What Cognizant Technology Solutions Corporation told the SEC could break it.

The legal/regulatory landscape for AI is rapidly evolving and varies by jurisdiction (EU AI Act applying from 2025, emerging U.S. state AI laws); these may impose obligations on Cognizant as a developer and user of AI/automated-decision technologies central to its services.

“Authorities around the world are applying, or considering applying, laws and regulations related to IP, cybersecurity, export controls, privacy, data security and data protection to AI and automated decision-making technologies, as well as adopting AI-specific regulatory frameworks, such as emerging U.S. state AI laws and the EU AI Act which entered into force in 2024 and parts of which began applying in 2025.”

Changes in immigration laws and policies have limited the availability of certain U.S. work visas, exacerbating competition for skilled labor — a key risk for Cognizant's India-centric global delivery model that relies on moving talent to client sites.

“In addition, changes in immigration laws or policies, or varying applications of immigration laws and policies, have limited the availability of certain work visas in the U.S., which could exacerbate competition for skilled labor.”

Cognizant's revenues are highly dependent on clients in the U.S. and Europe; adverse economic, geopolitical, inflation, trade-dispute, or disaster developments in those geographies could prompt client spending cuts that materially harm its business.

“Our revenues are highly dependent on clients located in the United States and Europe, and any adverse economic, geopolitical or legal uncertainties or adverse developments, including due to the uncertainty related to the economic environment and inflation, natural or man-made disasters and extreme weather, geopolitical events and conflicts, labor or trade disputes or similar events, may cause clients in these geographies to reduce their spending and materially adversely impact our business.”

Cognizant competes for skilled employees across multiple industries and against clients' GCCs; elevated attrition (Tech Services voluntary attrition 13.9% in 2025) raises hiring/compensation costs it may not recover through price increases, pressuring margins.

“Our business has experienced in the past and may experience in the future employee attrition at levels which could cause us to incur increased costs to hire new employees with the desired skills. We may not be successful in recovering through price increases or other mechanisms any increases we make to compensation, which could adversely affect our profitability and operating margin.”

Cognizant's foreign subsidiaries (notably India delivery) carry non-USD functional currencies translated into USD, exposing reported results to exchange-rate movements between the USD and currencies such as the Indian rupee and Euro.

“Foreign Currency. The assets and liabilities of our foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at current exchange rates while revenues and expenses are translated at average monthly exchange rates.”