At a glance
Cognizant Technology Solutions Corp is worth $29.10B, about 14 times its fiscal 2025 earnings. Revenue grew 7.0% to $21.11B in fiscal 2025, with 10.6% kept as profit; over 5 years it has grown 4.9% a year. It pays a 2.0% dividend yield, raised every year for at least 6 years, and returned $8.11B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −8.8% over the past year with dividends reinvested and −2.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 40.6% in the 2020 crash (S&P 500: 33.7%) and 38.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 28 months after the lows.
The business in plain English
Cognizant is a large IT services and consulting firm. Big companies hire it to build and maintain software, move systems to the cloud, put AI to work, test and secure technology, and run back-office tasks such as health insurance claims processing. Teams work at client sites and in delivery centers, and most of its operations and technical staff are in India. It partners with Amazon Web Services, Microsoft, Google, Salesforce, SAP, ServiceNow and other technology firms.
Revenue comes from fees for this work. In fiscal 2025, revenue was $21.1 billion. Consulting and technology services brought in 64.1%. Outsourcing services, where Cognizant runs ongoing IT or business processes for a client, brought in 35.9%. Many contracts are short-term, and clients can cut spending quickly when the economy weakens.
The company is organized around client industries. Health Sciences (healthcare providers, health insurers, and drug, biotech and medical device makers) was the largest segment, at 30.1% of revenue. Financial Services (banks, payments firms and insurers) made up 29.2%. Products and Resources (manufacturers, automakers, retailers, and energy and travel companies) made up 25%. Communications, Media and Technology (telecom, media, education and technology companies) made up 15.6%. By region, North America supplied 74.8% of revenue, the UK 9.1%, the rest of Europe 9.9% and the rest of the world 6.2%.
Price history
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CTSH -8.8% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Consulting And Technology Services | $13.53B | 64.1% |
| Outsourcing Services | $7.58B | 35.9% |
By business segment
| Health Sciences | $6.35B | 30.1% |
| Financial Services | $6.17B | 29.2% |
| Products and Resources | $5.29B | 25% |
| Communications, Media and Technology | $3.30B | 15.6% |
By geography
| North America | $15.78B | 74.8% |
| Europe, excluding United Kingdom | $2.09B | 9.9% |
| United Kingdom | $1.92B | 9.1% |
| Rest of World | $1.32B | 6.2% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $5.66B, up 4.6% from a year earlier, and net income was $627.0M (+128.8%).
- For fiscal 2025, revenue was $21.11B (+7.0% year over year; +4.9% a year from FY2020 to FY2025) with a 10.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.9% watch |
|---|---|
| Operating margin | 16.1% good |
| Free cash flow margin | 12.3% good |
| Return on equity (FY2025) | 14.9% watch |
| Return on assets (FY2025) | 10.8% good |
| Net cash (cash minus debt) | $107.0M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $16.65B | $1.39B | $2.90B |
| FY2021 | $18.51B | $2.14B | $2.22B |
| FY2022 | $19.43B | $2.29B | $2.24B |
| FY2023 | $19.35B | $2.13B | $2.01B |
| FY2024 | $19.74B | $2.24B | $1.83B |
| FY2025 | $21.11B | $2.23B | $2.60B |
Valuation snapshot
| Market value | $29.10B |
|---|---|
| P/E ratio | 14.3 |
| Dividend yield | 2% |
Rank among 1514 US companies
Market value at each year end
Cognizant Technology Solutions Corp’s market value went from $33.99B at the end of 2016 to $29.10B on Nov 2, 2026, down 14%; since the end of 2025 it is down 27%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $29.10B | -27.4% |
| 2025 | $40.06B | +5.1% |
| 2024 | $38.13B | +0.7% |
| 2023 | $37.87B | +28.9% |
| 2022 | $29.39B | -36.9% |
| 2021 | $46.60B | +6.4% |
| 2020 | $43.81B | +29.0% |
| 2019 | $33.96B | -7.6% |
| 2018 | $36.76B | -12.2% |
| 2017 | $41.88B | +23.2% |
| 2016 | $33.99B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CTSH price data to Nov 2, 2026 | -20.2% | -8.8% | +2.6% | -2.1% | +3.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -20.2% |
| 2025 | +9.7% |
| 2024 | +3.5% |
| 2023 | +34.4% |
| 2022 | -34.5% |
| 2021 | +9.6% |
| 2020 | +34.0% |
| 2019 | -1.1% |
| 2018 | -9.7% |
| 2017 | +27.6% |
| 2016 | -6.7% |
| 2015 | +14.0% |
| 2014 | +4.3% |
| 2013 | +36.7% |
| 2012 | +14.9% |
| 2011 | -12.3% |
| 2010 | +61.7% |
| 2009 | +151.0% |
| 2008 | -46.8% |
| 2007 | -12.0% |
| 2006 | +53.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 57.4% over that stretch · deepest drop along the way 65.5%, back to its old high 11.5 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 39.6% over that stretch · deepest drop along the way 40.6%, back to its old high 5.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 35.9% over that stretch · deepest drop along the way 38.6%, back to its old high 28.1 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 4 sales ($184K), 4 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 2, 2026 | John Sunshin Kim CLO, CAO & Corporate Secretary | sell (plan) | $158K |
| Aug 31, 2026 | Alina Kerdman SVP, Controller & CAO | sell (plan) | $9K |
| Sep 14, 2026 | Alina Kerdman SVP, Controller & CAO | sell (plan) | $8K |
| Sep 30, 2026 | Alina Kerdman SVP, Controller & CAO | sell (plan) | $8K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 8.6% | Mar 31, 2025 |
| Vanguard Capital Management | 7.52% | Mar 31, 2026 |
| PZENA INVESTMENT MANAGEMENT LLC | 5.7% | Jun 30, 2026 |
| Vanguard Portfolio Management | 5.48% | Mar 31, 2026 |
ETFs with the most weight in CTSH
| STNC Hennessy Stance ESG ETF | 3.51% |
| MDPL Monarch Dividend Plus ETF | 3.48% |
| QQLV Invesco QQQ Low Volatility ETF | 3.3% |
| ARTY iShares Future AI & Tech ETF | 2.94% |
| KONG Formidable Fortress ETF | 2.44% |
| QTEC First Trust NASDAQ-100 Technology Sector Index Fund | 2.41% |
| VSMV VictoryShares US Multi-Factor Minimum Volatility ETF | 2.4% |
| BUSA Brandes U.S. Value ETF | 2.06% |
What could go wrong
- Keeping pace with AI and new competitors. Competition is intense and technology shifts fast as AI reshapes clients' businesses. Cognizant must keep its services current and attract skilled AI staff, while its own AI use carries legal and reputational risks.
- Heavy reliance on operations in India. A significant majority of Cognizant's operations and technical staff are in India. High inflation, wage growth, currency swings or the loss of tax incentives could raise costs and squeeze profit margins.
- Reliance on North America, finance and healthcare. In fiscal 2025, North America supplied 74.8% of revenue, Health Sciences 30.1% and Financial Services 29.2%. A slowdown, consolidation or tighter rules in those markets could reduce demand.
- Clients can cancel work on short notice. Many contracts are short-term. Clients can cut discretionary (optional) projects quickly when the economy or trade policy turns uncertain. That has hurt revenue before and can leave Cognizant with more staff than work.
- Political pushback against offshore outsourcing. Anti-outsourcing laws, if passed, or negative public views of sending work overseas could limit how Cognizant serves clients from its offshore delivery centers and hurt its business.
- Breaches of client or company data. Cognizant works inside clients' systems, including banks and healthcare firms. Failing to protect client or company data from a cyberattack could bring legal claims, financial losses and reputational harm.
Recent events
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement
- Shareholder vote results
- New debt or financial obligation
- Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
Cognizant has raised its dividend six years in a row through fiscal 2025. The dividend grew from $0.88 a share in fiscal 2020 to $1.24 in fiscal 2025, about 7.1% a year. That payout used 27.4% of earnings and 23.5% of free cash flow (cash left after running and investing in the business). The yield was 2% as of October 30, 2026. It spent more on buybacks (repurchasing its own stock): $5.24 billion over fiscal 2021–2025, versus $2.87 billion on dividends. The share count fell 14.8% between February 2022 and October 2026.
The shares fell 65.5% in the 2008 financial crisis and needed about 11.5 months from the low to recover. They lost 40.6% in the 2020 COVID crash and recovered in about six months. In the 2022 bear market they fell 38.6% and did not regain their peak until February 2025. They fell as much as 54.8% in the year to October 30, 2026. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Cognizant make money?
Cognizant charges large companies fees for IT consulting, technology and outsourcing work. In fiscal 2025, revenue was $21.1 billion. Consulting and technology services, such as building software and moving systems to the cloud, produced 64.1%. Outsourcing, where Cognizant runs ongoing IT or back-office work for a client, produced 35.9%. Healthcare and life sciences clients supplied 30.1% of revenue and financial firms 29.2%. Net income was $2.23 billion, a 10.6% net margin (the profit kept from each dollar of sales).
Does Cognizant raise its dividend every year?
Yes, so far. Cognizant has raised its dividend six years in a row through fiscal 2025. The dividend grew from $0.88 a share in fiscal 2020 to $1.24 in fiscal 2025, about 7.1% a year. The payout used 27.4% of earnings, which leaves a cushion. The yield was 2% as of October 30, 2026. Raises are not guaranteed: the 10-K warns the company may not be able to keep up its capital return strategy.
Is Cognizant still growing?
Yes, but slowly. Revenue rose 7% to $21.1 billion in fiscal 2025 and has grown about 4.9% a year since fiscal 2020. Net income slipped 0.4% to $2.23 billion. In the quarter ended September 30, 2026, revenue rose 4.6% from a year earlier to $5.66 billion, and net income more than doubled to $627 million. The 10-K notes that clients can cut spending quickly and with little warning when the economy weakens.
How much debt does Cognizant have?
Little, relative to its size. As of September 30, 2026, Cognizant held $1.66 billion in cash and investments against $1.55 billion of debt. That left about $107 million in net cash. Shareholders' equity, or assets minus liabilities, was $14.7 billion. The debt figure can change: Cognizant filed notices of new debt obligations on May 21 and October 6, 2026, and the October filing came after that balance sheet date.
How could AI affect Cognizant?
AI cuts both ways for Cognizant. The company calls itself an AI builder. It says clients are spending to modernize systems and adopt AI, partly to fend off AI-native rivals (newer firms built around AI). But its 10-K warns that its own use of AI may not succeed and could bring business, financial, legal and reputational risks. It also flags intense competition, fast technology change and the need to hire and keep staff with AI skills.