Item 1. Business Cognizant is one of the world’s leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients. We help clients modernize technology, reimagine processes and transform experiences so they can stay ahead in today's fast-changing world, where AI is reshaping organizations in every field. As an AI builder, we provide deep expertise at the intersection of industry and technology, combining our perspective with extensive knowledge of our clients' organizations to build industry-specific platforms and incorporate context into systems, AI models and custom solutions. We tailor our services and solutions to specific industries with an integrated global delivery model that employs client service and delivery teams based at client locations and dedicated global and regional delivery centers.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 21.1B | 21.1B | 19.7B | 19.4B | 19.4B | 18.5B |
| Net Income | 2.2B | 2.2B | 2.2B | 2.1B | 2.3B | 2.1B |
| EPS | $4.56 | $4.56 | $4.51 | $4.21 | $4.41 | $4.05 |
| Free Cash Flow | 2.6B | 2.6B | 1.8B | 2.0B | 2.2B | 2.2B |
| ROIC | 15.2% | 15.8% | 16.0% | 17.2% | 19.8% | 19.5% |
| Gross Margin | 33.7% | 33.7% | 34.3% | 34.6% | 35.9% | 37.3% |
| Debt/Equity | 0.08 | 0.08 | 0.10 | 0.10 | 0.13 | 0.14 |
| Dividends/Share | $1.25 | $1.24 | $1.20 | $1.16 | $1.08 | $0.96 |
| Operating Income | 3.4B | 3.4B | 2.9B | 2.7B | 3.0B | 2.8B |
| Operating Margin | 16.1% | 16.1% | 14.7% | 13.9% | 15.3% | 15.3% |
| ROE | 14.9% | 15.2% | 15.5% | 16.1% | 18.6% | 17.8% |
| Shares Outstanding | 489M | 489M | 497M | 505M | 519M | 528M |
COGNIZANT TECHNOLOGY SOLUTIONS CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
COGNIZANT TECHNOLOGY SOLUTIONS CORP trades at 13.3x trailing earnings, compared to its 15-year median P/E of 18.0x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 11.2x vs a median of 16.9x. The company's 5-year average ROIC is 17.7% with a gross margin of 35.2%. Total shareholder yield (dividends + buybacks) is 6.7%. At current prices, the estimated annualized return to fair value is -0.0%.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a current P/E ratio of 13.3, compared to its historical median P/E of 18.0. The stock is currently considered Cheap based on its historical valuation range.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a 5-year average return on invested capital (ROIC) of 17.7%. This indicates strong capital allocation and a potential competitive advantage.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a market capitalization of $29.6B. It is classified as a large-cap stock.
Yes, COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) pays a dividend with a trailing twelve-month yield of 2.06%. The company also returns capital through share buybacks, with a buyback yield of 4.66%.
Based on historical P/E analysis, COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) appears cheap. The current P/E of 13.3 is 26% below its historical median of 18.0. The estimated fair value CAGR (P/E method) is 7.1%.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) operates in the Services-Computer Programming Services industry, within the Technology sector.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) reported annual revenue of $21.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a net profit margin of 10.6%. This is a healthy margin.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) generated $2.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a debt-to-equity ratio of 0.08. This indicates a conservatively financed balance sheet.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) reported earnings per share (EPS) of $4.56 in its most recent fiscal year.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a return on equity (ROE) of 15.2%. This indicates the company generates strong returns for shareholders.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a 5-year average gross margin of 35.2%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a book value per share of $30.70, based on its most recent annual SEC filing.
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