Cognizant Technology Solutions Corporation

COZ.DE

Information Technology Services · Technology

Price

€53.05

+0.89 (+1.71%)

Market Cap

€23.90B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Strong

Dividends

Mixed

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Share count falling — buybacks

−7.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 528.0M (2021) → 489.0M (2025)

Winston Score History

The full picture

Cognizant is a technology services company that helps large businesses run and improve their computer systems, software, and digital operations. Its main customers are companies in banking, healthcare, insurance, and retail that need outside experts to manage IT work, build software, or modernize old systems. Cognizant is one of the largest IT services firms in the world, competing directly with companies like Infosys, Wipro, and Tata Consultancy Services.

Cognizant makes money by charging clients fees for ongoing services, project-based work, and consulting engagements — not by selling physical products. Most of its revenue comes from North America and Europe, and it employs roughly 300,000 people, with a large portion of its workforce based in India, which keeps labor costs relatively low. The company's main growth driver is demand for AI integration and cloud migration services, but its main risk is intense price competition from other large Indian-heritage IT firms that offer similar services.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+4.6% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

0.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.2B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Cognizant Technology Solutions Corporation is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

30.0%

Modest — 30.0% gross margin

Profit after running costs

Operating Margin

16.8%

Healthy — 16.8% operating margin

Return on the money invested

ROCE

21.5%

Exceptional — 21.5% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+5.6%

Slow sales growth (+5.6% YoY)

Profit growth

EPS YoY

-5.3%

Earnings shrinking (-5.3% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

131%

Turns 131% of profit into real cash

Spare cash per sale

FCF Margin

12.0%

Converts sales into free cash efficiently (12.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.12

Conservative — low debt load (0.12)

Covers its interest

Interest Cover

96.50x

Comfortably covers interest (96.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

11.4x

Attractive valuation — P/E 11.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+1.1

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

2.13%

Moderate income — 2.13% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

-0.8%

Dividend cut (-0.8% YoY) — warning sign

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