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Cognizant Technology Solutions Corporation

CTSH
59
Information Technology Services · Technology
Also trades as: 0QZ5.L
Price
$61.87
+0.95 (+1.56%)
Market Cap
$27.87B
Exchange
NASDAQ
Winston Score
59
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
Good

Share count falling — buybacks

8.7% over 4y

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

Diluted shares outstanding: 528.0M (2021) → 482.0M (2025)

Winston Score History

The full picture

Cognizant is a large technology services company that helps other businesses run and improve their computer systems, software, and digital operations. Its main customers are large companies in industries like banking, healthcare, insurance, and retail. Cognizant does things like build custom software, manage IT infrastructure, and help companies move their data to the cloud.

Cognizant makes money by charging clients for ongoing services, project-based work, and long-term outsourcing contracts. It operates globally but generates most of its revenue from clients in North America and Europe, while employing a large workforce primarily in India, which keeps its costs relatively low. With roughly $20 billion in annual revenue, its main competitive advantage is its deep industry expertise and large pool of skilled engineers, though it faces intense competition from rivals like Infosys, Wipro, and Accenture. A key risk is that clients may reduce outsourcing budgets during economic slowdowns or shift work to automation and artificial intelligence tools.

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Growth Profile

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

Revenue Growth

+4.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+3.8% 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 4% 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.

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Quality

Profit per sale
Gross Margin
33.4%
Modest — 33.4% gross margin
Profit after running costs
Operating Margin
15.9%
Healthy — 15.9% operating margin
Return on the money invested
ROCE
21.3%
Exceptional — 21.3% 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
0.11
Conservative — low debt load (0.11)
Covers its interest
Interest Cover
94.72x
Comfortably covers interest (94.7x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
13.3x
Attractive valuation — P/E 13.3

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
+4.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (13.3 → 8.8)

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Dividends

Dividend
Dividend Yield
2.32%
Moderate income — 2.32% yield

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

Dividend record
Dividend Growth
+5.7%
Dividend growing modestly (5.7% YoY)

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