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CTSH · Nasdaq · United States · Services-Computer Programming Services
In shortCOGNIZANT TECHNOLOGY SOLUTIONS CORP is profitable, generates cash and holds more cash than debt, with revenue growing (+7.0% last year).
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 16.1% | 70/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 10.6% | 62/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 15.2% | 76/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 13.9% | 93/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 2.14× | 100/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.04× | 100/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | Net cash | 100/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 91.59× | 100/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 7.58 | 100/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 12.3% | 69/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.16× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 1 of 5 | 67/100 |
| Revenue growth volatility | 4.5% | 95/100 |
| Operating margin volatility | 0.8% | 100/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 2.8% | 32/100 |
|---|---|---|
| EPS growth, 3-year average | 1.1% | 31/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 18,507 | 19,428 | 19,353 | 19,736 | 21,108 |
| Selling, general & admin | 3,503 | 3,443 | 3,252 | 3,223 | 3,240 |
| Operating income | 2,826 | 2,968 | 2,689 | 2,892 | 3,389 |
| Interest expense | 9 | 19 | 41 | 54 | 37 |
| Pre-tax income | 2,827 | 3,016 | 2,787 | 2,938 | 3,479 |
| Income tax | 693 | 730 | 668 | 713 | 1,258 |
| Net income | 2,137 | 2,290 | 2,126 | 2,240 | 2,230 |
| Diluted EPS | $4.05 | $4.41 | $4.21 | $4.51 | $4.56 |
| Diluted shares (millions) | 528 | 519 | 505 | 497 | 489 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
7.58 Safe zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
7/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 30, 2026 · Data updated Apr 29, 2026