NASDAQ: CTSH · IT Consulting & Other Services
Cognizant
Cognizant is an IT services company: consulting, technology, digital engineering, AI and operations outsourcing, delivered largely from India (256,900 of its roughly 351,600 employees). It serves four industry segments: Health Sciences, Financial Services, Products and Resources, and Communications, Media and Technology. 2025 revenue was $21.1 billion (+7.0%, of which Belcan added 2.6 points) and operating income $3.4 billion (16.1% margin). Net income stayed flat at $2.2 billion because of a one-time $390 million non-cash tax charge tied to the One Big Beautiful Bill Act (OBBBA). North America accounts for 75% of revenue.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Built on10-K FY2025 · filed 2026-02-1210-Q (quarter ended 2026-09-30) · filed 2026-10-29
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 4.9%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 16.1%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +6.0 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- -0.3x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.29x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 12.2x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.88
Higher than 24% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 41% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 59% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 16% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 34% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$65.29close on 2026-11-04
Market cap$31.27B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 12.2x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 2.1x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 7.6x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 8.3%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.9%
At FY2025 year-end: 18.2x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 2.6x
Book value at FY2025 year-end
At FY2025 year-end: 9.8x
EBITDA for FY2025
At FY2025 year-end: 6.5%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$5.42B → $5.66B (vs. a year earlier)↑ +4.6%$5.42B → $5.66B (vs. a year earlier)
- Operating margin16.0% → 15.4% (vs. a year earlier)↓ −0.6 pts16.0% → 15.4% (vs. a year earlier)
- Net income$274M → $627M (vs. a year earlier)↑ +128.8%$274M → $627M (vs. a year earlier)
- Diluted EPS$0.56 → $1.39 (vs. a year earlier)↑ +148.2%$0.56 → $1.39 (vs. a year earlier)
- Cash$1.04B → $1.52B (vs. previous quarter-end)↑ +46.0%$1.04B → $1.52B (vs. previous quarter-end)
- Long-term debt$1.53B → $1.55B (vs. previous quarter-end)↑ +1.6%$1.53B → $1.55B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 29, 2026.
Management outlook • Issued
Revised 2026 adjusted EPS guidance to $5.72–$5.79. Source sentence
2026 Adjusted Diluted EPS guidance revised to $5.72 to $5.79, year-over-year growth of 8% to 10%
Key changes
Q3 revenue $5.7B, up 4.6%. Source sentence
Revenue of $5.7 billion increased 4.6% year-over-year or 4.8% in constant currency 1
Operating margin 15.4%, down 60 basis points. Source sentence
Operating margin of 15.4% decreased 60 basis points year-over-year;
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- COGNIZANT TECHNOLOGY SOLUTIONS CORP
- Headquarters
- TEANECK, NJ
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: CTSH
- Industry
- IT Consulting & Other Services
- CIK
- 1058290
- Website
- https://www.cognizant.com/ ↗
Workforce (as of FY2025 year-end)
Employees
351,600
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 35–37 days after quarter end (Feb 4, 2026; Feb 5, 2025; Feb 6, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 29–37 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 29, 2026 (+29 days) | Oct 29, 2026 10-Q (+29 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 29, 2026 (+29 days) | Jul 29, 2026 10-Q (+29 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 29, 2026 (+29 days) | Apr 29, 2026 10-Q (+29 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 4, 2026 (+35 days) | Feb 12, 2026 10-K (+43 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Oct 29, 2025 10-Q (+29 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 30, 2025 (+30 days) | Jul 31, 2025 10-Q (+31 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 30, 2025 (+30 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 5, 2025 (+36 days) | Feb 12, 2025 10-K (+43 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 30, 2024 (+30 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 31, 2024 (+31 days) | Aug 1, 2024 10-Q (+32 days) |
| Q1 FY2024 | Mar 31, 2024 | May 1, 2024 (+31 days) | May 2, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 6, 2024 (+37 days) | Feb 14, 2024 10-K (+45 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Services
Consulting and technology services
Examples: AI, data, cloud, application modernization, digital engineering
Services
Outsourcing services
Examples: IT and business process operations
Health Sciences
TriZetto (now Cognizant Technology Software Group)
Examples: Healthcare software
Service lines per the FY2025 Form 10-K.
U.S. and worldwide share of flagship products/services
The filings reviewed give no market share figure for the company's products or services. It calls itself "one of the world's leading professional services companies" without a figure.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-09-30)
07
Recent strategic focusSite analysis
2025–2026 developments.
OBBBA tax charge
After the One Big Beautiful Bill Act repealed U.S. R&E capitalization, Cognizant recorded a one-time non-cash $390M tax expense in Q3 2025 (−$0.80 EPS).
Source: Form 10-K (FY2025) MD&A
Bigger buyback
In May 2026 the authorization was increased by $2B (about $3.45B remaining) and 2026 planned repurchases raised to $2B; Cognizant drew $1B on its revolver.
Source: 8-Ks filed 2026-05-18 and 2026-05-21
Q3 2026
Revenue rose 4.6% to $5.7B, with Financial Services up 12%; GAAP EPS $1.39 (+148%, against the Q3 2025 tax charge) and adjusted EPS $1.49 (+7.2%). 2026 guidance was revised to 4.0–4.4% constant-currency revenue growth and $5.72–5.79 adjusted EPS.
Source: Q3 2026 press release
New credit facilities
In October 2026 Cognizant entered a $550M term loan and a $1.85B revolver.
Source: 8-K filed 2026-10-06
Capex ÷ D&A (FY2025)
0.52x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$288M ÷ $550M = 0.52x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$4.48B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $398M in FY2020 to $288M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$21.11B
As reported in the 10-K
Revenue CAGR (5 years)
+4.9%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($21,108M ÷ $16,652M) ^ (1÷5) − 1 = 4.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
16.1%▲favorable
+3.4pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$3,389M ÷ $21,108M × 100 = 16.1%
ROE (FY2025)
15.2%▲favorable
6-year average: 16.4%
As reported in the 10-K
P/B (FY2025 end)
2.65x
formulafiscal year-end closing price ÷ book value per share
e.g.$83.00 ÷ $31.35 = 2.65x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
9.8x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($39,757M + $576M − $1,901M) ÷ ($3,389M + $550M) = 9.8x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +4.9% a year over 5 years (modest growth)
From $16.65B in FY2020 to $21.11B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 12.7% → 16.1%
How much operating profit is left per $100 of revenue. It moved +3.4 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▲
Equity ratio is 72.6% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 16.4% over 6 years (latest: 15.2%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Application development, modernization, AI, engineering
- Operations and IT outsourcing
06 · what it draws on
Key resources
- ~351,600 employees (256,900 in India)
02 · why customers buy
Value propositions
- Consulting, technology and AI services built on a deep understanding of clients' existing systems.
04 · how it keeps them
Customer relationships
- Outsourcing and platform service relationships with large enterprises.
03 · how it reaches them
Channels
- Its own client teams by industry, with a global delivery network.
01 · who it serves
Customer segments
- Large enterprises in healthcare, financial services, industrials, media and tech
09 · where money goes
Cost structure
FY2025, share of revenue ($21.11B)
- Cost of revenue66.3%
- Selling, general & administrative15.3%
- Other operating costs2.3%
Operating profit left: 16.1% of revenue. Depreciation & amortization (inside the costs above): $550M. Capital spending: $288M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Time-and-materials, fixed-price and transaction-based contracts
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Consulting and technology services plus outsourcing, delivered through a global delivery network.
01 what it draws on
Inputs & resources
- ~351,600 employees (256,900 in India)
02 what it does
Activities
- Application development, modernization, AI, engineering
- Operations and IT outsourcing
03 who it serves
Customers
- Large enterprises in healthcare, financial services, industrials, media and tech
04 how money comes in
How it earns
- Time-and-materials, fixed-price and transaction-based contracts
How the business makes money
- Trailing 12-month bookings were $28.7B at Q3 2026 (+4%).
- 2025 growth was led by Financial Services and Health Sciences large deals.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Cognizant faces government contracting rules and expanding data and export rules.
Government as customer
Government contracts
Work with government clients brings stricter regulatory requirements.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Trade & export rules
Export controls and sanctions
Authorities are applying laws on IP, cybersecurity, export controls and data localization.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Health Sciences
6,347 (30%)profit 1,233 · margin 19.4%
Financial Services
6,173 (29%)profit 1,029 · margin 16.7%
Products and Resources
5,285 (25%)profit 787 · margin 14.9%
Communications, Media and Technology
3,303 (16%)profit 436 · margin 13.2%
Source: Form 10-K (FY2025) — segment information note Profit is segment operating profit (including allocated corporate costs since 2025); $96M of costs were unallocated.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market ()
North America — 75% of revenue
Revenue by country / region ()
Unit: — bar length = revenue, (%) = share of total company revenue
North America
15,780 (75%)Continental Europe
2,090 (10%)United Kingdom
1,922 (9%)Rest of World
1,316 (6%)
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Revenue comes from client service contracts; growth in 2025 came partly from ramp-up of several large deals.
Bookings
Trailing 12 months $28.7B at September 30, 2026
Source: Q3 2026 press release
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Large enterprises across healthcare, financial services, products and resources, and communications/media/technology.
Named by the company
No customer is named as significant.
Suppliers
Subcontractors and technology partners.
Named by the company
No supplier is named.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names direct competitors.
Competitors named in the 10-K
IT services
- Accenturesite ↗
- Atossite ↗
- Capgeminisite ↗
- CGIsite ↗
- Deloittesite ↗
- DXC Technologysite ↗
- EPAM Systemssite ↗
- Genpactsite ↗
- HCLTechsite ↗
- IBMsite ↗
- Infosyssite ↗
- Tata Consultancy Servicessite ↗
- Wiprosite ↗
Deloitte Digital and IBM Consulting are the named units.
Peer group the company chose
2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
17 technology, software and professional services companies; VMware removed after its acquisition. (The proxy uses a separate top-tier industry group for some metrics.)
- Accenturesite ↗
- IBMsite ↗
- Salesforcesite ↗
- Hewlett Packard Enterprisesite ↗
- Marsh & McLennan Companiessite ↗
- Adobesite ↗
- Fiservsite ↗
- Automatic Data Processingsite ↗
- Leidossite ↗
- Omnicomsite ↗
- Aonsite ↗
- DXC Technologysite ↗
- Discover Financial Servicessite ↗
- eBaysite ↗
- FIS (Fidelity National Information Services)site ↗
- WTW (Willis Towers Watson)site ↗
- NetAppsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
M&A historySite analysisShow
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Cognizant makes regular acquisitions; Belcan (2024) was the largest recent one.
Cash spent on acquisitions, FY2020–FY2025: $4.48B
2024-08-26
Belcan
$1,195 million in cash, net of cash acquired
Global supplier of engineering R&D services for commercial aerospace, defense, space, marine and industrial verticals.
- Stated purpose (company)
- Not stated.
Source: Form 10-K (FY2025)
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
| Line item | FY2020In next year’s 10-K | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 16,652 | 18,507 | 19,428 | 19,353 | 19,736 | 21,108 |
| Operating income | 2,114 | 2,826 | 2,968 | 2,689 | 2,892 | 3,389 |
| Pretax income | 2,096 | 2,827 | 3,016 | 2,787 | 2,938 | 3,479 |
| Net income (attributable) | 1,392 | 2,137 | 2,290 | 2,126 | 2,240 | 2,230 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 11.1% | 5.0% | -0.4% | 2.0% | 7.0% |
| Operating margincalcoperating income ÷ revenue × 100 | 12.7% | 15.3% | 15.3% | 13.9% | 14.7% | 16.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 8.4% | 11.5% | 11.8% | 11.0% | 11.3% | 10.6% |
| Balance sheet ($M) | ||||||
| Total assets | 16,923 | 17,852 | 17,852 | 18,483 | 19,966 | 20,692 |
| Total equity | 10,836 | 11,991 | 12,309 | 13,227 | 14,408 | 15,015 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 701 | 664 | 646 | 639 | 908 | 576 |
| Equity ratio | 64.0% | 67.2% | 69.0% | 71.6% | 72.2% | 72.6% |
| ROE | 12.8% | 18.7% | 18.8% | 16.7% | 16.2% | 15.2% |
| Cash flow ($M) | ||||||
| Operating CF | 3,299 | 2,495 | 2,568 | 2,330 | 2,124 | 2,883 |
| Investing CF | -1,238 | -2,164 | -106 | -331 | -1,646 | -230 |
| Financing CF | -2,009 | -1,203 | -1,939 | -1,609 | -915 | -2,272 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,901 | 2,216 | 2,236 | 2,013 | 1,827 | 2,595 |
| Cash and equivalents | 2,680 | 1,792 | 2,191 | 2,621 | 2,231 | 1,901 |
| Per share & other | ||||||
| EPS ($) | 2.57 | 4.05 | 4.41 | 4.21 | 4.51 | 4.56 |
| BVPS ($) | 20.45 | 22.84 | 24.18 | 26.56 | 29.11 | 31.35 |
| Dividend per share ($) | 0.88 | 0.96 | 1.08 | 1.16 | 1.20 | 1.24 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 34.2% | 23.7% | 24.5% | 27.6% | 26.6% | 27.2% |
| P/E (x) | 31.9 | 21.9 | 13.0 | 17.9 | 17.1 | 18.2 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 15.5 | 13.4 | 7.8 | 11.0 | 10.7 | 9.8 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 4.01 | 3.88 | 2.36 | 2.84 | 2.64 | 2.65 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $5.66B+4.6% | $872M+0.7% | $627M+128.8% | $1.39 |
| 2026-06-30 | $5.48B+4.5% | $874M+7.0% | $636M-1.4% | $1.36 |
| 2026-03-31 | $5.41B+5.8% | $843M-1.2% | $662M-0.2% | $1.39 |
| 2025-12-31 † | $5.33B+4.9% | $853M+13.6% | $648M+18.7% | — |
| 2025-09-30 | $5.42B | $866M | $274M | $0.56 |
| 2025-06-30 | $5.25B | $817M | $645M | $1.31 |
| 2025-03-31 | $5.12B | $853M | $663M | $1.34 |
| 2024-12-31 † | $5.08B | $751M | $546M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
15.7%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$3,389M × (1 − 28.5%) ÷ $15,454M × 100 = 15.7%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
9.72%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $39.76B ÷ ($39.76B + $576M) = 98.6%
e.g.Debt weight: $576M ÷ ($39.76B + $576M) = 1.4%
e.g.WACC: 9.8% × 98.6% + 6.4% × (1 − 28.5%) × 1.4% = 9.72%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 8.0%–11.9% and ROIC − WACC runs +3.8 to +7.7 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 9.72% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.88 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.79%
- Cost of debt
- 6.42%
- Tax rate
- 28.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 99% : 1%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 9.72%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.88 (price-derived adjusted beta. Raw β 0.82, R² 0.12, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.823 + 0.33 = 0.881
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.88 × 5.5% = 9.8%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
1.0%
Perpetual FCF growth: g = r − FCF ÷ EV = 9.7% − 8.7%
Past FCF growth (FY2020–FY2025)
-2.2%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+4.9%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $2.6B (operating CF − capex); enterprise value $29.94B = market cap $31.27B (latest close, 2026-11-04) + debt $576M − cash and short-term investments $1.91B; r = WACC of 9.7% using this page’s default assumptions (β 0.88, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$29.83B
FCF $2.6B ÷ (9.7% − 1.0%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 7.7% | 8.7% | 9.7% | 10.7% | 11.7% |
|---|---|---|---|---|---|
| 0% | 1.13x | 1.00x | 0.89x | 0.81x | 0.74x |
| 2% | 1.52x | 1.29x | 1.13x | 1.00x | 0.89x |
| 4% | 2.34x | 1.84x | 1.52x | 1.29x | 1.13x |
| 6% | 5.10x | 3.21x | 2.34x | 1.84x | 1.52x |
| 8% | — | 12.38x | 5.10x | 3.21x | 2.34x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.33x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.2%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 97%
Most profit comes from core operations.
- ✓
Days sales outstanding: 68 → 73 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$2,883M ÷ $2,230M = 1.29x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$3,389M ÷ $3,479M × 100 = 97%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($4,059M + $4,439M) ÷ 2 ÷ $21,108M × 365 = 73 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 100%+
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- ≈0%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 6 of 416
- Beta (adjusted)
- 0.88
Reported total 113.0%
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 1% of covered companies have more
above 1 = swings more than the market
- 509.0M shares reported by 916 13F filers ÷ 450.4M shares outstanding on 2026-07-24. Option positions are excluded.
- The 13F total exceeds shares outstanding because some shares are reported twice — for example shares lent to short sellers and then bought by another manager, or holdings that overlapping managers both report.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed None (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-24)
20
Strengths & weaknessesSite analysis
Strengths
1. Scale and delivery model
About 351,600 employees, mostly in India.
Evidence: Form 10-K (FY2025)
2. Margin and cash
Operating margin rose to 16.1% in 2025 and operating cash flow was $2.9B.
Evidence: Form 10-K (FY2025); SEC EDGAR XBRL
3. Shareholder returns
Dividend raised every year ($0.96 in 2021 to $1.24 in 2025); 2026 buyback plan raised to $2B.
Evidence: SEC EDGAR XBRL; 8-K filed 2026-05-18
Weaknesses
1. Modest growth
Revenue grew only from $18.5B (2021) to $21.1B (2025), and 2025 included acquired Belcan revenue.
Evidence: SEC EDGAR XBRL
2. Weak CMT
Communications, Media and Technology grew 1.0% in 2025.
Evidence: Form 10-K (FY2025)
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
18.2x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.49%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
27%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
6.5%
(Operating CF − capex) ÷ market cap
1. Capital returns
Dividends plus about $2B of 2026 buybacks.
- What has to hold
- Cash flow stays near $2–3B.
- The other side
- Some buybacks are funded with debt.
Evidence: 8-K filed 2026-05-18
2. AI services demand
Management says the AI market is moving from capability to value realization; over 50% of Cognizant's code is now AI-assisted.
- What has to hold
- AI drives services spending.
- The other side
- AI could also reduce demand for labor-based services.
Evidence: Q3 2026 press release
2021 and 2022 total assets are both $17,852M per the FY2022 10-K balance sheet.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
58.0x
$1.91B vs. $33M
Interest coverage (operating income ÷ interest expense)
91.6x
$3.39B vs. $37M
Free cash flow ÷ dividends paid
4.3x
$2.6B vs. $610M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -0.4% in FY2023 ($19.43B → $19.35B) | Yes, by FY2024 |
| Operating income | -9.4% in FY2023 ($2.97B → $2.69B) | Yes, by FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Low debt
Interest-bearing debt was about $0.6B at the end of 2025, against $1.9B of cash.
Source: SEC EDGAR XBRL
Diversified industries
No segment exceeds 30% of revenue.
Source: Form 10-K (FY2025)
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Cognizant has won a roughly $298 million judgment against Syntel in its long-running trade-secrets case, now on appeal; Cognizant will not book the gain until it becomes realizable. Cognizant also released most of its India provident-fund accrual after new labor rules took effect.
1 open matter · 1 settled or closed
Syntel trade-secrets litigation
On appealLawsuitSyntel v. TriZetto and Cognizant (S.D.N.Y.; 2d Cir.)
Cognizant and TriZetto won on liability for Syntel's misuse of TriZetto's proprietary technology. A June 2025 retrial on damages returned a $70 million compensatory award, and post-trial rulings raised the total to about $298 million including punitive damages, interest and fees. Judgment was entered April 29, 2026.
- Amounts
- About $298 million plus post-judgment interest owed to Cognizant (a gain contingency, not recorded).
- Next step
- Syntel filed a notice of appeal on May 19, 2026.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
India provident fund contribution obligation
ResolvedRegulatory proceedingGovernment of India (Employees' Provident Fund)
A 2019 Supreme Court of India ruling widened required contributions, and Cognizant accrued $117 million for prior periods. After the new Labor Code and 2026 rules, it recorded an $81 million benefit in Q2 2026.
- Amounts
- Remaining liability $20 million at September 30, 2026.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Company statement: Cognizant does not expect other claims to have a material adverse effect on its financial position.
Based on Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Competition and AI disruption
- Company disclosure (summarized from the 10-K)
- Direct competitors include Accenture, Atos, Capgemini, CGI, Deloitte Digital, DXC, EPAM, Genpact, HCLTech, IBM Consulting, Infosys, TCS and Wipro, plus clients' in-house Global Capability Centers.
- Company’s stated mitigation
- Investment in AI capabilities.
- This site’s assessment
- Impact Med / Likelihood High
- 2Law & regulation
Indian tax and labor regulation
- Company disclosure (summarized from the 10-K)
- Cognizant is in an ongoing tax dispute with Indian authorities, and India's new Labor Code may raise employment costs.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3FX & interest rates
Currency
- Company disclosure (summarized from the 10-K)
- Many costs are in Indian rupees while revenue is mostly in U.S. dollars, euros and pounds; hedging may not fully offset currency moves.
- Company’s stated mitigation
- Cash flow hedges.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Labor & workforce
Talent and attrition
- Company disclosure (summarized from the 10-K)
- Results depend on attracting and retaining skilled employees.
- Company’s stated mitigation
- Training and internal promotion programs.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Information security
Client data
- Company disclosure (summarized from the 10-K)
- Security breaches could expose client data.
- Company’s stated mitigation
- Although our cybersecurity risk management program utilizes various procedures and controls to mitigate our exposure to the risks described above, the cybersecurity threat landscape is rapidly evolving and increasingly sophisticated.
- This site’s assessment
- Impact Med / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (1)
Finally, AI technology is subject to heightened public and media scrutiny, including with respect to workplace impacts, privacy and ethical concerns. Read more
Negative public perception could adversely affect customer demand and our investments in AI technology, which could in turn adversely affect our business or reputation.
No longer in the text (4)
Finally, AI technology may be viewed negatively by the public due to media scrutiny over issues such as job displacement, privacy and ethical AI concerns. Read more
This negative perception can adversely affect our investments in AI technology, both directly and indirectly.
Additionally, our efforts to offer our employees a value proposition that is competitive and appealing may be unsuccessful and could have an adverse effect on engagement and retention, which may materially adversely affect our business.
Our NextGen program and the associated reductions in headcount and consolidation of office space could disrupt our business and may not result in anticipated savings.
At the end of 2024, we completed our NextGen program, which was aimed at simplifying our operating model, optimizing corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment. Read more
In 2024, we incurred $ 134 million of employee separation, facility exit and other costs related to the program, bringing the total costs incurred since inception to $363 million. See Note 4 to our consolidated financial statements. Our NextGen program may result in the loss of institutional knowledge and expertise, the reallocation of certain roles and responsibilities across the Company, difficulties in the retention of our remaining employees and reduced productivity among our remaining employees, all of which could have a material adverse affect on our operations. In addition, we may not realize, in full or in part, the anticipated benefits, savings…
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 12, 2026 ↗ with the 10-K filed Feb 12, 2025 ↗.
26
What to watch going forwardSite analysis
- 2026 constant-currency growth guidance of 4.0–5.5%.
- Bookings trend.
- AI's effect on demand for services.
- Buybacks funded partly by borrowing ($1B revolver draw in May 2026).
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Built on10-K FY2025 · filed 2026-02-12
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Cognizant’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.