Cognizant Technology Solutions Corporation (CTSH) financials

NASDAQ · Technology · Information Technology Services · 356,700 employees · CEO Ravi Kumar Singisetti

Price: $65.11 +4.14%
Market cap: $29.1B
Enterprise value: $29.7B
Last report: Q3 '26 filed 2026-10-29
Next report: 2027-02-03 EPS est. $1.51

Revenue (TTM)$21.9B+5.0% vs a year agoLast 4 quarters; bars = each quarter

Operating margin (TTM)15.6%-0.2 pp vs a year agoOperating income $3.42B

Net income (TTM)$2.57B+20.9% vs a year agoAfter tax, incl. non-operating gains

Free cash flow (TTM)$2.36B-10.9% vs a year agoCapex $331M

Diluted EPS (TTM)$5.48+27.1% vs a year agoSum of the last 4 quarters

Net cash-$580M-149.0% vs a year agoCash + short-term investments - debt

Valuation & key figures

Market cap: $29.1B
Revenue: $21.9B
Revenue growth: +5%
Profit margin: 11.8%
P/E: 11.9×
P/S: 1.3×
EV / EBITDA: 7.2×
Free cash flow: $2.36B
Net income: $2.57B
Revenue estimate: $22.1B
Earnings: 2027-02-03
Dividend: $1.30

Key takeaways

Computed from the reported numbers - every statement carries the figure it rests on.

Last report (2026-10-29): revenue in line, EPS beat by 2.1%Revenue $5.66B vs $5.64B expected (+0.3%); EPS $1.49 vs $1.46 (+2.1%).
Revenue growth slowing: 4.6% year on yearQ3 '26 revenue $5.66B, against an average of 5.7% over the four quarters before.
Operating margin 15.6% (TTM), -0.2 pp on a year agoOperating income grew 3.9% while revenue grew 5.0%.
Capex 1.5% of revenue (a year ago 1.4%)$331M invested in the last 4 quarters (+12.6% on a year earlier). Free cash flow $2.36B = 91.8% of net income.
Returned $2.83B to shareholders = 119.8% of free cash flowBuybacks $2.22B (a year earlier $1.19B), dividends $616M, stock-based pay $123M (TTM). More than the free cash flow: paid from cash or debt.
Diluted share count down 7.6% in a year450M diluted shares in Q3 '26, 487M a year earlier.
Net debt $580MCash + short-term investments $1.55B, debt incl. leases $2.13B; a year ago net cash $1.18B.
Financial Services: revenue +12.0%, margin 16.0% (was 16.8%)Fastest-growing reported segment in Q3 '26: operating income $283M on revenue $1.77B (from the segment note of the filing).

Last quarter: Q3 '26

Quarter ended 2026-09-30. Compared with the same quarter a year earlier and with the analyst consensus before the report.

Quarter vs a year ago

	Q3 '26	Year ago	Change
Revenue	$5.66B	$5.42B	+4.6%
Gross margin	33.8%	33.9%	-0.1 pp
Operating income	$872M	$866M	+0.7%
Operating margin	15.4%	16.0%	-0.6 pp
Net income	$627M	$274M	+128.8%
Diluted EPS	$1.39	$0.56	+148.2%
Operating cash flow	$1B	$1.23B	-18.2%
Capex	$79M	$67M	+17.9%
Free cash flow	$925M	$1.16B	-20.3%
R&D	$0	$0	–
Stock-based compensation	$50M	$47M	+6.4%

Reported vs consensus

2026-10-29

	Actual	Consensus	vs consensus
Revenue	$5.66B	$5.64B	+0.3%
EPS (as estimated)	$1.49	$1.46	+2.1%

From the report of 2026-10-29 for Q3 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.

EPS vs consensus

last 8 reports

Revenue

Where the money comes from - by business line and by region, quarter by quarter.

Revenue, operating income and growth

quarterly

Revenue by business line

stacked, quarterly

Segment	Q3 '26	y/y	Share	TTM	TTM y/y
Financial Services	$1.77B	+12.0%	31.2%	$6.73B	+11.8%
Healthcare Segment	$1.59B	-1.1%	28.0%	$6.36B	+1.5%
Products and Resources	$1.37B	-0.9%	24.2%	$5.33B	+1.3%
Communication, Media and Technology	$939M	+10.5%	16.6%	$3.47B	+5.0%

Revenue by region

share of total

Segment	Q3 '26	y/y	Share	TTM	TTM y/y
North America	$4.26B	+5.7%	75.2%	$16.4B	+5.2%
Europe	$1.06B	+1.4%	18.7%	$4.14B	+5.3%
Other Regions	$349M	+1.2%	6.2%	$1.33B	+1.5%

Segment profits

Operating income per reported segment, read from the segment note of each 10-Q / 10-K (the profit split most data feeds leave out).

Segments in Q3 '26

Segment	Revenue	y/y	Operating income	y/y	Margin	Margin a year ago	TTM operating income
Financial Services	$1.77B	+12.0%	$283M	+6.8%	16.0%	16.8%	$1.29B
Health Sciences	$1.59B	-1.1%	$321M	+3.2%	20.2%	19.4%	$1.09B
Productsand Resources	$1.37B	-0.9%	$187M	+5.1%	13.6%	12.9%	$793M
Communications Media And Technology	$939M	+10.5%	$132M	+17.9%	14.1%	13.2%	–
Communications Mediaand Technology	–	–	–	–	–	–	–

Operating income by segment

quarterly

Segment operating margin

quarterly

Fourth quarters are derived: the 10-K reports the full year, minus the three quarters of the 10-Qs.

Margins & cost structure

How much of each unit of revenue is left at each level - and where the costs go.

Margins

quarterly

Costs as % of revenue

quarterly

Cash flow & capital allocation

Cash generated, what it is spent on, and what reaches shareholders.

Operating cash flow, capex, free cash flow

quarterly

Uses of cash vs operating cash flow

fiscal years

Last 4 quarters

cash flow statement

Operating cash flow: $2.69B
Capex: -$331M
Buybacks: -$2.22B
Dividends: -$616M
Acquisitions: -$1.31B
Net debt issued: $956M
Stock-based compensation: $123M
Free cash flow: $2.36B
Returned to shareholders / FCF: 119.8%

Share count and EPS

quarterly, diluted

Balance sheet

Liquidity, investments and debt at each quarter end.

Cash, investments and debt

quarter ends

Valuation & returns

Today's multiples against the company's own last five fiscal years; analyst targets and ratings.

Multiples and returns

TTM vs 5 fiscal years

	Now	5y average	Where today sits in the 5-year range
P/E (TTM)	11.9×	17.6×	12.9× – 21.9×
EV / EBITDA	7.2×	10.5×	8.0× – 13.7×
EV / Sales	1.4×	1.9×	1.5× – 2.5×
Price / FCF	12.3×	17.9×	13.2× – 21.1×
Price / Book	2.0×	2.9×	2.4× – 3.9×
FCF yield	8.1%	5.8%	4.7% – 7.5%
Return on invested capital	14.1%	13.8%	12.3% – 15.3%
Return on equity	17.4%	16.6%	14.9% – 18.6%

Analysts

Consensus target $65.75 (+1.0%)
range $51.00 – $82.00 · rating Buy

Strong buy0

Buy23

Hold23

Sell5

Strong sell0

Outlook

Analyst consensus for the coming fiscal years and what it implies at today's price.

Consensus estimates

Fiscal year	Revenue	Growth	EPS	Growth	P/E at today's price	Analysts (EPS)
FY2026	$22.1B	+4.8%	$5.77	+26.8%	11.3×	19
FY2027	$23B	+3.9%	$6.27	+8.7%	10.4×	19
FY2028	$24B	+4.4%	$6.78	+8.0%	9.6×	15
FY2029	$24.7B	+3.2%	$6.26	-7.6%	10.4×	9

Financial statements

Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.

Income statementRevenue, costs, operating income, net income and EPSOpen Balance sheetCash, investments, assets, debt, liabilities and equityOpen Cash flowOperating cash flow, capex, free cash flow, buybacks and dividendsOpen

Every reported line

All 239 figures Cognizant Technology Solutions Corporation tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).

Line (SEC label)	Latest quarter	Year ago	y/y	Latest FY	Prior FY	y/y
Accounts Payable, Current	$366M	$284M	+28.9%	$308M	$340M	-9.4%
Accounts Receivable, after Allowance for Credit Loss, Current	$4.85B	$4.39B	+10.5%	$4.44B	$4.06B	+9.4%
Accounts Receivable, Allowance for Credit Loss	$22M	$26M	-15.4%	$23M	$26M	-11.5%
Accounts Receivable, Allowance for Credit Loss, Writeoff	$4M	$7M	-42.9%	$14M	$18M	-22.2%
Accounts Receivable, Credit Loss Expense (Reversal)	$5M	$7M	-28.6%	$11M	$12M	-8.3%
Accrued Income Taxes, Current	$16M	$36M	-55.6%	$18M	$100M	-82.0%
Accrued Liabilities and Other Liabilities	$2.7B	$2.58B	+4.8%	$2.66B	$2.61B	+2.1%
Accrued Professional Fees, Current	$234M	$189M	+23.8%	$193M	$171M	+12.9%
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$3B2025-12-31	$2.79B	+7.5%	$3B	$2.79B	+7.5%
Accumulated Other Comprehensive Income (Loss), Net of Tax	-$204M	-$64M	-218.8%	-$160M	-$296M	+45.9%
Additional Paid in Capital	$11M	$14M	-21.4%	$12M	$13M	-7.7%
Amortization of Intangible Assets	–	–	–	$218M	$188M	+16.0%
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$50M	$47M	+6.4%	$181M	$175M	+3.4%
Assets	$21.3B	$20.1B	+5.9%	$20.7B	$20B	+3.6%
Assets, Current	$8.09B	$8.09B	0.0%	$7.82B	$7.5B	+4.2%
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	–	–	–	$384M2024-12-31	$130M	+195.4%
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation	–	–	–	$48M2024-12-31	–	–
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	$55M	–	–	$63M2024-12-31	$20M	+215.0%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	$12M	–	–	$33M2024-12-31	$12M	+175.0%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	$82M	–	–	$194M2024-12-31	$10M	+1,840.0%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	–	–	–	$101M2024-12-31	$27M	+274.1%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	$73M	–	–	–	–	–
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities	$74M	–	–	$37M2024-12-31	–	–
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	–	–	–	$45M2024-12-31	–	–
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	$1.4B	–	–	$1.79B2024-12-31	$428M	+318.5%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	–	–	–	$33M2023-12-31	$4M	+725.0%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	$13M	–	–	–	–	–
Capitalized Computer Software, Accumulated Amortization	$252M2025-12-31	$210M	+20.0%	$252M	$210M	+20.0%
Capitalized Computer Software, Amortization	–	–	–	$43M	$36M	+19.4%
Capitalized Computer Software, Gross	$377M2025-12-31	$338M	+11.5%	$377M	$338M	+11.5%
Capitalized Contract Cost, Amortization	$13M	$19M	-31.6%	-$78M	-$89M	+12.4%
Capitalized Contract Cost, Impairment Loss	$2M	$0	–	-$12M	-$2M	-500.0%
Capitalized Contract Cost, Net	$209M	$174M	+20.1%	$161M	$209M	-23.0%
Cash and Cash Equivalents, at Carrying Value	$1.52B	$2.34B	-35.3%	$1.9B	$2.23B	-14.8%
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	$2M	-$47M	+104.3%	-$47M	-$16M	-193.8%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$1.52B	$2.34B	-35.3%	$2.63B	$2.23B	+18.1%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	$477M	$545M	-12.5%	$403M	-$486M	+182.9%
Common Stock, Dividends, Per Share, Declared	$0.33	$0.31	+6.5%	$1.24	$1.20	+3.3%
Common Stock, Par or Stated Value Per Share	$0.01	$0.01	0.0%	$0.01	$0.01	0.0%
Common Stock, Shares Authorized	1B	1B	0.0%	1B	1B	0.0%
Common Stock, Shares, Issued	448M	483M	-7.2%	479M	495M	-3.2%
Common Stock, Shares, Outstanding	448M	483M	-7.2%	479M	495M	-3.2%
Common Stock, Value, Issued	$4M	$5M	-20.0%	$5M	$5M	0.0%
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$624M	$167M	+273.7%	$2.37B	$2.04B	+16.1%
Contract with Customer, Asset, before Allowance for Credit Loss	$690M	$517M	+33.5%	$466M	$386M	+20.7%
Contract with Customer, Asset, Increase (Decrease) for Contract Acquired in Business Combination	–	–	–	$02024-12-31	$9M	-100.0%
Contract with Customer, Asset, Reclassified to Receivable	$32M	$28M	+14.3%	-$371M	-$288M	-28.8%
Contract with Customer, Liability	$444M	$419M	+6.0%	$538M	$480M	+12.1%
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination	$02025-12-31	$0	–	$0	$12M	-100.0%
Contract with Customer, Liability, Revenue Recognized	$20M	$22M	-9.1%	-$416M	-$380M	-9.5%
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization	$3.75B	$3.58B	+4.7%	$14B	$13B	+8.0%
Current Federal Tax Expense (Benefit)	–	–	–	$216M	–	–
Current Federal, State and Local, Tax Expense (Benefit)	–	–	–	$426M2024-12-31	$522M	-18.4%
Current Foreign Tax Expense (Benefit)	–	–	–	$576M	$642M	-10.3%
Current Income Tax Expense (Benefit)	–	–	–	$931M	$1.07B	-12.8%
Current State and Local Tax Expense (Benefit)	–	–	–	$139M	–	–
Deferred Federal Income Tax Expense (Benefit)	–	–	–	$302M	–	–
Deferred Federal, State and Local, Tax Expense (Benefit)	–	–	–	-$229M2024-12-31	-$354M	+35.3%
Deferred Foreign Income Tax Expense (Benefit)	–	–	–	$21M	-$126M	+116.7%
Deferred Income Tax Assets, Net	$735M	$844M	-12.9%	$967M	$1.25B	-22.5%

Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.

Sources

Statements, segment revenue, metrics and estimates are standardised from the company's filings. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-09-30, 10-Q 2026-06-30, 10-Q 2026-03-31, 10-K 2025-12-31, 10-Q 2025-09-30, 10-Q 2025-06-30, 10-Q 2025-03-31, 10-K 2024-12-31, 10-Q 2024-09-30

Data as of 2026-11-02