Cognizant Technology Solutions (CTSH) risk factors: FY2025 10-K

1. Our results of operations could be adversely affected by macroeconomic and geopolitical conditions globally and in particular in the markets in which our clients and operations are concentrated.reworded
2. We face intense and evolving competition and our service offerings must keep pace with significant technological advances in the rapidly changing markets we compete in.
3. Our use of AI technologies may not be successful and may present business, financial, legal and reputational risks.AI
4. If we are unable to attract, train and retain skilled employees to satisfy client demand, including highly skilled technical personnel and personnel with experience in key AI and digital areas, as well as senior management to lead our business globally, our business and results of operations may be materially adversely affected.AI
5. Many of our contracts with clients are short-term, and our business, results of operations and financial condition could be adversely affected if our clients terminate their contracts on short notice.
6. Our failure to meet specified service levels or milestones required by certain of our client contracts may result in our client contracts being less profitable, potential liability for penalties or damages or reputational harm.
7. We may not be able to achieve our profitability goals and maintain our capital return strategy.
8. We face challenges related to growing our business organically as well as inorganically through acquisitions, and we may not be able to achieve our targeted growth rates or successfully acquire, invest in or integrate businesses.reworded
9. We face legal, reputational and financial risks if we fail to protect client and/or Cognizant data from cybersecurity incidents.Cybersecurity
10. Fluctuations in foreign currency exchange rates, or the failure of our hedging strategies to mitigate such fluctuations, can adversely impact our profitability, results of operations and financial condition.
11. Pandemics, epidemics or other outbreaks of disease have had and may in the future have a material adverse impact upon our business, liquidity, results of operations and financial condition.
12. Extreme weather and risks arising from the transition to a lower-carbon economy may impact our business.reworded
13. Evolving and conflicting sustainability and societal related expectations or standards could adversely affect our business or damage our reputation.new
14. If our risk management, business resilience and disaster recovery plans are not effective and our global delivery capabilities are impacted, our business and results of operations may be materially adversely affected and we may suffer harm to our reputation.reworded

Read these in Item 1A · See the changes

1. A substantial portion of our employees in the United States, United Kingdom, EU and other jurisdictions rely on visas to work in those areas such that any restrictions on such visas or immigration more generally or increased costs of obtaining such visas or increases in the wages we are required to pay employees on visas may affect our ability to compete for and provide services to clients in these jurisdictions, which could materially adversely affect our business, results of operations and financial condition.
2. Anti-outsourcing legislation, if adopted, and negative perceptions associated with offshore outsourcing could impair our ability to serve our clients and materially adversely affect our business, results of operations and financial condition.
3. We are subject to numerous and evolving legal and regulatory requirements and client expectations in the many jurisdictions in which we operate, and violations of, unfavorable changes in or an inability to meet such requirements or expectations could harm our business.
4. Changes in tax laws or in their interpretation or enforcement, failure by us to adapt our corporate structure and intercompany arrangements or adverse outcomes of tax audits, investigations or proceedings could have a material adverse effect on our effective tax rate, results of operations and financial condition.
5. Our business subjects us to considerable potential exposure to litigation and legal claims and we could be materially adversely affected if we incur legal liability.reworded
6. If we infringe upon the IP rights of others or our IP rights are infringed upon, our business may be adversely affected.

Read these in Item 1A · See the changes

Headings in the FY2024 10-K with no match this year.

1. Our NextGen program and the associated reductions in headcount and consolidation of office space could disrupt our business and may not result in anticipated savings.
2. Failure to meet ESG expectations or standards or achieve our ESG ambitions could adversely affect our business or damage our reputation.