📊 CTSH Key Takeaways
Investment Thesis
Cognizant demonstrates solid financial health with strong cash generation (12.3% FCF margin, $2.6B annually) and exceptional balance sheet strength (0.04x debt/equity, 96.8x interest coverage). However, revenue stagnation (+0.0% YoY) and modest net income decline (-0.4% YoY) indicate growth challenges despite maintaining healthy profitability margins (10.6% net margin, 16.1% operating margin).
CTSH Strengths
- Exceptional balance sheet with minimal leverage (0.04x debt/equity) and substantial liquidity (2.14x current ratio)
- Strong and consistent free cash flow generation ($2.6B annually, 12.3% FCF margin) demonstrates operational efficiency
- Solid profitability with 10.6% net margin and 14.9% ROE despite revenue headwinds
- Excellent interest coverage ratio (96.8x) indicating negligible financial distress risk
CTSH Risks
- Revenue stagnation at +0.0% YoY signals mature market or competitive pressures in IT services sector
- Net income declining (-0.4% YoY) suggests margin compression or operational challenges despite flat revenue
- High insider activity (51 Form 4 filings in 90 days) warrants monitoring for potential governance or confidence concerns
- Lack of gross margin data limits visibility into underlying pricing power and cost structure dynamics
Key Metrics to Watch
- Revenue growth acceleration and segment-level performance trends
- Operating margin sustainability and expense management efficiency
- Free cash flow consistency and working capital management
- Insider transaction patterns and organizational stability indicators
CTSH Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.14x current ratio provides a solid financial cushion.
CTSH Profitability Ratios
CTSH vs Technology Sector
How COGNIZANT TECHNOLOGY SOLUTIONS CORP compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CTSH Balance Sheet & Liquidity
CTSH 5-Year Financial Trend
5-Year Trend Summary: COGNIZANT TECHNOLOGY SOLUTIONS CORP's revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.21 reflects profitable operations.
CTSH Growth Metrics (YoY)
CTSH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.0B | $274.0M | $0.56 |
| Q2 2025 | $4.9B | $546.0M | $1.14 |
| Q1 2025 | $4.8B | $546.0M | $1.10 |
| Q3 2024 | $4.9B | $463.0M | $1.04 |
| Q2 2024 | $4.9B | $463.0M | $0.91 |
| Q1 2024 | $4.8B | $546.0M | $1.10 |
| Q3 2023 | $4.9B | $463.0M | $1.04 |
| Q2 2023 | $4.9B | $463.0M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CTSH Capital Allocation
CTSH SEC Filings
Access official SEC EDGAR filings for COGNIZANT TECHNOLOGY SOLUTIONS CORP (CIK: 0001058290)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773779477.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773779429.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773779382.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773779345.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773779302.xml | View → |
❓ Frequently Asked Questions about CTSH
What is the AI rating for CTSH?
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTSH's key strengths?
Exceptional balance sheet with minimal leverage (0.04x debt/equity) and substantial liquidity (2.14x current ratio). Strong and consistent free cash flow generation ($2.6B annually, 12.3% FCF margin) demonstrates operational efficiency.
What are the risks of investing in CTSH?
Revenue stagnation at +0.0% YoY signals mature market or competitive pressures in IT services sector. Net income declining (-0.4% YoY) suggests margin compression or operational challenges despite flat revenue.
What is CTSH's revenue and growth?
COGNIZANT TECHNOLOGY SOLUTIONS CORP reported revenue of $21.1B.
Does CTSH pay dividends?
COGNIZANT TECHNOLOGY SOLUTIONS CORP pays dividends, with $610.0M distributed to shareholders in the trailing twelve months.
Where can I find CTSH SEC filings?
Official SEC filings for COGNIZANT TECHNOLOGY SOLUTIONS CORP (CIK: 0001058290) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTSH's EPS?
COGNIZANT TECHNOLOGY SOLUTIONS CORP has a diluted EPS of $4.56.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.