# Cognizant Technology Solutions (CTSH.US)

Canonical: https://gigainvestors.com/s/CTSH

Analysis as of: 2026-10-16T07:27:49.335Z. Financial observations: FY1998–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $65.77 per share; close as of 2026-10-15.

Estimated value: low $75.54 per share, central $97.31 per share, high $113.61 per share. Buy at or below the central value $97.31 per share. Valuation as of 2026-10-16T07:27:49.335Z; scenarios are not confidence intervals.

Expected annual return: 13.3% at the stated quote. About 13.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.17×

- FY2017: 0.17×

- FY2018: 0.17×

- FY2019: 0.15×

- FY2020: 0.13×

- FY2021: 0.15×

- FY2022: 0.15×

- FY2023: 0.14×

- FY2024: 0.15×

- FY2025: 0.17×

### moat: pass

- ROIC, median of available years: 37.0%

- ROIC, second-lowest year: 30.3%

- Typical minus recent gross margin: 2.6 pp

- Typical gross margin (annual median): 36.3%

- Recent gross margin (lower of latest and 3-year median): 33.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 21.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 38.8%

- FY2017: 42.6%

- FY2018: 50.3%

- FY2019: 34.3%

- FY2020: 29.0%

- FY2021: 40.3%

- FY2022: 40.0%

- FY2023: 35.1%

- FY2024: 32.7%

- FY2025: 30.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.12×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $12B

- Net income, five-year total: $11B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.8 pp

- Working capital / revenue, final three-year average: 18.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.14×

- FY2022: 1.10×

- FY2023: 1.11×

- FY2024: 1.11×

- FY2025: 1.12×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 42.6% vs 32.7%

- Per-share earnings: 2.55 to 4.51 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.2%

- Ordinary dilution, 5-year annual growth: -2.0%

- Market cap gain: $5.7B

- Cumulative retained earnings: $4.7B

- Diluted shares, 10-year annual growth: -2.2%

- Diluted shares, 5-year annual growth: -2.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.4%

- Per-share value change: $1.96

- Per-share value, starting three-year median: $2.55

- Per-share value, ending three-year median: $4.51

- Buybacks concentrated in cheaper years (correlation): -0.03

- Average buyback yield: 3.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $5.3B

- Cumulative net income, 10 years: $19B

- ROIC, first three-year median: 42.6%

- ROIC, last three-year median: 32.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.55

- FY2017: $2.53

- FY2018: $3.60

- FY2019: $3.29

- FY2020: $2.57

- FY2021: $4.05

- FY2022: $4.41

- FY2023: $4.21

- FY2024: $4.51

- FY2025: $4.56

### accounting: pass

- Sloan accruals: -3.2%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.57×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.5%

- FY2017: -5.9%

- FY2018: -3.1%

- FY2019: -4.1%

- FY2020: -11.3%

- FY2021: -2.0%

- FY2022: -1.6%

- FY2023: -1.1%

- FY2024: 0.6%

- FY2025: -3.2%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Bloomstran](https://gigainvestors.com/SA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 27% since Mar 2022 · "Cognizant forecasts weak quarterly revenue amid cautious client spending" (finance.yahoo.com, Jul 2026) · sales +7%

Story as of 2026-10-16T09:58:35.472Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.3% a year for ten years

- 2025-10-29: Cognizant raises annual adjusted profit forecast on strong client spending ([finance.yahoo.com](https://finance.yahoo.com/news/cognizant-raises-annual-adjusted-profit-133426869.html))

- 2025-11-13: Cognizant plans to acquire Microsoft Azure partner 3Cloud to enhance enterprise AI readiness ([seekingalpha.com](https://seekingalpha.com/news/4521647-cognizant-plans-to-acquire-microsoft-azure-partner-3cloud-to-enhance-enterprise-ai-readiness?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-12-17: Cognizant Stock Rallies on Strong AI Push, Expanding Clientele ([finance.yahoo.com](https://finance.yahoo.com/news/cognizant-stock-rallies-strong-ai-175900241.html))

- 2026-04-29: Cognizant forecasts quarterly revenue below estimates on cautious IT spending ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/cognizant-forecasts-quarterly-revenue-below-111223759.html))

- 2026-07-14: Cognizant Technology Solutions (CTSH) Is Up 6.7% After Broad AI Governance And Cybersecurity Push ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/cognizant-technology-solutions-ctsh-6-201146567.html))

- 2026-09-13: Cognizant CFO: AI Pressures IT Spending, but BFSI Growth Stays Strong ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/cognizant-cfo-ai-pressures-spending-170200251.html))

### Sales · FY2024–2025

sales +7%; source https://www.sec.gov/Archives/edgar/data/1058290/000105829026000008/ctsh-20251231.htm; observed 2026-02-12.

- FY2016: $13B 

- FY2017: $15B 

- FY2018: $16B 

- FY2019: $17B 

- FY2020: $17B 

- FY2021: $19B 

- FY2022: $19B 

- FY2023: $19B 

- FY2024: $20B 

- FY2025: $21B 

### Gross margin · FY2025

gross margin 33.7%; source https://www.sec.gov/Archives/edgar/data/1058290/000105829026000008/ctsh-20251231.htm; observed 2026-02-12.

- FY2016: 39.9% 

- FY2017: 38.2% 

- FY2018: 39.0% 

- FY2019: 36.6% 

- FY2020: 35.9% 

- FY2021: 37.3% 

- FY2022: 35.9% 

- FY2023: 34.6% 

- FY2024: 34.3% 

- FY2025: 33.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 21.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1058290/000105829026000008/ctsh-20251231.htm (filed 2026-02-12); FY2025: revenue 21108000000; grossProfit 7117000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CTSH.US: 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.

### Why customers stay

Margins ranged from 33.7% to 34.6% during 2023–25; it earns 37% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 34.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 34.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1058290/000105829026000008/ctsh-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 33.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.38824516601693687],[2017,0.4264013749338974],[2018,0.5033519871789772],[2019,0.34281298651638337],[2020,0.2901331263635632],[2021,0.40309397531174035],[2022,0.3996039659843468],[2023,0.3514434547997168],[2024,0.32669075380262486],[2025,0.30301849405548215]]; median 0.3698443104083268. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.4 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 0; upkeep 300000000; owner earnings 1632000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 0; upkeep 284000000; owner earnings 1663000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 0; upkeep 377000000; owner earnings 2222000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 0; upkeep 392000000; owner earnings 1976000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 0; upkeep 398000000; owner earnings 1553000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 0; upkeep 279000000; owner earnings 2432000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 0; upkeep 332000000; owner earnings 2527000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 317000000; owner earnings 2364000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 0; upkeep 297000000; owner earnings 2485000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1058290/000105829026000008/ctsh-20251231.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 288000000; owner earnings 2492000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,350000000],[2017,265000000],[2018,468000000],[2019,453000000],[2020,480000000],[2021,509000000],[2022,564000000],[2023,591000000],[2024,600000000],[2025,610000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1058290/000105829026000008/ctsh-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 1378000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CTSH.US SharesStats.PercentInsiders = 0.14400000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 0.3% yearly over ten years; actual growth was 6.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate -0.035763679718199354. Price 65.77; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.741924959216966 → FY2025 5.0961145194274025. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $51.35 per share

- 2016-11: $55.08 per share

- 2016-12: $56.03 per share

- 2017-01: $52.59 per share

- 2017-02: $59.27 per share

- 2017-03: $59.52 per share

- 2017-04: $60.23 per share

- 2017-05: $66.91 per share

- 2017-06: $66.40 per share

- 2017-07: $69.32 per share

- 2017-08: $70.77 per share

- 2017-09: $72.54 per share

- 2017-10: $75.67 per share

- 2017-11: $72.28 per share

- 2017-12: $71.02 per share

- 2018-01: $77.98 per share

- 2018-02: $82.02 per share

- 2018-03: $80.50 per share

- 2018-04: $81.82 per share

- 2018-05: $75.35 per share

- 2018-06: $78.99 per share

- 2018-07: $81.50 per share

- 2018-08: $78.43 per share

- 2018-09: $77.15 per share

- 2018-10: $69.03 per share

- 2018-11: $71.23 per share

- 2018-12: $63.48 per share

- 2019-01: $69.68 per share

- 2019-02: $70.98 per share

- 2019-03: $72.45 per share

- 2019-04: $72.96 per share

- 2019-05: $61.93 per share

- 2019-06: $63.39 per share

- 2019-07: $65.14 per share

- 2019-08: $61.39 per share

- 2019-09: $60.27 per share

- 2019-10: $60.94 per share

- 2019-11: $64.11 per share

- 2019-12: $62.02 per share

- 2020-01: $61.38 per share

- 2020-02: $60.93 per share

- 2020-03: $46.47 per share

- 2020-04: $58.02 per share

- 2020-05: $53.00 per share

- 2020-06: $56.82 per share

- 2020-07: $68.32 per share

- 2020-08: $66.86 per share

- 2020-09: $69.42 per share

- 2020-10: $71.42 per share

- 2020-11: $78.13 per share

- 2020-12: $81.95 per share

- 2021-01: $77.95 per share

- 2021-02: $73.48 per share

- 2021-03: $78.12 per share

- 2021-04: $80.40 per share

- 2021-05: $71.56 per share

- 2021-06: $69.26 per share

- 2021-07: $73.53 per share

- 2021-08: $76.31 per share

- 2021-09: $74.21 per share

- 2021-10: $78.09 per share

- 2021-11: $77.98 per share

- 2021-12: $88.72 per share

- 2022-01: $85.42 per share

- 2022-02: $86.13 per share

- 2022-03: $89.67 per share

- 2022-04: $80.90 per share

- 2022-05: $74.70 per share

- 2022-06: $67.49 per share

- 2022-07: $67.96 per share

- 2022-08: $63.17 per share

- 2022-09: $57.44 per share

- 2022-10: $62.25 per share

- 2022-11: $62.21 per share

- 2022-12: $57.19 per share

- 2023-01: $66.75 per share

- 2023-02: $62.63 per share

- 2023-03: $60.93 per share

- 2023-04: $59.71 per share

- 2023-05: $62.49 per share

- 2023-06: $65.28 per share

- 2023-07: $66.03 per share

- 2023-08: $71.61 per share

- 2023-09: $67.74 per share

- 2023-10: $64.47 per share

- 2023-11: $70.38 per share

- 2023-12: $75.53 per share

- 2024-01: $77.12 per share

- 2024-02: $79.02 per share

- 2024-03: $73.29 per share

- 2024-04: $65.68 per share

- 2024-05: $66.15 per share

- 2024-06: $68.00 per share

- 2024-07: $75.68 per share

- 2024-08: $77.77 per share

- 2024-09: $77.18 per share

- 2024-10: $74.59 per share

- 2024-11: $80.49 per share

- 2024-12: $76.90 per share

- 2025-01: $82.61 per share

- 2025-02: $83.33 per share

- 2025-03: $76.50 per share

- 2025-04: $73.57 per share

- 2025-05: $80.99 per share

- 2025-06: $78.03 per share

- 2025-07: $71.76 per share

- 2025-08: $72.25 per share

- 2025-09: $67.07 per share

- 2025-10: $72.88 per share

- 2025-11: $77.71 per share

- 2025-12: $83.00 per share

- 2026-01: $82.06 per share

- 2026-02: $64.43 per share

- 2026-03: $61.35 per share

- 2026-04: $52.90 per share

- 2026-05: $55.76 per share

- 2026-06: $38.73 per share

- 2026-07: $55.35 per share

- 2026-08: $64.58 per share

- 2026-09: $57.44 per share

- 2026-10: $65.77 per share

## Annual estimated value (USD per share)

- FY2016: low $52.63 per share, central $73.10 per share, high $84.51 per share

- FY2017: low $56.93 per share, central $79.37 per share, high $91.89 per share

- FY2018: low $61.45 per share, central $86.35 per share, high $100.24 per share

- FY2019: low $58.17 per share, central $82.33 per share, high $95.81 per share

- FY2020: low $49.45 per share, central $63.03 per share, high $72.97 per share

- FY2021: low $64.37 per share, central $91.87 per share, high $107.20 per share

- FY2022: low $72.96 per share, central $102.00 per share, high $119.06 per share

- FY2023: low $67.74 per share, central $90.40 per share, high $105.19 per share

- FY2024: low $70.06 per share, central $92.10 per share, high $107.23 per share

- FY2025: low $73.08 per share, central $93.62 per share, high $109.00 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1058290/000105829026000008/ctsh-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.