Cognizant Technology Solutions

CTSH
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$5.4B
Q1 2026 · +3.9% YoY
TTM ROIC
18.5%
FY2025 · NOPAT / Invested Capital (Book); NOPAT = Adj. Operating Income × (1 - 25% tax rate) · WACC ~8.4% · Moat spread +10.1pp

Financial Snapshot

ticker: CTSH step: 04 generated: 2026-05-12 source: quick-research

Cognizant Technology Solutions Corporation (CTSH) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$19.4B $19.4B $19.7B +2.0%
Gross Margin ~31% ~31% ~32%
Adj. Operating Margin ~15.3% ~15.3% ~15.3% flat
Net Income (adj) ~$2.0B ~$2.15B ~$2.2B
Adj. EPS $4.42 $4.21 ~$4.75

Note: 2023 revenue declined slightly (-0.4%) due to post-pandemic IT spending digestion across enterprise clients. Recovery began in late 2023; full-year bookings of $26.3B in 2023 (+9% YoY) foreshadowed the 2024 recovery. Adj. EPS declined in 2023 due to investments in the NextGen program; 2024 showed recovery.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$2.5B (est.)
Free Cash Flow ~$2.2B (est.)
Cash & Equivalents ~$2.8B
Total Debt ~$0.8B (low leverage)

Key Ratios (approximate)

  • P/E: ~15x | EV/EBITDA: ~12x | FCF Yield: ~6%
  • Dividend Yield: ~1.6% | Adj. Operating Margin: 15.3–15.8%
  • Share Repurchase Authorization: $3.1B ($1.6B targeted for 2026)

Growth Profile

Revenue growth was flat from 2022–2023 as enterprise IT budgets were cut post-pandemic. The 2024 recovery (+2%) and 2025 acceleration (+7% to $21.1B) reflect large-deal wins in AI/cloud transformation and Health Sciences growth. Adjusted operating margin improved from 15.3% to 15.8% in 2025 via NextGen cost efficiencies. The company targets sustained mid-single-digit organic revenue growth with margin expansion of 20–40 bps per year.

Forward Estimates

  • FY2025 Revenue: $21.1B (+7%); Adj. EPS: $5.22–$5.26 (raised guidance)
  • FY2026E: Revenue ~$22–23B; EPS ~$5.60–$5.80
  • Capital Return 2026: $1.6B in buybacks + dividends
  • Bookings Trend: Record large-deal TCV in 2025; 60% YoY growth in >$100M deals

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $CTSH.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/ctsh/financials/md · → thesis · → memo