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Cognizant Reports Fourth Quarter and Full-Year 2024 Results

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Fourth quarter revenue of $5.1 billion increased 6.8% year-over-year or 6.7% in constant currency1, at the high end of our guidance rangeFull-year revenue of $19.7 billion increased 2.0% year-over-year or 1.9% in constant currencyFull-year operating margin of 14.7% increased 80 basis points year-over-year; Adjusted Operating Margin1 of 15.3% increased 20 basis points year-over-yearTrailing 12-month bookings of $27.1 billion, up 3% year-over-year, driven by 11% year-over-year fourth quarter bookings growth$1.2 billion returned to shareholders through share repurchases and dividends in 2024Cash dividend increased 3% to $0.31 per share for Q1 20252025 revenue growth guidance of 3.5% to 6.0% in constant currency2025 Adjusted Operating Margin guidance of 15.5% to 15.7%, expansion of 20 to 40 basis points

TEANECK, N.J., Feb. 5, 2025 /PRNewswire/ — Cognizant (Nasdaq: CTSH), one of the world’s leading professional services companies, today announced its fourth quarter and full-year 2024 financial results.

“I am deeply grateful to our employees for their commitment to our strategic priorities and rigorous execution, which drove fourth quarter revenue growth to the high end of our guidance range. We exited the year with momentum — closing a record 29 large deals during the year — highlighting the effectiveness of our strategy,” said Ravi Kumar S, Chief Executive Officer. “In 2024, we accelerated investments in our AI-led platforms and added new capabilities with the acquisitions of Thirdera and Belcan, further strengthening and diversifying our portfolio. Our focus on client centricity, agility, and innovation is helping clients unlock the next wave of hyper productivity and enterprise-grade generative AI adoption.”

$ in millions, except per share data

Q4 2024

Q4 2023

FY 2024

FY 2023

Revenue

$5,082

$4,758

$19,736

$19,353

Y/Y Change

6.8 %

(1.7 %)

2.0 %

(0.4 %)

Y/Y Change CC1

6.7 %

(2.4 %)

1.9 %

(0.3 %)

GAAP Operating Margin

14.8 %

15.2 %

14.7 %

13.9 %

Adjusted Operating Margin1

15.7 %

16.1 %

15.3 %

15.1 %

GAAP Diluted EPS

$1.10

$1.11

$4.51

$4.21

Adjusted Diluted EPS1

$1.21

$1.18

$4.75

$4.55

Operating cash flow

$920

$737

$2,124

$2,330

Free cash flow1

$837

$659

$1,827

$2,013

For the full year 2024, our recently completed acquisitions contributed approximately 200 basis points to the year-over-year change in revenue.

“We ended the year strong, delivering Adjusted Operating Margin of 15.7% in the fourth quarter and 20 basis points expansion for the full year, above our guidance. Free cash flow represented more than 150% of net income, our highest quarter since Q3 2021,” said Jatin Dalal, Chief Financial Officer. “We expect that our improved cost structure, achieved through the successful completion of our NextGen program, will help us sustain our pace of strategic investments in support of profitable growth. Our initial 2025 guidance calls for 3.5% to 6.0% constant currency revenue growth and 20 to 40 basis points of full-year Adjusted Operating Margin expansion.”

Bookings

Bookings in the fourth quarter increased 11% year-over-year. On a trailing-twelve-month basis, bookings increased 3% year-over-year to $27.1 billion, which represented a book-to-bill of approximately 1.4x. During the quarter, Cognizant signed ten large deals, which are deals with total contract value of $100 million or greater.

Employee Metrics

Voluntary attrition – Tech Services on a trailing-twelve months basis was 15.9% as compared to 13.8% for the period ended December 31, 2023. Total headcount as of December 31, 2024 was 336,800.

Return of Capital to Shareholders

The Company repurchased 1.8 million shares for $140 million during the fourth quarter under its share repurchase program. As of December 31, 2024, there was $1.2 billion remaining under the share repurchase authorization. In February 2025, the Company declared a quarterly cash dividend of $0.31 per share, a 3% increase year-over-year, for shareholders of record on February 18, 2025. This dividend will be payable on February 26, 2025.

First Quarter and Full-Year 2025 Guidance2
(all growth rates year-over-year)

First quarter revenue is expected to be $5.0 – $5.1 billion, growth of 5.6% to 7.1%, or 6.5% to 8.0% in constant currency.Full-year 2025 revenue is expected to be $20.3 – $20.8 billion, growth of 2.6% to 5.1%, or 3.5% to 6.0% in constant currency.Full-year 2025 Adjusted Operating Margin3 is expected to be from 15.5% to 15.7%, or 20 to 40 basis points of expansion.Full-year 2025 Adjusted Diluted EPS3 is expected to be in the range of $4.90 to $5.06.

 

1 Constant currency (“CC”) revenue growth, Adjusted Operating Margin, Adjusted Diluted Earnings Per Share (“Adjusted Diluted EPS”) and free cash flow are not measures of financial performance prepared in accordance with GAAP. A full reconciliation of Adjusted Operating Margin guidance to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts. See “About Non-GAAP Financial Measures and Performance Metrics” for more information and a partial reconciliation to the most directly comparable GAAP financial measure at the end of this release.

2 Guidance as of February 5, 2025

3 A full reconciliation of Adjusted Operating Margin and Adjusted Diluted EPS guidance to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts. See “About Non-GAAP Financial Measures and Performance Metrics” for more information and a partial reconciliation to the most directly comparable GAAP financial measures at the end of this release.

Select Company, Client and Partnership Announcements 

Cognizant is building a portfolio of capabilities combined with deep domain expertise to harness and advance an AI-led future. Cognizant’s progress has been accelerated through the following recent platform enhancements, partnerships and client wins:

Platform Enhancements and Partnerships

Announced a new collaboration with Siemens Digital Industries Software to integrate Siemens’ PAVE360™ into Cognizant’s software-defined vehicle (SDV) solution accelerator. This enhanced accelerator, featuring Siemens’ Simcenter™ Prescan for sensor modeling and scenario-based testing, aims to meet rising customer demands by accelerating the SDV development cycle.Launched Stores 360, a comprehensive retail solution designed to streamline store operations, enhance employee productivity and improve customer experiences. Developed in collaboration with ServiceNow, the solution leverages the Cognizant Neuro® AI platform and generative AI-powered Now Assist solution to support key touchpoints in the retail value chain, enabling frictionless and efficient operations. It is designed to elevate retail store operations and improve frontline employee productivity and customer experience with integrated, automated, predictive and gen AI capabilities.Announced Cognizant’s Neuro® AI Multi-Agent Accelerator and Multi-Agent Service Suite. These new offerings accelerate the development and adoption of AI agents, helping empower businesses to transform their business processes using AI agents for adaptive operations, real-time decision-making, and personalized customer experiences to support all facets of business, from IT and finance to sales and marketing.Announced a strategic alliance with CrowdStrike, a global cybersecurity leader, to drive enterprise security transformation by delivering cybersecurity services, powered by the AI-native CrowdStrike Falcon® cybersecurity platform. Cognizant will work to enable organizations to streamline security operations and threat mitigation, consolidate fragmented legacy point products, reduce the complexity of managing cybersecurity programs, and strengthen cybersecurity posture, leveraging Falcon® Next-Gen SIEM and Falcon® Cloud Security.Announced an expanded partnership with Zscaler, a cloud security company, with the goal of helping enterprises across industries simplify and transform their security posture with an advanced, AI-enabled zero trust cloud security platform to address evolving cyber threats. Cognizant and Zscaler will offer coordinated solutions and services designed to reduce overall security complexity, maximize security posture, and deliver comprehensive, cost-effective outcomes rapidly and at scale.Announced a new FinOps1 Center of Excellence (CoE), built on IBM’s leading FinOps software and Cognizant’s cloud and developer platforms. Alongside the CoE announcement, Cognizant launched extensions of its Cognizant® Skygrade™ and Flowsource™ platforms that are designed to integrate with IBM Apptio, Turbonomic, watsonx.governance and watsonx Code Assistant for Z. The solutions bring together Cognizant’s deep software engineering capabilities with IBM’s powerful tools to help enterprise clients transition to modern architectures and streamline cloud management operations.Announced an expanded agreement with Medidata, a leader of clinical trial solutions to the life sciences industry, to provide support for Medidata’s life sciences clients. As part of the multi-year renewal agreement, Cognizant is providing a dedicated team of Medidata Platform specialists to support their clients in pharmaceutical, biotech, medical device, contract research organizations, and patients using Medidata services.

Client Wins

Renewed strategic partnership with McDonald’s Corporation, the world’s leading food service retailer. As part of the multi-year agreement, Cognizant will focus on leveraging cutting-edge technology to enhance McDonald’s staff enablement, customer experience, and operational efficiency. Cognizant plans to continue supporting McDonald’s in various important enterprise areas, including Global Finance Systems and Human Capital Management. Cognizant will leverage its platforms, including Neuro® IT Operations and Skygrade™, to drive better observability, reliability and agility at McDonald’s.Expanded its longstanding relationship with biopharmaceutical leader Gilead Sciences. Cognizant will provide AI-driven solutions to enhance customer service, employee engagement, and business value. Gilead is expected to enhance its efficiency through leveraging Cognizant’s expertise in AI and advanced technology applications.Extended collaboration with Savvas Learning Company, a leading K-12 learning solutions provider, to help optimize its back-office IT operations. A trusted Savvas partner since 2019, Cognizant has entered into a multi-year agreement with the company through which Cognizant Flowsource™ will aim to enhance platform engineering capabilities, improve efficiencies, and drive automation for Savvas. The collaboration also plans to focus on efficient order management, in an effort to ensure timely delivery of services to the company’s diverse customer base.Announced a collaboration with Beyond Bank Australia, one of Australia’s largest customer-owned banks, to help transform the digital banking experience. The collaboration aims to enhance operational resilience, streamline processes and improve customer experience through the implementation of innovative technology solutions. Additionally, this collaboration seeks to modernize the bank’s IT infrastructure, establish a Security Operations Centre (SOC) and strengthen vendor assurance frameworks to help align with the Australian Prudential Regulation Authority (APRA) standards.

Select Analyst Ratings, Company Recognition and Announcements

Unveiled a new joint study in collaboration with Oxford Economics which shows how AI is expected to transform the consumer purchasing journey by 2030 and drive significant economic impact. The study, New Minds, New Markets, predicts that as income and purchasing power increases among 18 to 44-year-old AI enthusiasts, this demographic could drive an estimated $4.4 trillion of AI-influenced consumer spending in the U.S. by 2030.Cognizant became the first global IT service company to receive the accredited ISO/IEC 42001:2023 certification for its artificial intelligence management system. The certification recognizes Cognizant’s leadership in developing, assessing, and deploying AI systems in a safe, trustworthy, and ethical way.Named to Newsweek and Statista’s America’s Most Responsible Companies 2025. In its sixth year, this list acknowledges 600 U.S.-based companies for their commitment to making a positive global impact. Selected from the 2,000 largest publicly traded companies headquartered in the U.S., each winner received scores based on a range of criteria including corporate governance.Named to the Wall Street Journal’s 250 Best-Managed Companies of 2024. The Management Top 250 ranking, developed by the Drucker Institute, measures corporate management effectiveness by examining performance in five areas: customer satisfaction, employee engagement and development, innovation and financial strength.Recognized as an Employer of Choice by the American Opportunity Index which measures how well America’s largest companies drive economic mobility and positive career outcomes for their employees. Of the nine IT Services companies on the list of 100 top companies, Cognizant ranked first.Recognized by the Business Intelligence Group (BIG) for our Synapse program, a skilling program designed to train workers across the globe on new technology advancements, like AI, so they’re powered for change. This recognition was presented for addressing pressing challenges in workforce development amid technological disruption. Synapse was highlighted for its emphasis on inclusivity, global outreach, and measurable impact, and using innovation to address the global skills gap.Recognized as a Leader by Everest Group® in:Quality Engineering (QE) Services for AI Applications and Systems PEAK Matrix® Assessment, 2024Data & Analytics Services PEAK Matrix® Assessment, 2024AI and Generative AI Services PEAK Matrix® Assessment, 2024Healthcare Provider Digital Services PEAK Matrix® Assessment, 2024B2B Sales Services PEAK Matrix® Assessment, 2024Microsoft Azure Services PEAK Matrix® Assessment, 2024AWS Services PEAK Matrix® Assessment, 2024Market Leader in HFS Horizons:IOT Services, 2024Health Plans and Payers, 2024The Best Service Provider for Commercial Banking, 2024Salesforce Service Providers, 2024A Leader in IDC MarketScape:Worldwide Adobe Experience Cloud Professional Services 2024-2025 Vendor Assessment, doc # US51741024, December 2024Asia/Pacific Salesforce Implementation Services 2024-2025 Vendor Assessment, doc # AP51540024, November 2024Leadership in ISG Provider Lens™:Multi Public Cloud Services and Solutions, 2024Contact Center – Customer Experience Services, 2024Supply Chain Services, 2024Oracle Cloud and Technology Ecosystem, 2024Telecom Media and Entertainment, 2024Healthcare Digital Services, 2024Insurance Services, 2024 – US, EU, & ANZAdvanced Analytics and AI Services, 2024 – US & EuropeLeadership in Avasant’s:Generative AI ServicesIntelligent Automation Services, 2024Mexico Digital Services, 2024End-user Computing Services, 2024Hybrid Enterprise Cloud Services, 2024Intelligent ITOps Services, 2024Consumer Packaged Goods Digital Services, 2024Leadership in NelsonHall NEAT Reports:Quality Engineering Services, 2024Transforming Core Banking Services, 2025

Conference Call

Cognizant will host a conference call on February 5, 2025, at 5:00 p.m. (Eastern) to discuss the Company’s fourth quarter 2024 results. To listen to the conference call, please dial (877) 810-9510 (domestic) or +1 (201) 493-6778 (international) and provide the following conference passcode: “Cognizant Call.”

The conference call will also be available live on the Investor Relations section of the Cognizant website at http://investors.cognizant.com. An earnings supplement will also be available on the Cognizant website at the time of the conference call. For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or +1 (201) 612-7415 (internationally) and enter 13750333 beginning two hours after the end of the call until 11:59 p.m. (Eastern) on Wednesday, February 19, 2025. The replay will also be available at Cognizant’s website www.cognizant.com for 60 days following the call.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we’re improving everyday life. See how at www.cognizant.com or @cognizant.

Forward-Looking Statements
This press release includes statements that may 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, investment in and growth of our business, the pace and magnitude of change and client needs related to generative AI, 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 the Belcan acquisition 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 hereof. 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, risks related to our NextGen program and the ultimate benefits of such program, legal, reputational and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration, trade and taxes, 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.

About Non-GAAP Financial Measures and Performance Metrics

Non-GAAP Financial Measures
To supplement our financial results presented in accordance with GAAP, this press release includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Operating Margin, Adjusted Diluted EPS, free cash flow, net cash and constant currency revenue growth. 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 calculated 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 in 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 NextGen charges. Our non-GAAP financial measure Adjusted Diluted EPS excludes unusual items, such as NextGen charges, net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments. The income tax impact of each item excluded from Adjusted Diluted EPS is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Free cash flow is defined as cash flows from operating activities net of purchases of property and equipment. Net cash is defined as cash and cash equivalents and short-term investments less short-term and long-term debt. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period’s foreign currency exchange rates measured against the comparative period’s reported revenues.

Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced transparency 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 or 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 twelve 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 volumes 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. Large deals are defined as deals with a total contract value of $100 million or greater.

Investor Relations Contact:

Media Contact:

Tyler Scott

Jeff DeMarrais

VP, Investor Relations

VP, Corporate Communications

 +1 551-220-8246

 +1 475-223-2298

Tyler.Scott@cognizant.com

Jeff.DeMarrais@cognizant.com

– tables to follow –

 

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 (in millions, except per share data)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2024

2023

2024

2023

 Revenues

$     5,082

$     4,758

$  19,736

$   19,353

 Operating expenses:

Cost of revenues (exclusive of depreciation and amortization expense shown separately below)

3,297

3,081

12,958

12,664

 Selling, general and administrative expenses

844

786

3,223

3,252

 Restructuring charges

49

40

134

229

 Depreciation and amortization expense

141

127

529

519

 Income from operations

751

724

2,892

2,689

 Other income (expense), net:

 Interest income

28

34

119

126

 Interest expense

(19)

(11)

(54)

(41)

 Foreign currency exchange gains (losses), net

(18)

(1)

(19)

2

 Other, net

(2)

3

—

11

 Total other income (expense), net

(11)

25

46

98

 Income before provision for income taxes

740

749

2,938

2,787

 Provision for income taxes

(199)

(195)

(713)

(668)

 Income (loss) from equity method investment

5

4

15

7

Net income

$        546

$        558

$     2,240

$     2,126

 Basic earnings per share

$       1.10

$       1.12

$       4.52

$       4.21

 Diluted earnings per share

$       1.10

$       1.11

$       4.51

$       4.21

Weighted average number of common shares outstanding – Basic

495

500

496

505

Dilutive effect of shares issuable under stock-based compensation plans

1

1

1

—

Weighted average number of common shares outstanding – Diluted

496

501

497

505

 

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

 

(in millions, except par values)

December 31,
2024

December 31,
2023

Assets

Current assets:

Cash and cash equivalents

$          2,231

$          2,621

Short-term investments

12

14

Trade accounts receivable, net

4,059

3,849

Other current assets

1,202

1,022

Total current assets

7,504

7,506

Property and equipment, net

994

1,048

Operating lease assets, net

552

611

Goodwill

6,953

6,085

Intangible assets, net

1,599

1,149

Deferred income tax assets, net

1,248

993

Long-term investments

90

435

Other noncurrent assets

1,026

656

Total assets

$       19,966

$       18,483

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$             340

$             337

Deferred revenue

450

385

Short-term debt

33

33

Operating lease liabilities

152

153

Accrued expenses and other current liabilities

2,610

2,425

Total current liabilities

3,585

3,333

Deferred revenue, noncurrent

30

42

Operating lease liabilities, noncurrent

420

523

Deferred income tax liabilities, net

154

226

Long-term debt

875

606

Long-term income taxes payable

—

157

Other noncurrent liabilities

494

369

Total liabilities

5,558

5,256

Stockholders’ equity:

Preferred stock, $0.10 par value, 15 shares authorized, none issued

—

—

Class A common stock, $0.01 par value, 1,000 shares authorized, 495 and 498 shares issued

and outstanding as of December 31, 2024 and 2023, respectively

5

5

Additional paid-in capital

13

15

Retained earnings

14,686

13,301

Accumulated other comprehensive income (loss)

(296)

(94)

Total stockholders’ equity

14,408

13,227

Total liabilities and stockholders’ equity

$       19,966

$       18,483

 

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

Reconciliations of Non-GAAP Financial Measures

(Unaudited)

 

 (dollars in millions, except per share amounts)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

Guidance

2024

2023

2024

2023

Full Year 2025 (1)

GAAP income from operations

$    751

$    724

$ 2,892

$ 2,689

NextGen charges(a)

49

40

134

229

Adjusted Income From Operations

$    800

$    764

$ 3,026

$ 2,918

GAAP operating margin

14.8 %

15.2 %

14.7 %

13.9 %

NextGen charges

0.9

0.9

0.6

1.2

— %

Adjusted Operating Margin

15.7 %

16.1 %

15.3 %

15.1 %

15.5% – 15.7%

GAAP diluted earnings per share

$   1.10

$   1.11

$   4.51

$   4.21

Effect of NextGen charges, pre-tax

0.10

0.08

0.27

0.45

$—

Non-operating foreign currency exchange (gains) losses, pre-tax(b)

0.04

—

0.04

—

(b)

Tax effect of above adjustments(c)

(0.03)

(0.01)

(0.07)

(0.11)

(b)

Adjusted Diluted Earnings Per Share

$   1.21

$   1.18

$   4.75

$   4.55

$4.90 – $5.06

(1)   A full reconciliation of Adjusted Operating Margin and Adjusted Diluted Earnings Per Share 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, net non-operating foreign currency exchange gains or losses and the tax effects of these adjustments, and such adjustments may be significant.

Notes:

(a)  NextGen charges include:

Three Months Ended
December 31,

Twelve months ended
December 31,

(in millions)

2024

2023

2024

2023

Employee separation costs

$              30

$              22

$              85

$            115

Facility exit costs

7

16

36

108

Third party and other costs

12

2

13

6

Total NextGen charges

$              49

$              40

$            134

$            229

The costs related to the NextGen program are reported in “Restructuring charges” in our unaudited consolidated statements of operations. The program concluded on December 31, 2024.

(b)

Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in “Foreign currency exchange gains (losses), net” in our unaudited consolidated statements of operations. Non-operating foreign currency exchange gains and losses are subject to high variability and low visibility and therefore cannot be provided on a forward-looking basis without unreasonable efforts.

(c)

Presented below are the tax impacts of our non-GAAP adjustment to pre-tax income for the: 

(in millions)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2024

2023

2024

2023

Non-GAAP income tax benefit (expense) related to:

NextGen charges

$              13

$              10

$              34

$              59

Foreign currency exchange gains and losses

(1)

(4)

(4)

(6)

The effective tax rate related to non-operating foreign currency exchange gains and losses varies depending on the jurisdictions in which such income and expenses are generated and the statutory rates applicable in those jurisdictions. As such, the income tax effect of non-operating foreign currency exchange gains and losses shown in the above table may not appear proportionate to the net pre-tax foreign currency exchange gains and losses reported in our unaudited consolidated statements of operations.

 

Reconciliations of Net Cash

(Unaudited)

 

(in millions)

December 31, 2024

December 31, 2023

Cash and unrestricted cash equivalents

$                 2,231

$                 2,621

Short-term investments

12

14

Less:

Short-term debt

33

33

Long-term debt

875

606

Net cash

$                 1,335

$                 1,996

The above tables serve to reconcile the Non-GAAP financial measures to the most directly comparable GAAP measures. Refer to the “About Non-GAAP Financial Measures and Performance Metrics” section of our press release for further information on the use of these Non-GAAP measures.

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

Revenue by Business Segment and Geography

(Unaudited)

 

 (dollars in millions)

Three Months Ended December 31, 2024

Year over Year

$

 % of total

 % Change

Constant
Currency
% Change (a)

Revenues by Segment:

Health Sciences

$         1,541

30.3 %

10.4 %

10.4 %

Financial Services

1,435

28.2 %

2.9 %

2.8 %

Products and Resources (b)

1,295

25.5 %

11.3 %

11.3 %

Communications, Media and Technology

811

16.0 %

0.9 %

0.4 %

Total Revenues (b)

$         5,082

6.8 %

6.7 %

Revenues by Geography:

North America (b)

$         3,822

75.2 %

8.3 %

8.4 %

United Kingdom

445

8.8 %

(0.7) %

(3.1) %

Continental Europe

494

9.7 %

5.1 %

5.6 %

Europe – Total

939

18.5 %

2.3 %

1.3 %

Rest of World

321

6.3 %

3.5 %

3.9 %

Total Revenues (b)

$         5,082

6.8 %

6.7 %

Twelve Months Ended December 31, 2024

Year over Year

$

 % of total

 % Change

Constant
Currency
% Change (a)

Revenues by Segment:

Health Sciences

$         5,932

30.1 %

4.5 %

4.5 %

Financial Services

5,753

29.1 %

(1.0) %

(1.1) %

Products and Resources (c)

4,782

24.2 %

3.3 %

3.2 %

Communications, Media and Technology

3,269

16.6 %

0.8 %

0.5 %

Total Revenues (c)

$       19,736

2.0 %

1.9 %

Revenues by Geography:

North America (c)

$       14,698

74.5 %

3.0 %

3.1 %

United Kingdom

1,827

9.2 %

(3.1) %

(5.1) %

Continental Europe

1,932

9.8 %

1.2 %

0.9 %

Europe – Total

3,759

19.0 %

(0.9) %

(2.1) %

Rest of World

1,279

6.5 %

(1.3) %

— %

Total Revenues (c)

$       19,736

2.0 %

1.9 %

Notes:

(a)

Constant currency revenue growth is not a measure of financial performance prepared in accordance with GAAP. See “About Non-GAAP Financial Measures and Performance Metrics” section of our press release for further information.

(b)

For the three months ended December 31, 2024, recently completed acquisitions contributed approximately 450 basis points to overall revenue growth, including approximately 1,600 basis points of growth to our Products and Resources segment, primarily in North America.

(c)

For the year ended December 31, 2024, recently completed acquisitions contributed approximately 200 basis points to overall revenue growth, including approximately 600 basis points of growth to our Products and Resources segment, primarily in North America.

 

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

(in millions)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2024

2023

2024

2023

Cash flows from operating activities:

Net income

$        546

$        558

$    2,240

$    2,126

Adjustments for non-cash income and expenses

40

71

394

393

Changes in operating assets and liabilities, net of effects of businesses acquired

334

108

(510)

(189)

Net cash provided by operating activities

920

737

2,124

2,330

Cash flows from investing activities:

Purchases of property and equipment

(83)

(78)

(297)

(317)

Net maturities of investments

4

246

266

395

Payments for business combinations, net of cash acquired

—

—

(1,615)

(409)

Net cash (used in) provided by investing activities

(79)

168

(1,646)

(331)

Cash flows from financing activities:

Issuance of common stock under stock-based compensation plans

14

14

63

71

Repurchases of common stock

(154)

(313)

(605)

(1,064)

Net change in term loan borrowings and earnout obligations and and finance leases

(12)

(10)

(73)

(25)

Proceeds from borrowing under the revolving credit facility

—

—

600

—

Repayment of notes outstanding under the revolving credit facility

(300)

—

(300)

—

Dividends paid

(150)

(146)

(600)

(591)

Net cash (used in) financing activities

(602)

(455)

(915)

(1,609)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

(21)

63

(49)

33

Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

218

513

(486)

423

Cash, cash equivalents and restricted cash and cash equivalents, beginning of period

2,013

2,204

2,717

2,294

Cash, cash equivalents and restricted cash and cash equivalents, end of period

$    2,231

$    2,717

$    2,231

$    2,717

 

SUPPLEMENTAL CASH FLOW INFORMATION

(in millions)

Three Months Ended

December 31,

Stock Repurchases under Board of Directors’ authorized stock repurchase program:

2024

2023

Number of shares repurchased

1.8

4.2

Remaining authorized balance as of December 31, 2024

$       1,237

 

Reconciliation of Free Cash Flow Non-GAAP Financial Measure

(in millions)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2024

2023

2024

2023

Net cash provided by operating activities

$           920

$           737

$      2,124

$      2,330

Purchases of property and equipment

(83)

(78)

(297)

(317)

Free cash flow

$           837

$           659

$      1,827

$      2,013

 

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Truth-seeking: the Turning Point in Zunyi

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BEIJING, Oct. 18, 2026 /PRNewswire/ — An interview from China.org.cn with Wang Xiaohui and David Ferguson on the Long March:

 

Wang Xiaohui:

When you march toward your ideals but encounter repeated setbacks and failures, do you have the courage to pause, reflect on the path taken, and chart a new way forward?

David Ferguson:

If I continually encountered setbacks on the road to my ideals, I would stop and reflect seriously on whether my methods need adjusted or my direction needs corrected. This is a matter of being honest with oneself and honest about one’s shortcomings. Granted, this requires as much courage as setting out in the first place — because what you have to confront is not only the judgment of others, but your own ingrained reluctance to accept that you might have got it wrong.

Wang Xiaohui:

The waters of the Xiangjiang River ran crimson in the winter of 1934.

To cover the Red Army’s main force as they crossed the river, Chen Shuxiang, then Commander of the 34th Division of the Fifth Army Corps, led his troops to fight against vastly superior enemy forces until they ran out of ammunition and supplies. Severely wounded, Chen was captured alive. On the way to the enemy camp to be paraded for merit, Chen seized a moment of the enemy’s unawareness, tore his own intestines through his abdominal wound, and died a heroic death. He was only 29 years old.

The Battle of Xiangjiang River was the deadliest campaign for the Red Army since the start of the Long March. In less than two months, their troop strength plummeted from over 86,000 to just over 30,000.

At that critical moment, doubts and discontent among officers and soldiers with the military leadership peaked.

During the fights against the previous four Kuomintang (KMT) “encirclement” campaigns, the Red Army adopted Mao Zedong’s strategy of “luring the enemy in deep.” With flexible tactics in mobile warfare, the Red Army worked miracles of defeating superior enemies time and again. Yet, the tide turned completely during the KMT’s fifth “encirclement.”

At that time, the CPC was a branch of the Communist International (Comintern). After 1927, the Comintern instructed the CPC to adopt an urban-centered path in its revolution, for it was how Russia’s October Revolution had achieved victory. Affected by this directive, during the Fifth Counter-Campaign against “Encirclement and Suppression”, Bo Gu and Otto Braun, who held actual command of the Red Army, insisted on launching offensive operations to seize major cities.

Otto Braun also mechanically applied European conventional warfare tactics, forcing the Red Army into rigid positional and fortress battles. In the Battle of Guangchang, the poorly equipped Red Army fought head-on against enemy tanks and artillery on open terrain, resulting in more than 5,000 casualties, about one-fourth of all participating troops.

Successive military defeats forced the Red Army to launch a strategic shift. However, Bo Gu and Otto Braun insisted that everything be evacuated, including heavy equipment: printing presses, currency-making machines, and arms-manufacturing facilities… When crossing the Xiangjiang River, troops were slowed down by these cumbersome supplies, and numerous soldiers even laid down their lives for protecting these assets. Chen Shuxiang and his 34th Division wrote the gravest footnote to this bloody sacrifice.

By the banks of the Xiangjiang River, the spark of hope in the eyes of the Red Army soldiers was nearly quenched by the cold water. Could the rigid foreign doctrines truly guide the Red Army and China’s revolution? What path lay ahead?

History often unfolds in paradoxes: when all hope seems lost, a historical turning point is quietly emerging.

After the Battle of Xiangjiang River, Mao firmly opposed the original plan drafted by Bo Gu and Otto Braun to march towards Hunan. Instead, he proposed to advance to Guizhou where enemy defenses were weak. There, the Red Army broke through the natural barrier of the Wujiang River, and captured Zunyi. On Jan. 15, 1935, the CPC Central Committee convened an enlarged Political Bureau meeting in an old mansion, later known to the world as the Zunyi Conference.

Inside the modest living room on the second floor, a charcoal brazier expelled the winter chill. The CPC leadership sat around a long table to review why the Red Army had fallen into passive positions since 1933. Bo Gu attributed the defeats solely to the enemy’s overwhelming strength, while other leading officials like Zhou Enlai and Zhang Wentian pinpointed flawed military command as the fundamental cause.

Mao Zedong also made a pivotal speech.

As a revolutionary forged in rural base-area practice, Mao always sought truth from real combat experience. Citing victories from the previous four counter-“encirclement” campaigns, he rebutted Bo Gu’s opinions and criticized the flawed strategies of passive defense and abandoning mobile warfare tactics. In plain, incisive language, he pointed out that “the soldiers also needed to march, eat and sleep,” and that Braun’s rigid commands were completely divorced from the realities of China’s revolutionary warfare. 

Throughout the whole meeting, Bo Gu remained dejected; Braun sat near the door and lit one cigarette after another. Never had these “true Bolsheviks” faced such rigorous criticism before.

The intensive confrontation lasted three days. In the end, Mao Zedong was elected to the leadership of the Red Army and the CPC Central Committee, putting an end to the wrong guidance. This marked a life-and-death turning point in the history of the Communist Party of China.

The Zunyi Conference freed the CPC from the Comintern’s intervention, enabling the Party to independently master the destiny of China’s revolution. From then on, the Red Army turned peril into safety, and China’s revolution emerged from despair toward new life.

David Ferguson:

When faced with major setbacks, the Communist Party of China was not crushed; instead, it demonstrated the courage to confront and correct its own mistakes, thereby turning adversity into opportunity. For any ruling party, this kind of courage is exceptionally rare.

Throughout history, guided by the principle of seeking truth from facts, the Party has always corrected errors, updated systems and adjusted course. By doing so, it has guaranteed social progress. This is precisely the secret to success that has made the Party resilient and invincible.

Wang Xiaohui:

No grand undertaking advances without setbacks. Faced with obstacles and defeats, the CPC demonstrated extraordinary courage and wisdom. They sought truth from facts, corrected wrong courses, and led the revolution towards triumph.

The Zunyi Conference Spirit, embodied in firm conviction, adherence to truth, independence and self-reliance, solidarity and unity, was forged amid blood and fire. It has shaped the unique spiritual character of the CPC. In the years that followed, these timeless values continued to evolve and sustain the Party in the face of trials and challenges, endowing it with enduring vitality.

China Mosaic 
http://www.china.org.cn/video/node_7230027.htm

Faith: The Spark Born by the Yudu Riverside
http://www.china.org.cn/2026-10/17/content_118737624.shtml

 

 

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SOURCE China.org.cn

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Truth-seeking: the Turning Point in Zunyi

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BEIJING, Oct. 18, 2026 /PRNewswire/ — An interview from China.org.cn with Wang Xiaohui and David Ferguson on the Long March:

 

Wang Xiaohui:

When you march toward your ideals but encounter repeated setbacks and failures, do you have the courage to pause, reflect on the path taken, and chart a new way forward?

David Ferguson:

If I continually encountered setbacks on the road to my ideals, I would stop and reflect seriously on whether my methods need adjusted or my direction needs corrected. This is a matter of being honest with oneself and honest about one’s shortcomings. Granted, this requires as much courage as setting out in the first place — because what you have to confront is not only the judgment of others, but your own ingrained reluctance to accept that you might have got it wrong.

Wang Xiaohui:

The waters of the Xiangjiang River ran crimson in the winter of 1934.

To cover the Red Army’s main force as they crossed the river, Chen Shuxiang, then Commander of the 34th Division of the Fifth Army Corps, led his troops to fight against vastly superior enemy forces until they ran out of ammunition and supplies. Severely wounded, Chen was captured alive. On the way to the enemy camp to be paraded for merit, Chen seized a moment of the enemy’s unawareness, tore his own intestines through his abdominal wound, and died a heroic death. He was only 29 years old.

The Battle of Xiangjiang River was the deadliest campaign for the Red Army since the start of the Long March. In less than two months, their troop strength plummeted from over 86,000 to just over 30,000.

At that critical moment, doubts and discontent among officers and soldiers with the military leadership peaked.

During the fights against the previous four Kuomintang (KMT) “encirclement” campaigns, the Red Army adopted Mao Zedong’s strategy of “luring the enemy in deep.” With flexible tactics in mobile warfare, the Red Army worked miracles of defeating superior enemies time and again. Yet, the tide turned completely during the KMT’s fifth “encirclement.”

At that time, the CPC was a branch of the Communist International (Comintern). After 1927, the Comintern instructed the CPC to adopt an urban-centered path in its revolution, for it was how Russia’s October Revolution had achieved victory. Affected by this directive, during the Fifth Counter-Campaign against “Encirclement and Suppression”, Bo Gu and Otto Braun, who held actual command of the Red Army, insisted on launching offensive operations to seize major cities.

Otto Braun also mechanically applied European conventional warfare tactics, forcing the Red Army into rigid positional and fortress battles. In the Battle of Guangchang, the poorly equipped Red Army fought head-on against enemy tanks and artillery on open terrain, resulting in more than 5,000 casualties, about one-fourth of all participating troops.

Successive military defeats forced the Red Army to launch a strategic shift. However, Bo Gu and Otto Braun insisted that everything be evacuated, including heavy equipment: printing presses, currency-making machines, and arms-manufacturing facilities… When crossing the Xiangjiang River, troops were slowed down by these cumbersome supplies, and numerous soldiers even laid down their lives for protecting these assets. Chen Shuxiang and his 34th Division wrote the gravest footnote to this bloody sacrifice.

By the banks of the Xiangjiang River, the spark of hope in the eyes of the Red Army soldiers was nearly quenched by the cold water. Could the rigid foreign doctrines truly guide the Red Army and China’s revolution? What path lay ahead?

History often unfolds in paradoxes: when all hope seems lost, a historical turning point is quietly emerging.

After the Battle of Xiangjiang River, Mao firmly opposed the original plan drafted by Bo Gu and Otto Braun to march towards Hunan. Instead, he proposed to advance to Guizhou where enemy defenses were weak. There, the Red Army broke through the natural barrier of the Wujiang River, and captured Zunyi. On Jan. 15, 1935, the CPC Central Committee convened an enlarged Political Bureau meeting in an old mansion, later known to the world as the Zunyi Conference.

Inside the modest living room on the second floor, a charcoal brazier expelled the winter chill. The CPC leadership sat around a long table to review why the Red Army had fallen into passive positions since 1933. Bo Gu attributed the defeats solely to the enemy’s overwhelming strength, while other leading officials like Zhou Enlai and Zhang Wentian pinpointed flawed military command as the fundamental cause.

Mao Zedong also made a pivotal speech.

As a revolutionary forged in rural base-area practice, Mao always sought truth from real combat experience. Citing victories from the previous four counter-“encirclement” campaigns, he rebutted Bo Gu’s opinions and criticized the flawed strategies of passive defense and abandoning mobile warfare tactics. In plain, incisive language, he pointed out that “the soldiers also needed to march, eat and sleep,” and that Braun’s rigid commands were completely divorced from the realities of China’s revolutionary warfare. 

Throughout the whole meeting, Bo Gu remained dejected; Braun sat near the door and lit one cigarette after another. Never had these “true Bolsheviks” faced such rigorous criticism before.

The intensive confrontation lasted three days. In the end, Mao Zedong was elected to the leadership of the Red Army and the CPC Central Committee, putting an end to the wrong guidance. This marked a life-and-death turning point in the history of the Communist Party of China.

The Zunyi Conference freed the CPC from the Comintern’s intervention, enabling the Party to independently master the destiny of China’s revolution. From then on, the Red Army turned peril into safety, and China’s revolution emerged from despair toward new life.

David Ferguson:

When faced with major setbacks, the Communist Party of China was not crushed; instead, it demonstrated the courage to confront and correct its own mistakes, thereby turning adversity into opportunity. For any ruling party, this kind of courage is exceptionally rare.

Throughout history, guided by the principle of seeking truth from facts, the Party has always corrected errors, updated systems and adjusted course. By doing so, it has guaranteed social progress. This is precisely the secret to success that has made the Party resilient and invincible.

Wang Xiaohui:

No grand undertaking advances without setbacks. Faced with obstacles and defeats, the CPC demonstrated extraordinary courage and wisdom. They sought truth from facts, corrected wrong courses, and led the revolution towards triumph.

The Zunyi Conference Spirit, embodied in firm conviction, adherence to truth, independence and self-reliance, solidarity and unity, was forged amid blood and fire. It has shaped the unique spiritual character of the CPC. In the years that followed, these timeless values continued to evolve and sustain the Party in the face of trials and challenges, endowing it with enduring vitality.

China Mosaic 
http://www.china.org.cn/video/node_7230027.htm

Faith: The Spark Born by the Yudu Riverside
http://www.china.org.cn/2026-10/17/content_118737624.shtml

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/truth-seeking-the-turning-point-in-zunyi-302912139.html

SOURCE China.org.cn

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GMIF2026: AI Inference Powers the “Token Factory” and Drives System-Level Rethinking of Memory & Storage

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SHENZHEN, China, Oct. 18, 2026 /PRNewswire/ — The 5th GMIF Innovation Summit (Global Memory Innovation Forum 2026, GMIF2026) recently concluded at the Renaissance Shenzhen Bay Hotel. Co-hosted by the Shenzhen Memory Industry Association (SMIA) and the School of Integrated Circuits at Peking University, the summit was themed “The Future Built on AI Memory and Storage.” Now in its fifth edition, GMIF has grown from a regional industry gathering into a benchmark for the global semiconductor memory ecosystem, with diversified programs including keynote sessions, an investment forum, product exhibitions, a global livestream, and a golf friendship match, all centered on the value of memory and storage in the token economy and the AI inference era.

In the opening remarks by Rixin Sun, President of Shenzhen Memory Industry Association (SMIA), GMIF’s growth over five consecutive editions was traced from its early days to today. As a platform for global exchange, GMIF is built around the memory value chain, linking wafer IDMs and players in controllers, modules, packaging and testing, equipment and materials, and end applications to promote technical exchange, supply-demand matching, and ecosystem cooperation.

President Sun noted that as AI evolves from generative to agentic, inference efficiency, data scheduling, and system coordination have become shared priorities. Collaboration across the value chain is no longer a traditional supply-demand relationship, but a deeper partnership built around workload requirements, joint product definition, and scenario validation. Looking ahead, GMIF will pursue a more specialized and differentiated format, connecting memory companies with AI compute and end-application players worldwide.

Capital Meets Technology: Memory & Storage Moves to the Center of AI Infrastructure

As AI shifts from model training to large-scale commercial inference, the token is becoming a new unit of value. Inference demands low latency, high concurrency, and sustained throughput, which places memory and storage bandwidth, capacity, and energy efficiency among the variables that shape overall system efficiency and cost.

Daniel Yen of Morgan Stanley projected that global data center capital expenditure will stay strong in the coming years, with more than half of cloud data center capex expected to go to memory & storage (excluding HBM) by 2027. Yen identified six innovation paths to overcome the “memory wall” challenge: process migration, design changes, advanced packaging, memory peripherals, PIM/CIM, and new materials.

Prof. Yimao Cai, Dean of the School of Integrated Circuits at Peking University, pointed out that HBM remains central to high-end AI compute, but yield, cost, and thermal constraints limit broader adoption. NAND-based high-bandwidth technologies such as HBF have become a major research focus because of their cost advantage, and hybrid multi-media architectures could balance performance, capacity, and cost for deploying models with hundreds of billions of parameters.

Kevin Yoon, CVP & CTO of Samsung Memory China at Samsung Electronics, described how agents are generating massive KV cache demand and driving rapid iteration of tiered storage, citing Samsung’s work on Z-NAND, PCIe Gen6 SSDs, and ultra-high-capacity data center SSDs. Maya Zhang, Senior Director of Product Marketing from Sandisk, called this the first year of the “inference boom.” As inference reaches commercial scale, AI data centers are shifting from cost centers to value and capacity centers, and the evaluation framework is moving from TCO to TVO. NAND is becoming a strategic core component of AI, and the SSD is becoming a “token battery” that greatly improves the economics of the industry through token reuse.

Solidigm and Arm focused on the evolution of system-level design. Benny Ni, GAR Sales VP at Solidigm, noted high-capacity QLC SSDs are being adopted faster, and that memory offloading has moved from an alternative to a core design paradigm for data centers, while liquid cooling has become a prerequisite for unlocking high-end storage performance. John Xavier Lionel, Head of Global Storage Business at Arm, shared competition in the AI era is shifting from simply chasing higher TOPS to building a more efficient system balance among compute, memory, storage, and data movement. Arm’s cloud-edge-device continuum framework balances power, capacity, bandwidth, latency, security, and cost constraints at each tier, so that “the right AI workload runs in the right place.”

Moving from the cloud to the edge, Stanley Huang, AVP of Silicon Motion, stressed that devices are the ultimate carrier of AI experiences and that intelligent storage directly determines real-world device performance. Its PerformaShape technology allocates resources flexibly across different agents and greatly improves read/write consistency.

Sam Sun, Chairman of BIWIN, explained that large-scale AI inference is extending memory demand from data centers to the edge and endpoints, where differing needs in capacity, performance, power, size, and reliability are pushing storage from general-purpose specifications toward deep matching with specific scenarios and platforms. Drawing on full-stack capabilities from media selection and controller and firmware development to advanced packaging, testing, and volume delivery, BIWIN works closely with customers, platforms, and chip makers to tailor products to each use case, shortening development and validation cycles and improving system space, energy efficiency, and performance.

Token Factories Move Enterprise AI from Pilot to Production

As the token becomes the core unit of value, producing tokens efficiently and at low cost has become a shared challenge for enterprise AI adoption worldwide, and the “token factory” is emerging as a new industry paradigm. Tao Zhou, General Manager of the Server Division of Lenovo ISG China, said 80% of enterprises have deployed at least one type of agent, yet fewer than 40% of projects can scale and deliver positive ROI. Lenovo has built a full-stack “token factory” paradigm spanning data governance, compute optimization, and security management to address this.

A solid token factory depends on underlying storage media and architecture. Numbers Law’s PMD (Parallel Magnetic Drive) technology and NEXWISE‘s “KuberCloud” token factory solution contributed to full-stack capability from hardware to compute scheduling and model operations. Infplane, Maxio, and Genstoraige lowered the deployment threshold for large on-device models through AI SSD tiered offloading and memory expansion.

Real-world applications are also deepening. SYNCORE has achieved vehicle-cloud embodied intelligence across the whole vehicle. Dify, with its private agent architecture, and Paratera, with its MaaS compute service platform, are moving AI from basic compute supply toward deeper industry intelligence services, accelerating the industrialization of AI.

40 Companies Showcase the Core of the AI Memory & Storage Chain

The concurrent exhibition brought together 40 companies across the full value chain, from memory chips and controllers to compute servers, AIDC services, packaging and testing equipment, and system applications, presenting the latest advances in AI memory and storage from around the world.

Memory IDMs and controller makers led with new products. SanDisk featured its iNAND AT EU752 automotive UFS 4.1, SN861 enterprise NVMe SSD, and BiCS8 QLC NAND. Silicon Motion introduced the SM8466 PCIe Gen6 16-channel controller and the SM2524XT controller for edge SSDs. Maxio, YEESTOR, and other Chinese controller makers showed flagship PCIe Gen4/Gen5 and UFS controllers with enhanced LDPC, a sign that China’s controller portfolio is taking shape and benchmarking itself against leading international standards.

Compute and token factory solutions were another highlight. Lenovo exhibited its WenTian series of AI training-and-inference integrated servers. NEXWISE presented its full-stack token factory hardware and software, with heterogeneous compute management and token-based billing. Paratera showed its intelligent compute cloud and supercomputing cloud services, and Numbers Law demonstrated its PMD (Parallel Magnetic Drive) technology, aimed at sharply raising HDD IOPS and throughput. Infplane, Genstoraige, and Quanxing introduced KV cache offload and memory-fusion AI SSD solutions that use storage to share the compute load and significantly cut deployment costs.

Module makers and full-scenario solution providers brought a wide range of products. BIWIN exhibited enterprise SSDs, CXL products, wide-temperature industrial storage, and embedded products spanning AI cloud, edge, and device. KingSpec, POWEV, Topdisk, Barycn, Jielong Storage, HIKSEMI, and others presented industrial-grade, automotive-grade, server, and embedded product families, demonstrating strong volume production and reliable delivery.

Equipment, testing, and materials suppliers rounded out the floor. Attach Point, MICROVIEW, and Maxwell Technologies showed die attach and bonding equipment for 2.5D/3D advanced packaging. OKN Technology, Acroview Technology, Hongjingwei, and Tytantest introduced test and burn-in systems covering SSD, DRAM, and NAND that can accurately reproduce high-load AI I/O scenarios. Hemei Jingyi and Silergy brought storage IC package substrates and dedicated power management ICs. From advanced packaging equipment to test validation to core components, this supporting ecosystem lays the manufacturing foundation for volume production of AI memory and storage and for Chinese suppliers expanding overseas.

GMIF2026 Annual Awards Unveiled: Global Memory & Storage Leaders Build an Open, Collaborative Ecosystem

To recognize companies that have made outstanding contributions to the memory and storage value chain, the summit established the GMIF2026 Annual Awards, which cover memory, compute, packaging and testing equipment, test systems, and end applications across AI infrastructure, and were judged on technological innovation, industry contribution, market service, and real-world results.

Honorees, including Samsung Semiconductor, SanDisk, Solidigm, CXMT, Arm, Lenovo, Dify, Silicon Motion, Infplane, Genstoraige, Numbers Law, Paratera, SYNCORE, NEXWISE, Maxio Technology, BIWIN, Topdisk, KingSpec, POWEV, Quanxing Technology, OKN Technology, Attach Point, COMIX, Barycn, LKAUTO, Maxwell Technologies, Hemei Jingyi, Silergy, Heyan Technology, ExTripod Electronics, UNIMOS, GBAT, and Tytantest, were recognized for standout achievements in technology breakthroughs, product deployment, ecosystem building, and the industry chain.

Global Livestream and Golf Friendship Match Extend the Boundaries of Industry Cooperation

To join the global ecosystem and expand international cooperation, the summit featured a special Global Livestream by Memory Brands on LinkedIn, Facebook, and YouTube. Eight brands presented online: BIWIN, Silicon Motion, Quanxing Technology, OKN Technology, KingSpec, Maxwell Technologies, ExTripod Electronics, and Silergy. They gave overseas audiences a direct look at China’s latest advances in memory chips, advanced packaging, test systems, and other core AI infrastructure components, connecting technology standards, supply chain resources, and market demand across regions.

The momentum carried into the next day. The GMIF2026 “BIWIN Cup” golf friendship match, exclusively sponsored by BIWIN, brought senior executives from across the global memory value chain to the course. After a day of intensive discussion at the main forum, the setting was more relaxed, but the conversations among technology, capital, and markets carried on, helping speed practical cooperation across borders and sectors.

Conclusion

Across the GMIF program, one message stood out: global AI competition is moving beyond the “single-point era” of peak GPU performance into a “system-level era” that integrates storage, compute, networking, and software. In the token economy, memory and storage is shedding its auxiliary role and becoming the strategic foundation of AI inference.

This edition of GMIF brought together capital outlook, frontier technology, product innovation, real-world practice, and ecosystem collaboration, and, with the awards, livestream, and networking events, carried the conversation from ideas to product showcases, overseas exposure, and business deals. Going forward, GMIF will stay focused on the industry’s frontier issues and connect key players across the global memory value chain, promoting joint standards, technology development, and market expansion to open a new chapter for the AI memory and storage industry.

About GMIF

Global Memory Innovation Forum (GMIF) is a premier annual gathering that connects the global memory and storage community. Featuring diverse activities including keynote speeches, roundtable dialogues, supply-demand match-making, product showcases, industry rankings, awards programs, and global livestreaming, GMIF brings together key enterprises across the memory and storage chain, technical experts, terminal companies and investment institutions to exchange insights, build partnerships, and create business opportunities. Learn more about GMIF, please visit https://www.gmif.com.cn/. Follow us on LinkedIn, YouTube and Facebook.

Media Contact:
Carina Gu, wenjing.gu@gmif.com.cn

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SOURCE Shenzhen Memory Industry Association (SMIA)

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