Revenues and Trade Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2025


	Three Months Ended March 31, 2025

(in millions)	Health Sciences		Financial Services		Products and Resources		Communications, Media and Technology		Total
Revenues
Geography:
North America	$	1,330	$	1,043	$	911	$	570	$	3,854
United Kingdom	49		153		137		118		457
Continental Europe	160		147		153		33		493
Europe - Total	209		300		290		151		950
Rest of World	32		119		77		83		311
Total	$	1,571	$	1,462	$	1,278	$	804	$	5,115

Service line:
Consulting and technology services	$	870	$	1,020	$	887	$	449	$	3,226
Outsourcing services	701		442		391		355		1,889
Total	$	1,571	$	1,462	$	1,278	$	804	$	5,115

Type of contract:
Time and materials	$	481	$	764	$	556	$	434	$	2,235
Fixed-price	791		651		634		334		2,410
Transaction or volume-based	299		47		88		36		470
Total	$	1,571	$	1,462	$	1,278	$	804	$	5,115


	Three Months Ended March 31, 2024

(in millions)	Health Sciences		Financial Services		Products & Resources		Communications, Media and Technology		Total
Revenues
Geography:
North America	$	1,209	$	977	$	773	$	562	$	3,521
United Kingdom	44		143		131		138		456
Continental Europe	135		151		145		52		483
Europe - Total	179		294		276		190		939
Rest of World	28		114		84		74		300
Total	$	1,416	$	1,385	$	1,133	$	826	$	4,760

Service line:
Consulting and technology services	$	802	$	953	$	736	$	464	$	2,955
Outsourcing services	614		432		397		362		1,805
Total	$	1,416	$	1,385	$	1,133	$	826	$	4,760

Type of contract:
Time and materials	$	490	$	783	$	470	$	467	$	2,210
Fixed-price	670		556		582		328		2,136
Transaction or volume-based	256		46		81		31		414
Total	$	1,416	$	1,385	$	1,133	$	826	$	4,760

The following table shows significant movements in the capitalized costs to fulfill for the three months ended March 31:

Costs to obtain contracts were immaterial for the periods disclosed.

The table below shows significant movements in contract assets (current and noncurrent) for the three months ended March 31:


(in millions)	2025		2024
Beginning balance	$	386	$	316
Revenues recognized during the period but not billed	327		248
Amounts reclassified to trade accounts receivable	(259)		(180)


Ending balance	$	454	$	384

The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the three months ended March 31:


(in millions)	2025		2024
Beginning balance	$	480	$	427
Amounts billed but not recognized as revenues	374		311
Revenues recognized related to the beginning balance of deferred revenue	(302)		(262)
Amounts acquired in business combinations	—		9

Ending balance	$	552	$	485

The following table presents the activity in the allowance for credit losses for trade accounts receivable for the three months ended March 31:


(in millions)	2025		2024
Beginning balance	$	26	$	32
Credit loss expense (1)	4		1
Write-offs charged against the allowance	(2)		(3)

Ending balance	$	28	$	30

(1)Reported in "Selling, general and administrative expenses" in our unaudited consolidated statements of operations.

COGNIZANT TECHNOLOGY SOLUTIONS CORP 10-Q