The market considers the company to be a mid-cap company with a significant market presence. At current multiples, it trades fairly valued—reflecting market expectations.

Valuation Metrics

Ratios and multiples

Forward P/E

11.13

EV/Revenue (TTM)1.52

Price/FCF (TTM)12.23

Financial Health

Liquidity and leverage

ROE (TTM)14.92%

ROA (TTM)10.74%

Debt/Equity (MRQ)0.14

The company's financial health appears strong. High ROE and strong ROA reflect reasonably efficient capital use. Debt is manageable within acceptable ranges.

Valuation Multiples

Current valuation metrics

P/E Ratio15.17

P/B Ratio2.20

P/S Ratio1.47

EV/EBITDA8.13

Quarterly Earnings History

Recent quarterly financial performance and trends

Latest Quarter

Q2 2026

Revenue

$5.48B

Net Income

$636.00M

EPS (Diluted)

$1.36

Quarter	Revenue	Net Income	Gross Profit	EPS (Basic)	EPS (Diluted)	Gross Margin	Net Margin
Q2 2026(Latest)	$5.48B	$636.00M	$1.83B	$1.36	$1.36	33.4%	11.6%
Q1 2026	$5.41B	$662.00M	$1.78B	$1.39	$1.39	32.8%	12.2%
Q4 2025	$5.33B	$648.00M	$1.80B	$1.35	$1.34	33.7%	12.2%
Q3 2025	$5.42B	$274.00M	$1.83B	$0.56	$0.56	33.9%	5.1%
Q2 2025	$5.25B	$645.00M	$1.77B	$1.31	$1.31	33.7%	12.3%

Key Insights:

Revenue increased by 1.3% from previous quarter
Net margin of 11.6% indicates moderate profitability
EPS declined by 2.2% quarter-over-quarter

Financial Efficiency

Utilization and collections performance

Asset Turnover 1.05 indicates high efficiency. Receivables Turnover 4.88 and DSO 74.87 reflect poor collections. Working Capital Turnover 5.20 is moderately efficient. ROIC 14.2% highlights moderate capital returns.

Efficiency Metrics

Asset Turnover1.05

Receivables Turnover4.88

Working Capital Turnover5.20

Days Sales Outstanding74.87

ROIC (TTM)14.2%

Profitability & Growth

Margins and earnings power

Revenue (TTM)

$21.64B

4.50% YoY

Profit Margin (TTM)

10.26%

Operating Margin (TTM)

17.48%

Gross Profit (TTM)

$7.24B

Gross Margin 33.44%

EBITDA (TTM)

$4.04B

EBITDA Margin 18.65%

Net Income (TTM)

$2.22B

Earnings 3.80% YoY

Efficiency Performance Matrix

4-quadrant analysis of operational efficiency vs profitability

Efficiency vs Profitability Quadrants

High Efficiency
High Margin

High Efficiency
Low Margin

Low Efficiency
High Margin

Low Efficiency
Low Margin

Efficiency Analysis

Asset Turnover

Efficiency:1.05x

Margin:33.4%

Quadrant:Optimal

Receivables Turnover

Efficiency:4.88x

Margin:17.5%

Quadrant:Margin-Driven

Working Capital

Efficiency:5.20x

Margin:10.3%

Quadrant:Optimal

Overall Efficiency Score

Strong operational efficiency with balanced profitability

⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.

• Bubble size represents ROIC magnitude

• Green (Optimal): Excellent efficiency-profitability balance

• Blue (Efficiency-Driven): High turnover, room to improve margins

• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency

• Red (Weak Operations): Areas needing improvement on both dimensions

Market Data & Share Structure

Comprehensive valuation metrics and ownership breakdown

Market Data & Capitalization

Market Cap

$31.77B

Large-cap: Established leader with stable trading

Enterprise Value

$32.82B

EV ≈ Market Cap: Balanced capital structure

Next Earnings Date

10/29/2026

Scheduled quarterly results announcement

Share Statistics & Ownership

Shares Outstanding

450.44M

Total shares issued and held by all shareholders

Shares Float

449.14M

100% float - widely available

Institutional Ownership

N/A

Held by funds, pensions, endowments

Insider Ownership

0.14%

Low alignment - professional management

Shares Short

33.06M

7.4% of float - elevated short interest

Implied Shares Outstanding

450.44M

Matches reported shares - consistent data

Profitability Margin Pyramid

Hierarchical view of margin compression from revenue to net income

Margin Hierarchy by Profitability Level

100.0%

Revenue

$21.64B

33.4%

Gross Profit

$7.24B

18.6%

EBITDA

$4.04B

10.3%

Net Income

$2.22B

Margin Profile:

Revenue— 100.0% margin (Top line revenue generation)

Gross Profit— 33.4% margin (Revenue minus cost of goods sold)

EBITDA— 18.6% margin (Earnings before interest, taxes, depreciation, and amortization)

Net Income— 10.3% margin (Bottom line profitability after all expenses)

Margin Analysis

Total Revenue

Amount:$21.64B

Margin:100.0%

Top line revenue generation

Gross Profit

Amount:$7.24B

Margin:33.4%

Revenue minus cost of goods sold

EBITDA

Amount:$4.04B

Margin:18.6%

Earnings before interest, taxes, depreciation, and amortization

Net Income

Amount:$2.22B

Margin:10.3%

Bottom line profitability after all expenses

Margin Quality Assessment

Good margin profile with healthy profit retention

• Larger circles represent higher dollar amounts

• Margin percentages show profitability at each level

• Blue: Revenue base

• Green: Gross profitability

• Yellow: Operating performance

• Red: Net profitability

Operating Cash & Liquidity

Core cash generation and short-term solvency

Cash Flow Analysis

Operating Cash Flow (TTM)

$2.92B

Cash from core operations

Free Cash Flow (TTM)

$2.60B

Available after capex

Financial Position & Liquidity

Current Ratio

2.18

Healthy

Quick Ratio

1.68

Strong

Net Cash

-$1.04B

Net debtor

Total Cash

$1.05B

Balance sheet cash

Total Debt

$2.09B

Outstanding borrowings

Cash Conversion Cycle

Working capital efficiency measurement

Days Sales Outstanding

74.9

days to collect payment

Insufficient cash cycle data.

Ownership & Shareholder Sentiment

Insider, institutional, and short interest positions

Insider Ownership

0.14%

Minimal stake

Short % of Float

7.35%

Notable short

Short Ratio (Days)

5.2d

days to cover

Ownership structure shows limited insider stake and mixed institutional participation.

Dividends & Shareholder Returns

Policy stance and implications

The company maintains a very sustainable dividend policy with a payout ratio of 27.5% (FCF coverage: 4.4x). Strong cash flow coverage supporting attractive shareholder yield with ample room for sustainability.

Payout Ratio

27.53%

Trailing Dividend Rate

1.3

Trailing Dividend Yield

1.84%

5 Year Avg Dividend Yield

1.61%

Forward Annual Dividend Rate

1.32

Forward Annual Dividend Yield

1.87%

Ex-Dividend Date

08/18/2026

Last Split

03/10/2014 (2.00)

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Cognizant Technology Solutions Corporation(CTSH)Fundamental Analysis & FinancialsNASDAQ

Valuation, growth, margins and balance sheet

Valuation Snapshot

Valuation Metrics

Financial Health

Valuation Multiples

Quarterly Earnings History

Financial Efficiency

Efficiency Metrics

Profitability & Growth

Efficiency Performance Matrix

Efficiency vs Profitability Quadrants

Efficiency Analysis

Asset Turnover

Receivables Turnover

Working Capital

Overall Efficiency Score

Market Data & Share Structure

Market Data & Capitalization

Share Statistics & Ownership

Profitability Margin Pyramid

Margin Hierarchy by Profitability Level

Margin Analysis

Total Revenue

Gross Profit

EBITDA

Net Income

Margin Quality Assessment

Operating Cash & Liquidity

Cash Flow Analysis

Financial Position & Liquidity

Cash Conversion Cycle

Ownership & Shareholder Sentiment

Dividends & Shareholder Returns

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Stock Analyzer Report

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Cognizant Technology Solutions Corporation(CTSH)Fundamental Analysis & Financials
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