Cognizant Technology Solutions
Services-Computer Programming Services
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries.
It is a $26.6B technology company. Revenue grew 5.6% over the last year, it keeps 10¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 12.0× earnings — near the lowest of its own history.
- Website
- cognizant.com
- Location
- Teaneck, NJ
- Employees
- 356 700
- Sector
- Technology
- Founded
- 1994
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, health, quality and moat.
Valuation100
- P/E vs own history8th pct · 25/25
- FCF yield9.8% · 25/25
- P/S1.2x · 25/25
- EV/EBITDA6.8x · 25/25
Growth52
- Revenue CAGR3.3% · 6/25
- Net income CAGR1.1% · 6/25
- EPS CAGR ~5Y12.1% · 20/25
- Fwd implied growth26.3% · 20/25
Profitability72
- ROIC16.3% · 20/25
- ROE14.9% · 12/25
- Net margin10.3% · 20/25
- Operating margin15.9% · 20/25
Health100
- Altman Z4.64 · 25/25
- Current ratio2.18 · 25/25
- Interest coverage100.8x · 25/25
- Net cash / debtNet cash · 25/25
Quality92
- Piotroski F7/9 · 22/25
- Beneish M-2.43 · 20/25
- FCF conversion117% · 25/25
- Margin stabilityσ 2.1% · 25/25
Moat81
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin34.6% · 13/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 8.4% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2024MilestoneCognizant's largest employee bases were in Chennai and Hyderabad, each with more than 50,000 employees,…
- FY2022FinancialBest year on record$2.29B net income
- 2022AcquisitionCognizant sold its acquisition Oy Samlink to Kyndryl and Mustache to DJE Holdings
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $10B$13.5B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2014AcquisitionCognizant acquired healthcare IT services provider TriZetto Corp for $2.7 billion
- 2003AcquisitionIMS Health sold its entire 56% stake in Cognizant, which instituted a poison pill provision to prevent…
- 1998IPOIMS Health partially spun off the company, conducting an initial public offering of the Cognizant stock
- 1997MilestoneThree months later, in 1997, DBSS renamed itself Cognizant Technology Solutions
- 1997AcquisitionDun & Bradstreet bought Satyam's 24% stake in DBSS for $3.4 million
- 1996MilestoneDun & Bradstreet spun off several of its subsidiaries, including Erisco, IMS International, Nielsen Media…
- 1994FoundedCognizant was established in 1994 in Chennai, India, as Dun & Bradstreet Satyam Software (DBSS), a 76:24 joint…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Net cash position after subtracting debt from cash
- Could repay net debt from ~0.4 years of free cash flow
- Interest covered 100.8× by operating earnings
- High returns on invested capital (ROIC 16.3%)
- Piotroski F-Score 7/9 — fundamentally strong checklist
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+5.6% YoY
- Profitable — makes more than it spends$2.22B TTM
- Profit growing — earnings are higher than last year+1.1% YoY
- Generates cash — cash left after running and investing$2.60B TTM
- Debt under control — could handle its obligationsmore cash than debt
- Established company — not a micro-cap — lower blow-up risk$26.6B market cap
- Not printing shares — share count not ballooning — you keep your slice-9.6% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distressAltman Z 4.6 — safe
- Pays a dividend — returns cash to shareholdersyield 2.32%
- Valuation not extreme — price not wildly above earningsP/E 12.0
Peer comparisonCognizant Technology Solutions vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| CTSH this company | $26.6B | 12.0 | +5.6% | 10.3% | Strong |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: CTSH vs NVDA · CTSH vs AAPL · CTSH vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/CTSH
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of CTSH on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $59.00 · market cap $26.6B.