Cognizant Technology Solutions CorporationCTSH
NasdaqGS•Technology•Information Technology Services
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
Cognizant Technology Solutions (CTSH) reported trailing twelve months revenue of $21.41B as of March 2026, a 6.5% increase year-over-year. Quarterly revenue reached $5.41B, reflecting continued top-line momentum.
Cognizant Technology Solutions generated $2.23B in TTM net income, with quarterly EBITDA of $984.00M. The operating margin contracted from 16.7% to 15.6%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (15.6%) and net margin (12.2%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 13.0% a year ago, reflecting increased costs or interest expense.
CTSH trades at a P/E of 13.1x (below the broader market average) and a P/S of 1.4x. The price-to-book ratio of 1.9x reflects a moderate premium to book value.
The company generated $198.00M in free cash flow over the trailing twelve months, a 38.7% decrease year-over-year, indicating cash generation ability. The balance sheet shows $20.50B in total assets with $535.00M in long-term debt against $15.07B in stockholders equity for a debt-to-equity ratio of 0.0, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~15.5%, suggesting durable pricing power and cost discipline.
ROE averages 15.3% but has fluctuated — the competitive advantage may be cyclical or emerging.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~11.1% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~15.8% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.0% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation