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Cognizant Technology Solutions Financials

CTSH
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

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).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 57 / 100
Financial Profile 57/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
58

Cognizant Technology Solutions has an operating margin of 16.1%, meaning the company retains $16 of operating profit per $100 of revenue. This results in a moderate score of 58/100, indicating healthy but not exceptional operating efficiency. This is up from 14.6% the prior year.

Growth
45

Cognizant Technology Solutions's revenue grew 7.0% year-over-year to $21.1B, a solid pace of expansion. This earns a growth score of 45/100.

Leverage
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.

Liquidity
39

Cognizant Technology Solutions's current ratio of 2.14 indicates adequate short-term liquidity, earning a score of 39/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
56

Cognizant Technology Solutions has a free cash flow margin of 12.3%, earning a moderate score of 56/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
44

Cognizant Technology Solutions's ROE of 14.8% shows moderate profitability relative to equity, earning a score of 44/100. This is down from 15.6% the prior year.

Altman Z-Score Safe
5.93

Cognizant Technology Solutions scores 5.93, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($29.3B) relative to total liabilities ($5.7B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Strong
7/9

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.

Earnings Quality Cash-Backed
1.29x

For every $1 of reported earnings, Cognizant Technology Solutions generates $1.29 in operating cash flow ($2.9B OCF vs $2.2B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe
91.6x

Cognizant Technology Solutions earns $91.6 in operating income for every $1 of interest expense ($3.4B vs $37.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$21.1B
YoY+7.0%
5Y CAGR+4.9%
10Y CAGR+5.4%

Cognizant Technology Solutions generated $21.1B in revenue in fiscal year 2025. This represents an increase of 7.0% from the prior year.

EBITDA
$3.9B
YoY+14.7%
5Y CAGR+8.1%
10Y CAGR+4.8%

Cognizant Technology Solutions's EBITDA was $3.9B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 14.7% from the prior year.

Net Income
$2.2B
YoY-0.4%
5Y CAGR+9.9%
10Y CAGR+3.2%

Cognizant Technology Solutions reported $2.2B in net income in fiscal year 2025. This represents a decrease of 0.4% from the prior year.

EPS (Diluted)
$4.56
YoY+1.1%
5Y CAGR+12.2%
10Y CAGR+5.6%

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.

Cash & Balance Sheet

Free Cash Flow
$2.6B
YoY+42.0%
5Y CAGR-2.2%
10Y CAGR+3.1%

Cognizant Technology Solutions generated $2.6B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 42.0% from the prior year.

Cash & Debt
$1.9B
YoY-14.8%
5Y CAGR-6.6%
10Y CAGR-1.1%

Cognizant Technology Solutions held $1.9B in cash against $543.0M in long-term debt as of fiscal year 2025.

Dividends Per Share
$1.24
YoY+3.3%
5Y CAGR+7.1%

Cognizant Technology Solutions paid $1.24 per share in dividends in fiscal year 2025. This represents an increase of 3.3% from the prior year.

Shares Outstanding
478M
YoY-3.3%
5Y CAGR-2.1%
10Y CAGR-2.4%

Cognizant Technology Solutions had 478M shares outstanding in fiscal year 2025. This represents a decrease of 3.3% from the prior year.

Margins & Returns

Gross Margin
33.7%
YoY-0.6pp
5Y CAGR-2.2pp

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.

Operating Margin
16.1%
YoY+1.4pp
5Y CAGR+3.4pp
10Y CAGR-1.2pp

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.

Net Margin
10.6%
YoY-0.8pp
5Y CAGR+2.2pp
10Y CAGR-2.5pp

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.

Return on Equity
14.8%
YoY-0.7pp
5Y CAGR+2.0pp
10Y CAGR-2.6pp

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.

Capital Allocation

R&D Spending
N/A
Share Buybacks
$1.4B
YoY+127.8%
5Y CAGR-3.2%
10Y CAGR+11.6%

Cognizant Technology Solutions spent $1.4B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 127.8% from the prior year.

Capital Expenditures
$288.0M
YoY-3.0%
5Y CAGR-6.3%
10Y CAGR+0.5%

Cognizant Technology Solutions invested $288.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 3.0% 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) N/A $0.56-57.3% $1.31-2.2% $1.34 N/A $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

Cognizant Technology Solutions (CTSH) reported $21.1B in total revenue for fiscal year 2025. This represents a 7.0% 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.

Cognizant Technology Solutions (CTSH) revenue grew by 7% year-over-year, from $19.7B to $21.1B in fiscal year 2025.

Yes, Cognizant Technology Solutions (CTSH) reported a net income of $2.2B in fiscal year 2025, with a net profit margin of 10.6%.

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.

Cognizant Technology Solutions (CTSH) had EBITDA of $3.9B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Cognizant Technology Solutions (CTSH) had $1.9B in cash and equivalents against $543.0M in long-term debt.

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.

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.

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.

Yes, Cognizant Technology Solutions (CTSH) paid $1.24 per share in dividends during fiscal year 2025.

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.

Cognizant Technology Solutions (CTSH) generated $2.6B in free cash flow during fiscal year 2025. This represents a 42.0% 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.

Cognizant Technology Solutions (CTSH) generated $2.9B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Cognizant Technology Solutions (CTSH) had $20.7B in total assets as of fiscal year 2025, including both current and long-term assets.

Cognizant Technology Solutions (CTSH) invested $288.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Yes, Cognizant Technology Solutions (CTSH) spent $1.4B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Cognizant Technology Solutions (CTSH) had 478M shares outstanding as of fiscal year 2025.

Cognizant Technology Solutions (CTSH) had a current ratio of 2.14 as of fiscal year 2025, which is generally considered healthy.

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.

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.

Cognizant Technology Solutions (CTSH) has an Altman Z-Score of 5.93, 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.

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.

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.

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.

Cognizant Technology Solutions (CTSH) scores 57 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.

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