Cognizant Technology Solutions Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Cognizant Technology Solutions has an operating margin of 16.1%, meaning the company retains $16 of operating profit per $100 of revenue. This strong profitability earns a score of 80/100, reflecting efficient cost management and pricing power. This is up from 14.6% the prior year.
Cognizant Technology Solutions's revenue declined 100% year-over-year, from $19.7B to $21K. This contraction results in a growth score of 0/100.
Cognizant Technology Solutions carries a low D/E ratio of 0.04, meaning only $0.04 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.14, Cognizant Technology Solutions holds $2.14 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 65/100.
Cognizant Technology Solutions has a free cash flow margin of 12.3%, earning a moderate score of 61/100. The company generates positive cash flow after capital investments, but with room for improvement.
Cognizant Technology Solutions's ROE of 14.8% shows moderate profitability relative to equity, earning a score of 59/100. This is down from 15.6% the prior year.
Cognizant Technology Solutions scores 3369118.56, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($31.9B) relative to total liabilities ($6K). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Cognizant Technology Solutions passes 7 of 9 financial strength tests. 3 of 4 profitability signals pass, all 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Cognizant Technology Solutions generates $1.29 in operating cash flow ($3K OCF vs $2K net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Cognizant Technology Solutions earns $91.6 in operating income for every $1 of interest expense ($3K vs $37). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
This page shows Cognizant Technology Solutions (CTSH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Cognizant Technology Solutions generated $21K in revenue in fiscal year 2025. This represents a decrease of 100.0% from the prior year.
Cognizant Technology Solutions's EBITDA was $4K in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 100.0% from the prior year.
Cognizant Technology Solutions generated $3K in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 100.0% from the prior year.
Cognizant Technology Solutions reported $2K in net income in fiscal year 2025. This represents a decrease of 100.0% from the prior year.
Cognizant Technology Solutions earned $4.56 per diluted share (EPS) in fiscal year 2025. This represents an increase of 1.1% from the prior year.
Cognizant Technology Solutions held $2K in cash against $543 in long-term debt as of fiscal year 2025.
Cognizant Technology Solutions paid $1.16 per share in dividends in fiscal year 2025. This represents a decrease of 3.3% from the prior year.
Cognizant Technology Solutions had 478M shares outstanding in fiscal year 2025. This represents a decrease of 3.3% from the prior year.
Cognizant Technology Solutions's gross margin was 33.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.6 percentage points from the prior year.
Cognizant Technology Solutions's operating margin was 16.1% in fiscal year 2025, reflecting core business profitability. This is up 1.4 percentage points from the prior year.
Cognizant Technology Solutions's net profit margin was 10.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.8 percentage points from the prior year.
Cognizant Technology Solutions's ROE was 14.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.7 percentage points from the prior year.
Cognizant Technology Solutions spent $1K on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 100.0% from the prior year.
Cognizant Technology Solutions invested $288 in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 100.0% from the prior year.
CTSH Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $5.3B-1.5% | $5.4B+3.2% | $5.2B+2.5% | $5.1B+0.6% | $5.1B+0.8% | $5.0B+4.0% | $4.8B+1.9% | $4.8B |
| Cost of Revenue | $3.5B-1.3% | $3.6B+2.9% | $3.5B+2.4% | $3.4B+3.0% | $3.3B-0.4% | $3.3B+3.3% | $3.2B+1.8% | $3.1B |
| Gross Profit | $1.8B-1.9% | $1.8B+3.9% | $1.8B+2.8% | $1.7B-3.8% | $1.8B+3.0% | $1.7B+5.3% | $1.6B+2.0% | $1.6B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $806.0M-3.2% | $833.0M+2.8% | $810.0M+2.4% | $791.0M-6.3% | $844.0M+1.3% | $833.0M+6.7% | $781.0M+2.1% | $765.0M |
| Operating Income | $853.0M-1.5% | $866.0M+6.0% | $817.0M-4.2% | $853.0M+13.6% | $751.0M+1.8% | $738.0M+4.2% | $708.0M+1.9% | $695.0M |
| Interest Expense | $8.0M0.0% | $8.0M-11.1% | $9.0M-25.0% | $12.0M-36.8% | $19.0M+35.7% | $14.0M+40.0% | $10.0M-9.1% | $11.0M |
| Income Tax | $235.0M-61.7% | $613.0M+211.2% | $197.0M-7.5% | $213.0M+7.0% | $199.0M+17.1% | $170.0M+3.0% | $165.0M-7.8% | $179.0M |
| Net Income | $648.0M+136.5% | $274.0M-57.5% | $645.0M-2.7% | $663.0M+21.4% | $546.0M-6.2% | $582.0M+2.8% | $566.0M+3.7% | $546.0M |
| EPS (Diluted) | $1.35+141.1% | $0.56-57.3% | $1.31-2.2% | $1.34+21.8% | $1.10-6.0% | $1.17+2.6% | $1.14+3.6% | $1.10 |
CTSH Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $20.7B+2.8% | $20.1B-0.1% | $20.2B+1.0% | $20.0B0.0% | $20.0B-1.0% | $20.2B+8.5% | $18.6B+0.9% | $18.4B |
| Current Assets | $7.8B-3.4% | $8.1B+6.4% | $7.6B+0.8% | $7.5B+0.5% | $7.5B-0.6% | $7.5B+4.2% | $7.2B+2.2% | $7.1B |
| Cash & Equivalents | $1.9B-18.8% | $2.3B+30.3% | $1.8B-9.3% | $2.0B-11.3% | $2.2B+10.8% | $2.0B-8.2% | $2.2B-1.7% | $2.2B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $4.4B+1.1% | $4.4B-0.2% | $4.4B+3.8% | $4.2B+4.4% | $4.1B-3.5% | $4.2B+5.9% | $4.0B+4.0% | $3.8B |
| Goodwill | $7.1B+0.1% | $7.1B-0.3% | $7.1B+1.6% | $7.0B+0.8% | $7.0B-2.5% | $7.1B+11.5% | $6.4B0.0% | $6.4B |
| Total Liabilities | $5.7B+8.4% | $5.2B+7.4% | $4.9B-3.8% | $5.1B-8.8% | $5.6B-2.7% | $5.7B+22.0% | $4.7B-4.8% | $4.9B |
| Current Liabilities | $3.7B+6.6% | $3.4B+8.8% | $3.2B-7.3% | $3.4B-5.0% | $3.6B+5.8% | $3.4B+15.0% | $2.9B-2.2% | $3.0B |
| Long-Term Debt | $543.0M-1.5% | $551.0M-1.4% | $559.0M-1.4% | $567.0M-35.2% | $875.0M-26.0% | $1.2B+100.5% | $590.0M-1.3% | $598.0M |
| Total Equity | $15.0B+0.8% | $14.9B-2.6% | $15.3B+2.6% | $14.9B+3.4% | $14.4B-0.3% | $14.5B+4.0% | $13.9B+3.0% | $13.5B |
| Retained Earnings | $15.2B+1.4% | $14.9B-1.9% | $15.2B+1.2% | $15.0B+2.4% | $14.7B+2.4% | $14.3B+2.3% | $14.0B+3.0% | $13.6B |
CTSH Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $858.0M-30.1% | $1.2B+208.3% | $398.0M-0.5% | $400.0M-56.5% | $920.0M+8.6% | $847.0M+223.3% | $262.0M+175.8% | $95.0M |
| Capital Expenditures | $77.0M+14.9% | $67.0M0.0% | $67.0M-13.0% | $77.0M-7.2% | $83.0M+48.2% | $56.0M-29.1% | $79.0M0.0% | $79.0M |
| Free Cash Flow | $781.0M-32.7% | $1.2B+250.5% | $331.0M+2.5% | $323.0M-61.4% | $837.0M+5.8% | $791.0M+332.2% | $183.0M+1043.8% | $16.0M |
| Investing Cash Flow | -$75.0M-13.6% | -$66.0M+19.5% | -$82.0M-1071.4% | -$7.0M+91.1% | -$79.0M+93.7% | -$1.3B-1482.3% | -$79.0M+66.8% | -$238.0M |
| Financing Cash Flow | -$487.0M+20.4% | -$612.0M-18.6% | -$516.0M+21.5% | -$657.0M-9.1% | -$602.0M-384.0% | $212.0M+195.9% | -$221.0M+27.3% | -$304.0M |
| Dividends Paid | $151.0M0.0% | $151.0M-1.3% | $153.0M-1.3% | $155.0M+3.3% | $150.0M+0.7% | $149.0M-0.7% | $150.0M-0.7% | $151.0M |
| Share Buybacks | $338.0M-27.0% | $463.0M+25.8% | $368.0M+76.1% | $209.0M+35.7% | $154.0M-36.4% | $242.0M+218.4% | $76.0M-42.9% | $133.0M |
CTSH Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.7%-0.1pp | 33.9%+0.2pp | 33.7%+0.1pp | 33.6%-1.5pp | 35.1%+0.8pp | 34.4%+0.4pp | 33.9%+0.0pp | 33.9% |
| Operating Margin | 16.0%0.0pp | 16.0%+0.4pp | 15.6%-1.1pp | 16.7%+1.9pp | 14.8%+0.1pp | 14.6%+0.0pp | 14.6%0.0pp | 14.6% |
| Net Margin | 12.2%+7.1pp | 5.1%-7.2pp | 12.3%-0.7pp | 13.0%+2.2pp | 10.7%-0.8pp | 11.5%-0.1pp | 11.7%+0.2pp | 11.5% |
| Return on Equity | 4.3%+2.5pp | 1.8%-2.4pp | 4.2%-0.2pp | 4.5%+0.7pp | 3.8%-0.2pp | 4.0%-0.0pp | 4.1%+0.0pp | 4.0% |
| Return on Assets | 3.1%+1.8pp | 1.4%-1.8pp | 3.2%-0.1pp | 3.3%+0.6pp | 2.7%-0.2pp | 2.9%-0.2pp | 3.0%+0.1pp | 3.0% |
| Current Ratio | 2.14-0.2 | 2.36-0.1 | 2.41+0.2 | 2.22+0.1 | 2.09-0.1 | 2.23-0.2 | 2.46+0.1 | 2.35 |
| Debt-to-Equity | 0.040.0 | 0.040.0 | 0.040.0 | 0.04-0.0 | 0.06-0.0 | 0.08+0.0 | 0.040.0 | 0.04 |
| FCF Margin | 14.6%-6.8pp | 21.4%+15.1pp | 6.3%0.0pp | 6.3%-10.2pp | 16.5%+0.8pp | 15.7%+11.9pp | 3.8%+3.4pp | 0.3% |
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Frequently Asked Questions
What is Cognizant Technology Solutions's annual revenue?
Cognizant Technology Solutions (CTSH) reported $21K in total revenue for fiscal year 2025. This represents a -100.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Cognizant Technology Solutions's revenue growing?
Cognizant Technology Solutions (CTSH) revenue declined by 100% year-over-year, from $19.7B to $21K in fiscal year 2025.
Is Cognizant Technology Solutions profitable?
Yes, Cognizant Technology Solutions (CTSH) reported a net income of $2K in fiscal year 2025, with a net profit margin of 10.6%.
What is Cognizant Technology Solutions's earnings per share (EPS)?
Cognizant Technology Solutions (CTSH) reported diluted earnings per share of $4.56 for fiscal year 2025. This represents a 1.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Cognizant Technology Solutions's EBITDA?
Cognizant Technology Solutions (CTSH) had EBITDA of $4K in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Cognizant Technology Solutions have?
As of fiscal year 2025, Cognizant Technology Solutions (CTSH) had $2K in cash and equivalents against $543 in long-term debt.
What is Cognizant Technology Solutions's gross margin?
Cognizant Technology Solutions (CTSH) had a gross margin of 33.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Cognizant Technology Solutions's operating margin?
Cognizant Technology Solutions (CTSH) had an operating margin of 16.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Cognizant Technology Solutions's net profit margin?
Cognizant Technology Solutions (CTSH) had a net profit margin of 10.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Cognizant Technology Solutions pay dividends?
Yes, Cognizant Technology Solutions (CTSH) paid $1.16 per share in dividends during fiscal year 2025.
What is Cognizant Technology Solutions's return on equity (ROE)?
Cognizant Technology Solutions (CTSH) has a return on equity of 14.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Cognizant Technology Solutions's free cash flow?
Cognizant Technology Solutions (CTSH) generated $3K in free cash flow during fiscal year 2025. This represents a -100.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Cognizant Technology Solutions's operating cash flow?
Cognizant Technology Solutions (CTSH) generated $3K in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Cognizant Technology Solutions's total assets?
Cognizant Technology Solutions (CTSH) had $21K in total assets as of fiscal year 2025, including both current and long-term assets.
What are Cognizant Technology Solutions's capital expenditures?
Cognizant Technology Solutions (CTSH) invested $288 in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
Does Cognizant Technology Solutions buy back shares?
Yes, Cognizant Technology Solutions (CTSH) spent $1K on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Cognizant Technology Solutions have outstanding?
Cognizant Technology Solutions (CTSH) had 478M shares outstanding as of fiscal year 2025.
What is Cognizant Technology Solutions's current ratio?
Cognizant Technology Solutions (CTSH) had a current ratio of 2.14 as of fiscal year 2025, which is generally considered healthy.
What is Cognizant Technology Solutions's debt-to-equity ratio?
Cognizant Technology Solutions (CTSH) had a debt-to-equity ratio of 0.04 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Cognizant Technology Solutions's return on assets (ROA)?
Cognizant Technology Solutions (CTSH) had a return on assets of 10.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Cognizant Technology Solutions's Altman Z-Score?
Cognizant Technology Solutions (CTSH) has an Altman Z-Score of 3369118.56, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Cognizant Technology Solutions's Piotroski F-Score?
Cognizant Technology Solutions (CTSH) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Cognizant Technology Solutions's earnings high quality?
Cognizant Technology Solutions (CTSH) has an earnings quality ratio of 1.29x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Cognizant Technology Solutions cover its interest payments?
Cognizant Technology Solutions (CTSH) has an interest coverage ratio of 91.6x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Cognizant Technology Solutions?
Cognizant Technology Solutions (CTSH) scores 61 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.