What does it mean to

What does it mean to be more cognizant?

Drawing on extensive knowledge of our clients' industries, business models and technology environments, we've come to see that inside every business is a more cognizant one. A more cognizant business is future-oriented, responds rapidly to changes in its environment, excels at perceiving what customers will want next, and is continuously alert to everything going on across its operations--all because the enterprise is digital to the core.

When a company is more cognizant, it knows more, so it can do more--for its customers, employees and owners. It's literally built to stay ahead of what's ahead.

To our

shareholders

On April 1, 2019, I became the fourth Chief Executive Officer of Cognizant since its founding 25 years ago. I am delighted to lead this remarkable company in its next stage of innovation and growth.

I assumed this role following Francisco D'Souza's 12-year tenure as CEO. With Francisco at the helm, Cognizant has become a global force in technology services and a trusted partner to clients as they design and run stronger, more competitive businesses. Cognizant's annual revenues grew more than 10-fold from $1.4 billion in 2006 to $16.1 billion in 2018, moving the company into the Fortune 200. Cognizant scaled its talent base from just under 40,000 to more than 280,000 associates, broadened its expertise to more than 20 industries, and extended its operations to more than 37 countries. Perhaps most important, Francisco shaped and embodied Cognizant's client-first, entrepreneurial, and collaborative culture. I am pleased that Cognizant will continue to benefit from Francisco's perspective as Vice Chairman of our Board, and I am grateful for his advice and support during this transition.

My mission is to extend Cognizant's long track record of success far into the future. To do so, Cognizant must continue to serve as a trusted partner and advisor to businesses that strive to lead their industries by becoming increasingly productive and innovative. We are expert at helping clients digitize their products and services, personalize their customer experiences, automate their essential processes, and modernize their technology infrastructures. Above all, we enable them to deepen connections with their clients in ways that drive greater customer intimacy and spur growth.

As a result, our clients are able to achieve meaningful outcomes like launching products and solutions faster than they used to release prototypes, shortening the length of clinical trials to speed treatments to market, and significantly reducing the incidence of credit card and insurance fraud.

Our three practice areas, which work across the company's industry-aligned business segments, are:

? Cognizant Digital Business, which helps our clients apply digital technology to transform their products and customer experiences, driving new levels of revenue growth and customer satisfaction.

? Cognizant Digital Operations, which helps clients infuse their business processes with agility, intelligence, and automation.

? Cognizant Digital Systems and Technology, which enables clients to build the adaptive, cloud-enabled, secure, and efficient technology backbone needed to run a modern digital enterprise.

Cognizant 2018 Annual Report / 01

We focus our investments on the six advanced capabilities clients need to become fully digital businesses: core modernization, digital engineering and connected products, artificial intelligence (AI) and analytics, intelligent process automation, industry and platform solutions, and interactive customer experiences. (Our work in each is described on pages 4-15.) These six capabilities form the core of Cognizant's digital strategy, which we are committed to executing. We see ample headroom for growth in all of these areas, which offer strong margin profiles and a combined market opportunity that we estimate to be in the hundreds of billions of dollars.

During 2018, Cognizant diversified its revenue base and client roster, invested for growth, and further strengthened its ability to partner with clients on high-value digital initiatives, from strategy through execution. We also intensified our focus on our 100 largest clients, instilled greater operating discipline across the company, expanded our local talent and innovation hubs, and acquired five companies, among them Softvision.

With a significant presence in the software engineering hub of Romania, Cognizant Softvision is one of the top digital engineering companies in the world. We have also continued to invest in industry expertise with our acquisition of Bolder Healthcare Solutions, a leading provider of end-to-end revenue cycle management solutions to hospitals and physicians.

Cognizant's full-year 2018 revenue grew 8.9%, or 8.5% in constant currency,1 to $16.13 billion, with digital revenue growing nearly three times faster and accounting for about 30% of total annual revenue. GAAP operating margin was 17.4%, and GAAP EPS was $3.60. During the year, the company returned $1.6 billion to shareholders through our capital return program.

1 See "Non-GAAP Financial Measures" on pages 29-30 of the Annual Report on Form 10-K, which is included in this Annual Report.

Although I've been in my new role just a few weeks, I have learned how deeply intertwined we are with our clients. It is clear to me that Cognizant's future lies in doing what we excel at: investing in talented, diverse, and engaged associates in an inclusive culture, identifying client needs and industry trends, and responding quickly with tailored solutions that facilitate client success.

I'm fortunate to be surrounded by a deeply experienced leadership team, a fully engaged Board of Directors, and, of course, my 280,000 passionate colleagues around the world who share the work we are privileged to do every day. I'm a firm believer that no company can live on its legacy, however great. We are only as good as our future. I am committed to advancing Cognizant's pivot to digital and spurring the next phase of success by staying focused on our associates, clients, and shareholders.

I see Cognizant as a preeminent builder of the global digital economy and a partner of choice for the leading institutions that advance our world. We are also a powerful force for the positive role technology can play in society and will continue to serve the many communities in which we operate through the work of our foundations, our global investments in STEM education, and Cognizant Outreach, our associateled volunteer organization. We are working energetically to ensure that this bright future becomes a reality.

I am absolutely thrilled to be serving as Cognizant's CEO. Thank you for the opportunity to earn your confidence and trust.

Brian Humphries Chief Executive Officer April 18, 2019

Cognizant 2018 Annual Report / 03

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