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CTSH

Cognizant Technology Solutions Corporation

CTSH

Cognizant Technology Solutions Corporation • NASDAQ
$77.72 ▲ 0.87% (+0.67)
Market Cap $38.20 B
52w High $90.82
52w Low $65.15
Dividend Yield 1.24%
P/E 17.99
Volume 1.69M
Outstanding Shares 491.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $5.415B ▲ $968M ▲ $274M ▼ 5.06% ▼ $0.56 ▼ $1.03B ▲
Q2-2025 $5.245B ▲ $949M ▲ $645M ▼ 12.297% ▼ $1.31 ▼ $990M ▼
Q1-2025 $5.115B ▲ $865M ▼ $663M ▲ 12.962% ▲ $1.34 ▲ $1.02B ▲
Q4-2024 $5.082B ▲ $1.034B ▲ $546M ▼ 10.744% ▼ $1.1 ▼ $902M ▲
Q3-2024 $5.044B $995M $582M 11.538% $1.17 $895M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $2.354B ▲ $20.134B ▼ $5.237B ▲ $14.897B ▼
Q2-2025 $1.808B ▼ $20.164B ▲ $4.876B ▼ $15.288B ▲
Q1-2025 $1.992B ▼ $19.967B ▲ $5.068B ▼ $14.899B ▲
Q4-2024 $2.243B ▲ $19.966B ▼ $5.558B ▼ $14.408B ▼
Q3-2024 $2.025B $20.164B $5.712B $14.452B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $274M ▼ $1.227B ▲ $-66M ▲ $-612M ▼ $103M ▼ $1.16B ▲
Q2-2025 $645M ▼ $398M ▼ $-82M ▼ $-516M ▲ $364M ▲ $331M ▲
Q1-2025 $663M ▲ $400M ▼ $-7M ▲ $-657M ▼ $-54M ▲ $323M ▼
Q4-2024 $546M ▼ $920M ▲ $-79M ▲ $-602M ▼ $-330M ▲ $837M ▲
Q3-2024 $582M $847M $-1.25B $212M $-350M $791M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Communication Media and Technology
Communication Media and Technology
 $810.00M ▲$800.00M ▼$840.00M ▲$850.00M ▲
Financial Services
Financial Services
 $1.44Bn ▲$1.46Bn ▲$1.55Bn ▲$1.58Bn ▲
Healthcare Segment
Healthcare Segment
 $1.54Bn ▲$1.57Bn ▲$1.55Bn ▼$1.60Bn ▲
Products and Resources
Products and Resources
 $1.29Bn ▲$1.28Bn ▼$1.31Bn ▲$1.38Bn ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been broadly flat in recent years, edging up only slightly, which suggests a mature business rather than a fast‑growth story. The more encouraging sign is profitability: margins have generally improved compared with a few years ago, and earnings per share have climbed steadily. This points to better cost control, more efficient delivery, and a shift toward higher‑value work. The trade‑off is that growth is modest, so much of the progress is coming from doing existing work more profitably rather than rapidly expanding the top line.

Balance Sheet

Balance Sheet The balance sheet looks solid and conservative. Total assets and shareholder equity have been building over time, indicating retained earnings and a stronger capital base. Debt sits at a manageable level and has not ballooned, which reduces financial risk and interest burden. Cash balances move around year to year but remain healthy enough to provide flexibility for operations, buybacks, dividends, or acquisitions. Overall, the company appears financially stable with no obvious balance sheet stress.

Cash Flow

Cash Flow The business consistently generates more cash from operations than it spends on capital investments, leading to reliable free cash flow. Capital spending is relatively modest, which fits an asset‑light services model. One watchpoint is that operating cash flow has eased back from its peak a few years ago, even as profits improved, hinting that cash conversion has softened somewhat. Still, free cash flow remains solid, giving the company room to fund shareholder returns and strategic initiatives without leaning heavily on debt.

Competitive Edge

Competitive Edge Cognizant operates in a very competitive global IT services market alongside heavyweight rivals. Its strengths lie in deep relationships and domain knowledge in key verticals like financial services and healthcare, where switching providers can be disruptive and costly for clients. This creates meaningful, though not unbreakable, switching costs. The company’s global delivery model and client‑centric approach help it remain embedded as a strategic partner rather than a commoditized vendor. The main challenge is to defend and grow this position as peers also invest aggressively in digital and AI capabilities, putting constant pressure on pricing and differentiation.

Innovation and R&D

Innovation and R&D The company is clearly leaning into AI, cloud, and digital transformation as its next growth engines. Its Neuro AI platform, dedicated AI lab, and large number of AI projects show a serious commitment to building proprietary tools rather than only reselling third‑party technology. Recent acquisitions in ServiceNow, engineering R&D, and Azure consulting deepen its technical bench and industry reach. Cognizant is also rolling out branded platforms for software engineering, cloud modernization, cybersecurity, and sector‑specific solutions. The upside is a move to more scalable, higher‑margin, technology‑driven work; the risk is execution—integrating acquisitions, standardizing platforms, and successfully shifting the mix of revenue in a crowded, fast‑moving space.

Summary

Cognizant today looks like a mature, profitable IT services company steadily improving its efficiency while growing only modestly. Its financial footing is strong, with a conservative balance sheet and dependable free cash flow that provide resilience and strategic flexibility. Competitively, it benefits from long‑standing, sticky client relationships and deep industry know‑how, but it operates in a tightly contested field with large, capable rivals. The company is in the middle of a strategic pivot toward AI and digital platforms, backed by targeted acquisitions and internal innovation engines. The central question for the next few years is less about survival and more about whether this pivot can reignite meaningful growth and further strengthen margins without diluting the advantages it has built in its traditional services base.

NEWS

November 20, 2025 · 4:00 AM UTC

Cognizant selected by CEPI to transform enterprise architecture and core ERP operations

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November 13, 2025 · 12:00 PM UTC

Gryphon Investors to Sell 3Cloud to Cognizant

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November 13, 2025 · 11:55 AM UTC

Cognizant to Acquire 3Cloud, Creating a Leading Force in Microsoft Azure Services and Enterprise AI Transformation

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November 6, 2025 · 8:30 AM UTC

Cognizant Recognized as One of America's Best Employers for Veterans by Forbes

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November 4, 2025 · 12:01 AM UTC

Cognizant Adopts Anthropic's Claude to Accelerate Enterprise AI Adoption at Scale and Deploys Claude to Drive Internal AI Transformation

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