Cognizant Technology Solutions (CTSH) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Cognizant Technology Solutions

NasdaqGS•Technology•Information Technology Services

$65.11+2.59(0.04%)Market closed

Market Cap

$29.29B

P/E

11.4x

P/S

1.3x

P/B

2.0x

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. It also holds a strategic partnership with Travelport to build intelligent travel retail for the AI era. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.

How this company scores

GoodMetricSide Score: 72/100

Strongest: Profitability (22/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability22/25

Growth19/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality16/25

Strengths

Strong marginsHigh ROERising earningsLow leverage

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 11.4x5y range 8.1x – 18.4x

Currently below its 20-quarter median.

P/S · 1.3x5y range 0.8x – 2.1x

Currently below its 20-quarter median.

P/B · 2.0x5y range 1.2x – 3.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Watch

Debt-to-equity has risen 184.9% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $29.29B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $21.89B
Q. Revenue: $5.66B
TTM EBITDA: $4.01B
TTM Op. Income: $3.44B
Q. Op. Income: $872.00M
TTM Net Income: $2.57B
Q. Net Income: $627.00M
EPS: $1.39
Shares Out.: $450.00M

$21.89B in TTM revenue grew 5.0% YoY, reaching $5.66B last quarter. TTM EBITDA of $4.01B and TTM operating income of $3.44B show growth is flowing through to the bottom line. TTM net income of $2.57B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 18.0%
Op. Margin: 15.4%
Net Margin: 11.1%

Op. margin of 15.4% is down 0.6% YoY — costs are rising relative to revenue. Net margin at 11.1% Over the past year, operating margin is down 4% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 11.4x
P/S Ratio: 1.3x
P/B Ratio: 2.0x

At 11.4x P/E, the stock trades below typical market levels. P/S of 1.3x and P/B of 2.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 26% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $21.33B
Cash: $1.51B
Long-Term Debt: $1.55B
Book Value: $14.73B
D/E Ratio: 0.1
Debt/EBITDA: 1.5

With $21.33B in assets and $1.55B in long-term debt, D/E is 0.1and book value is $14.73B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 185% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $1.00B
TTM Free Cash Flow: $2.36B
FCF Margin: 10.8%
FCF / Net Income: 0.9

TTM FCF of $2.36B on $1.00B in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 11% — a weakening trend.