | Investor Day
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Our partner strategy is driving measurable business impact © 2025 Cognizant | Investor Day Funnel for demand and lead generation Partner-supported deals are creating estimated $11B in active pipeline opportunities and over $6B of TCV Improving win rates We are leveraging prescriptive, partner-specific bets to drive higher win-rates and faster sales cycles New revenue streams Portfolio of co-developed solutions is generating new streams of revenue for the business Transformational lighthouse deals Integrating partners into our large deal strategy is expanding the scale and quality of our deals
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Our heritage of continuous innovation can scale partnership impact Scale Build ecosystem of innovative startups Incubate Fund innovation Sense Detect early signals of value creation Strengthen our partners, clients and talent pool Capture new waves of technology spend at scale Create sustainable competitive advantage with centralized model © 2025 Cognizant | Investor Day
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Partners Our partnerships will accelerate our return to the Winner’s Circle Strategic transformation of our partner ecosystem is well underway and demonstrating value Our partner framework supports continuous innovation, creating a sustainable revenue growth strategy Commercial momentum with partners is poised to accelerate in the next technology wave Scalable foundation allows for repeatable success Partner-supported TCV to increase as a percentage of total bookings © 2025 Cognizant | Investor Day
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Talent Kathy Diaz Chief People Officer © 2025 Cognizant | Investor Day
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Cognizant has the talent for today and readiness for tomorrow © 2025 Cognizant | Investor Day Talent strategy to win Uniquely positioned as agentification amplifies humans Proactively sensing and reskilling to stay ahead Core sensing and learning ecosystem gives us an advantage as we navigate technology transformation Significant progress on becoming an employer of choice Differentiated employer brand and culture is behind our momentum
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We are increasingly a talent magnet and recognized as an employer of choice Top-tier awards reinforce our progress Leading associate engagement above industry and global benchmark Increasing returner rate with over 50% increase in two years, 20,000 more in pipeline Strong learning culture with more than 275,000 upskilled in 2024 Attractive, hybrid work model aligned to client needs Career development with 136,000 promoted in last three years Reinvigorated social fabric fostering engagement, innovation and community impact © 2025 Cognizant | Investor Day
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We are preparing our workforce for the next wave AI-enabled workforce strategy Evolution of roles and career paths Broader, interdisciplinary skillsets: technical, domain and operations New collaboration models: like GCCs New configurations of talent models: human capital + digital assets AI ethicist Responsible AI Domain knowledge Foundations of AI AI engineer Expertise in AI Domain knowledge Responsible AI, trust and bias Domain expert Domain knowledge and skills Foundations of AI Responsible AI New age exp. design Digital asset Agents Autonomous, adaptive, collaborative, versatile tools and systems Data architect Data architecture, engineering domain knowledge Responsible AI, trust and bias In the future of work, Cognizant talent works alongside digital assets Illustrative talent model Cognizant’s talent model is built to adapt to future needs Client © 2025 Cognizant | Investor Day
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Our future-ready talent strategy positions us to win • Learning and entrepreneurial spirit in DNA • Gen AI learning ecosystem, including proprietary and partner programs • Tailored, high-value learning • Learning infrastructure to enable clients to upskill • Proactively upskill on next-horizon skills • Link associates’ skills with demand • 2.7M skills added to individual profiles by associates • Faster fulfillment, improved pricing • Employer brand as a talent magnet for lifelong learners • Expand breadth through modern career paths and rotations • Scale and strengthen self-sustaining innovation culture • Blend of technical and non-technical backgrounds • Local talent, including Tier 2 cities • Continue returner momentum • Offer nearshore and offshore capability for co-creation Learning engine Upskill at scale on gen AI and future skills for all levels Talent intelligence Patent pending skilling solution using gen AI Growing our people Continuously expand breadth of experience Talent funnel Build a future workforce with broad-based skills © 2025 Cognizant | Investor Day
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We are ready for the future and leading the way for our clients Our people have a winning combination Entrepreneurial and empowered Learning in our DNA Gains in psychological safety, customer centricity and innovation Staying ahead of the future with our talent approach Always sensing Always upskilling Always investing in talent Delivering superior outcomes for clients Anticipate needs Sought-after skills Grassroots innovation © 2025 Cognizant | Investor Day
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Break © 2025 Cognizant | Investor Day
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Financials Bringing it all together Jatin Dalal Chief Financial Officer © 2025 Cognizant | Investor Day
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Significant progress achieved • Bookings, revenue and margins Investing in breadth and depth of portfolio • Strengthened portfolio across capabilities and industries Financial roadmap to drive shareholder value • Accelerate revenue growth • Expand margins and fund investments • Balanced and disciplined capital allocation Enhancing long-term value creation © 2025 Cognizant | Investor Day
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© 2025 Cognizant | Investor Day We have taken strategic actions since 2022 Investments in talent, gen AI platforms and inorganic capabilities Built large deal infrastructure Strengthened partnerships and alliances Completed NextGen to become cost- competitive
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17 29 0 5 10 15 20 25 30 35 2022 2024 We delivered strong bookings and large deal growth 2022 2024 $24.1B $27.1B 20% 30% 1.2x 1.4x 2022 2024 Bookings1 # of $100M+ TCV deals Book-to-bill1 >$50M <$50M 1 See "About Non-GAAP Financial Measures and Performance Metrics" at the end of this presentation for more information. © 2025 Cognizant | Investor Day
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(2.4%) (1.2%) (0.5%) 2.7% 6.7% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 This has supported improved revenue growth over the last year Year-over-year revenue ~(3%) ~(2%) ~(1%) ~0.5% ~2% Organic constant currency growth1 ~500 basis point improvement Constant currency growth1 1 See "About Non-GAAP Financial Measures and Performance Metrics" at the end of this presentation for more information. Reported revenue growth for Q4'23, Q1'24, Q2'24, Q3'24 and Q4'24 was (1.7%), (1.1%), (0.7%), 3.0% and 6.8%, respectively. © 2025 Cognizant | Investor Day© 2025 Cognizant | Investor Day
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14.6% 15.1% 15.2% 15.3% 15.7% Q1'23 Q1'24 Q2'24 Q3'24 Q4'24 And delivered better profitability through our NextGen program and operational efficiency Adjusted operating margin1 trend In 2024, delivered 20 bps of adjusted operating margin expansion, net of ~30 bps impact from investment in Belcan2 NextGen ✓ Reduced SG&A as % of revenue by 140 bps over last 2 years Operational excellence ✓ Reduced quarterly bench costs by 30% Y oY in Q4’24 Enhanced productivity ✓ Increased adjusted operating income per employee1 by 6.5% Y oY to ~$8.8K in 2024 1 See “About Non -GAAP Financial Measures and Performance Metrics” at the end of this presentation for more information and reconci liations to the most directly comparable GAAP financial measures, as applicable. GAAP margin for Q1'23, Q1'24, Q2'24, Q3'24 and Q4'24 was 14.6%, 14.6%, 14.6%, 14.6% and 14.8%, respectively. GAAP operating income per employee increased by 10.5% YoY to ~8.5K in 2024. 2 Acquisition closed in August 2024; partial year impact © 2025 Cognizant | Investor Day
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Capability Key initiatives Growth driver AI Launched AI Innovation Labs and Cognizant FlowsourceTM Investing $1B+ to lead the AI transformation Trained ~230K associates to date 3 vector opportunity Embedded engineering T op-five player in the ~$280B ER&D market1 Diversified into products and resources ~10% market CAGR¹ Data and cloud (infrastructure) Delivery leadership investments Strengthened hyperscaler partnerships ~8% market CAGR¹ Operations Enabling best-in-class business operations via 200+ internal AI use cases NextGen program enhancements ~7% market CAGR¹ Application services Leading ServiceNow provider Launch of Cognizant MomentTM $2T technical debt to be eliminated While we invest in our capabilities and scale in attractive markets © 2025 Cognizant | Investor Day Attractive end marketsEnhanced capabilities 1 Projected TAM and CAGR through 2027 2 CAGR 2024-2027 Source: Gartner, IDC, FactSet, Cognizant estimates Cognizant mix (FY24) and select growth drivers (est. addressable market CAGR2) 24% Products & Resources Aerospace & Defense and Industrial Manufacturing addressable market expected to grow 12% and 8% CAGR, respectively ’24–27 17% Comms, Media & Tech Online media addressable market expected to grow 9% CAGR from ’24–27 30% Health Sciences Provider addressable market expected to grow 9% CAGR, ’24–27 29% Financial Services Banking addressable market expected to grow 8% CAGR, ’24–27
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Supported by strategic acquisitions to strengthen capabilities in key high- growth areas We look for acquisitions that… • Advance our strategic priorities: capability, vertical, regional and talent objectives • Allow us to access compelling synergy opportunities within strategic growth accounts • Support sustained revenue growth and margin expansion • Demonstrate attractive expected returns … thereby contributing to our success ✓ Helping win large deals: Influenced a significant portion of $100M+ TCV deals won in 2024 ✓ Accelerating growth at our largest clients: Services built or enhanced by M&A grew significantly faster than legacy services at our top clients Embedded engineering ~$1.8B deployed since 2020 Application services ~$1.4B deployed since 2020 Digital engineering ~$0.7B deployed since 2020 Cloud and data ~$0.9B deployed since 2020 Our inorganic investments are supporting sustained growth © 2025 Cognizant | Investor Day© 2025 Cognizant | Investor Day
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Winner’s circle This has put us on our path to returning to the winner’s circle © 2025 Cognizant | Investor Day 1 Cognizant and peer revenue growth rates are total company in constant currency 2 Peer group includes Accenture, Capgemini, CGI Group, DXC, EPAM, Genpact, HCL, Infosys, Tata Consultancy Services and Wipro Top Tier defined as top 4 Cognizant vs. peer average1 2022 ~(8%) 2023 ~(3%) 2024 ~+0.5% 2025 2026 2027 Above peer average 10th 8th 6th Cognizant revenue growth vs. peer average1,2 What this looks like • T op-tier revenue growth • Gain market share • Sustain large deal momentum • Skilling for the future • Gradual margin expansion • EPS growth > revenue growth Revenue growth rank vs. peers1,2 Top tier
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Pyramid optimization T ooling and training for recent grads Improved utilization and role rotation Portfolio evolution Evolving commercial model; increase managed services and fixed bid mix People + platform solutioning AI and automation Enhance productivity and streamline process workflows by integrating AI Optimize resource deployment and bench management through AI and automation Operating leverage Sustain lean and agile cost structure SG&A growth < revenue growth We expect to deliver 10 to 30 basis points of margin expansion annually 15.1% 15.3% 2023 2024 2025* 2026 & 2027 * Guidance range provided on February 5, 2025 10–30 bps annual margin expansion 15.5%–15.7% Adjusted operating margin1 outlook Key margin drivers 1 See “About Non-GAAP Financial Measures and Performance Metrics” at the end of this presentation for more information and a reconciliation to the most directly comparable GAAP financial measure. GAAP margin for FY 2023 and 2024 was 13.9% and 14.7%, respectively. © 2025 Cognizant | Investor Day
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Maintaining a balanced capital allocation framework to support value creation 29% 21% 25% 51% 22% 25% 20% 57% 50% 2023 2024 Target Dividends Share repurchases Acquisitions Expect to deploy ~100% of free cash flow 1 annually % of capital deployed Robust cash flow generation • Annual free cash flow1 target of 90% to 100% of net income2 • Strong balance sheet and low leverage provides financial flexibility Organic and inorganic investment to support growth • AI, cloud modernization and industry-specific digital solutions • Disciplined, value-enhancing M&A aligned with strategic priorities Return of capital to shareholders • $2 billion increase to share repurchase authorization • Now expect to return $1.7 billion in 2025, including $1.1 billion in share repurchases, an increase of $500 million from prior expectation • Six consecutive years of dividend increases, +6% CAGR since 2019 1 See "About Non -GAAP Financial Measures and Performance Metrics" at the end of this presentation for more information. 2 Assumes no material change to t ax rate and applicable tax laws and regulat ions. $2.9B returned through share repurchases and dividends in 2023 and 2024 © 2025 Cognizant | Investor Day
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Top-tier revenue growth by 2027, driven by organic revenue growth1,2 Annual adjusted operating margin expansion of 10–30 bps, supports EPS growth above revenue2 1 Peer group includes Accenture, Capgemini, CGI Group, DXC, EPAM, Genpact, HCL, Infosys, Tata Consultancy Services and Wipro 2 See "About Non-GAAP Financial Measures and Performance Metrics" at the end of this presentation for more information. This assumes no material change to tax rate and applicable tax laws and regulations. 90%–100% annual free cash flow conversion2 supporting balanced capital allocation Driving long-term shareholder value © 2025 Cognizant | Investor Day
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Growing market Well positioned to capture multi-trillion-dollar market opportunity Investment highlights © 2025 Cognizant | Investor Day Demonstrated results We’re building momentum– significant margin improvement and revenue growth Differentiated offerings Our capabilities are differentiated across core industries, high - growth segments and geographies Clear strategy We have a clear path to amplify talent, scale innovation and accelerate growth Driving innovation Investing to lead the next wave of transformation, focused on AI and embedded engineering Balanced capital allocation Balanced across growth investments, acquisitions, share repurchases and dividends
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Q&A © 2025 Cognizant | Investor Day
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Appendix: About non-GAAP financial measures and performance metrics © 2025 Cognizant | Investor Day
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About non-GAAP financial measures and performance metrics Non-GAAP financial measures To supplement our financial results presented in accordance with GAAP, this presentation includes references to the following measures defined by the Securities and Exchange Commission as non -GAAP financial measures: Adjusted Operating Margin, free cash flow, constant currency revenue growth, organic constant currency revenue growth and Adjusted Operating Income per employee. These non -GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calcu lated in accordance with GAAP, and may be different from non -GAAP financial measures used by other companies. In addition, these non -GAAP financial measures should be read in conjunction with our financial statements prepared i n accordance with GAAP. The reconciliations of our non -GAAP financial measures to the corresponding GAAP measures should be carefully evaluated. Our non-GAAP financial measures Adjusted Operating Margin and Adjusted Income from Operations excludes unusual items, such as Ne xtGen charges. Free cash flow is defined as cash flows from operating activities net of purchases of property and equipment. Constant currency revenue growth is defined as revenues for a given period restated at the comparativ e period’s foreign currency exchange rates measured against the comparative period's reported revenues. Organic revenue is defined as revenues for a given period, excluding revenues from acquisitions that were completed in the 12 months preceding the beginning of the reporting period, and organic revenue growth is organic revenue measured against the comparative period's reported revenues. Adjusted Operating Income per employee is defined as Adjusted In come from Operations for a given period divided by the average employee headcount of stated period. Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced tr ansparency into our operating results. For our internal management reporting and budgeting purposes, we use various GAAP and non -GAAP financial measures for financial and operational decision -making, to evaluate period -to-period comparisons, to determine portions of the compensation for our executive officers and for making comparisons of our operating results to those of our competitors. Accordingly, we believe that the presentation of our non-GAAP measures, which exclude certain costs, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations. A limitation of using non -GAAP financial measures versus financial measures calculated in accordance with GAAP is that non -GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and may exclude costs that are recurring such as our net non -operating foreign currency exchange gains o r losses. In addition, other companies may calculate non -GAAP financial measures differently than us, thereby limiting the usefulness of these non -GAAP financial measures as a comparative tool. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from our non -GAAP financial measures to allow investors to evaluate such non -GAAP financial measures. Performance metrics Bookings are defined as total contract value (or TCV) of new contracts, including new contract sales as well as renewals and expansions of existing contracts. Bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large contracts. Our book -to-bill ratio is defined as bookings for the trailing twelv e months divided by revenue for the same period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. The extent and timing of conversion of bookings to revenues may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volum es anticipated at the time of sale, and contract modifications, including terminations, over the lifetime of a contract. The majority of our contracts are terminable by the client on short notice often without penalty, and some without notice. We do not update our bookings for subsequent terminations, reductions or foreign currency exchange rate fluctuations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenues. However, management believes that it is a key indicator of potential future revenues and provides a useful indicator of the volume of our business over time. © 2025 Cognizant | Investor Day
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Reconciliations of non-GAAP financial measures (in millions) Three months ended: Full year: Mar 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Guidance full year 2025(1) GAAP income from operations $ 2,689 $ 2,892 NextGen charges(a) 229 134 Adjusted income from operations $ 2,918 $ 3,026 GAAP operating margin 14.6 % 14.6 % 14.6 % 14.6 % 14.8 % 13.9 % 14.7 % NextGen charges(a) — 0.5 0.6 0.7 0.9 1.2 0.6 —% Adjusted operating margin 14.6 % 15.1 % 15.2 % 15.3 % 15.7 % 15.1 % 15.3 % 15.5% - 15.7% (1) A full reconciliation of Adjusted Operating Margin guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to unusual items, and such adjustments may be significant. Guidance range provided on February 5, 2025 Notes: (a) NextGen charges include employee separation costs, facility exit costs, and third-party and other costs. The program concluded on December 31, 2024. The total costs related to the NextGen program are reported in "restructuring charges" in our unaudited consolidated statements of operations. Reconciliation of adjusted operating income per employee FY 2023 FY 2024 Adjusted income from operations $ 2,918 M $ 3,026 M Average employee headcount* 351,500 342,250 Adjusted operating income per employee $ 8,302 $ 8,841 * We had approximately 355,300, 347,700 and 336,800 employees at the end of 2022, 2023 and 2024, respectively. © 2025 Cognizant | Investor Day
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Reconciliations of non-GAAP financial measures Reconciliation of organic constant currency revenue growth Three months ended: Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Reported revenue growth (1.7%) (1.1%) (0.7%) 3.0% 6.8% Constant currency revenue growth (2.4%) (1.2%) (0.5%) 2.7% 6.7% Approximate contribution of recently completed acquisitions(a) 0.9% 0.7% 0.6% 2% 4.5% Approximate organic constant currency revenue growth* (3%) (2%) (1%) 0.5% 2% © 2025 Cognizant | Investor Day (a) Recently completed acquisitions are acquisitions that were completed in the 12 months preceding the beginning of the reporting period. * Amounts do not foot due to rounding.