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

$61.88+0.03(<0.01%)After hours

Market Cap

$28.60B

P/E

12.9x

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. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.

How this company scores

GoodMetricSide Score: 69/100

Strongest: Cash & Earnings Quality (21/25); weakest: Balance Sheet & Red Flags (14/25).

Profitability19/25

Growth15/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality21/25

Strengths

Strong marginsHigh ROELow leverageConsistent free cash flow

Valuation vs. 5-year range

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

P/E · 12.9x5y range 12.8x – 21.9x

Currently near its 20-quarter median.

P/S · 1.3x5y range 1.3x – 2.5x

Currently below its 20-quarter median.

P/B · 2.0x5y range 1.9x – 4.0x

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 188.8% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $28.60B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $21.64B
Q. Revenue: $5.48B
TTM EBITDA: $4.00B
TTM Op. Income: $3.44B
Q. Op. Income: $874.00M
TTM Net Income: $2.22B
Q. Net Income: $636.00M
EPS: $1.36
Shares Out.: $466.00M

$21.64B in TTM revenue grew 5.6% YoY, reaching $5.48B last quarter. TTM EBITDA of $4.00B and TTM operating income of $3.44B show growth is flowing through to the bottom line. TTM net income of $2.22B 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: 18.6%
Op. Margin: 15.9%
Net Margin: 11.6%

Op. margin of 15.9% is up 0.4% YoY — cost efficiency is improving. Net margin at 11.6% Over the past year, operating margin is up 2% — an improving trend.

Price Ratios

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

P/E Ratio: 12.9x
P/S Ratio: 1.3x
P/B Ratio: 2.0x

At 12.9x P/E, the stock trades below typical market levels. P/S of 1.3x and P/B of 2.0x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

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

Total Assets: $20.82B
Cash: $1.04B
Long-Term Debt: $1.53B
Book Value: $14.46B
D/E Ratio: 0.1
Debt/EBITDA: 1.5

With $20.82B in assets and $1.53B in long-term debt, D/E is 0.1and book value is $14.46B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 189% — a weakening trend.

Cash Flow

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

Op. Cash Flow: $558.00M
TTM Free Cash Flow: $2.60B
FCF Margin: 12.0%
FCF / Net Income: 1.2

TTM FCF of $2.60B on $558.00M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 14% — an improving trend.