📊 CTSH Key Takeaways
Is Cognizant Technology Solutions Corp. (CTSH) a Good Investment?
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).
Cognizant shows solid core fundamentals with healthy operating and net margins, strong free cash flow generation, and a very conservative balance sheet with minimal leverage. Financial health is clearly strong, but revenue was flat year over year and net income was slightly down, which suggests limited near-term growth momentum. The business looks durable and profitable, but the quality of the investment case depends on whether it can reaccelerate top-line growth without sacrificing margins.
Why Buy Cognizant Technology Solutions Corp. Stock? CTSH 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
- 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
- Strong profitability with 16.1% operating margin and 10.6% net margin
- Excellent balance sheet with low debt, strong liquidity, and very high interest coverage
- Consistent cash generation with $2.60B in free cash flow and a 12.3% FCF margin
CTSH Stock Risks: Cognizant Technology Solutions Corp. Investment 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
- Flat revenue indicates weak growth momentum
- Slight year-over-year decline in net income suggests limited earnings expansion
- Margin stability could come under pressure if growth requires heavier reinvestment or pricing concessions
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
- Revenue growth
- Free cash flow margin
Cognizant Technology Solutions Corp. (CTSH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.14x current ratio provides a solid financial cushion.
CTSH Profit Margin, ROE & Profitability Analysis
CTSH vs Technology Sector: How Cognizant Technology Solutions Corp. Compares
How Cognizant Technology Solutions Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cognizant Technology Solutions Corp. Stock Overvalued? CTSH Valuation Analysis 2026
Based on fundamental analysis, Cognizant Technology Solutions Corp. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cognizant Technology Solutions Corp. Balance Sheet: CTSH Debt, Cash & Liquidity
CTSH Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CTSH Quarterly Earnings & 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.
Cognizant Technology Solutions Corp. Dividends, Buybacks & Capital Allocation
CTSH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cognizant Technology Solutions Corp. (CIK: 0001058290)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247239.xml | View → |
| 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 → |
❓ Frequently Asked Questions about CTSH
What is the AI rating for CTSH?
Cognizant Technology Solutions Corp. (CTSH) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTSH's key strengths?
Claude: 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. ChatGPT: Strong profitability with 16.1% operating margin and 10.6% net margin. Excellent balance sheet with low debt, strong liquidity, and very high interest coverage.
What are the risks of investing in CTSH?
Claude: 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. ChatGPT: Flat revenue indicates weak growth momentum. Slight year-over-year decline in net income suggests limited earnings expansion.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CTSH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cognizant Technology Solutions Corp. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CTSH stock overvalued or undervalued?
Valuation metrics for CTSH: ROE of 14.9% (sector avg: 22%), net margin of 10.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy CTSH stock in 2026?
Our dual AI analysis gives Cognizant Technology Solutions Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CTSH's free cash flow?
Cognizant Technology Solutions Corp.'s operating cash flow is $2.9B, with capital expenditures of $288.0M. FCF margin is 12.3%.
How does CTSH compare to other Technology stocks?
Vs Technology sector averages: Net margin 10.6% (avg: 18%), ROE 14.9% (avg: 22%), current ratio 2.14 (avg: 2.5).