COGNIZANT TECHNOLOGY SOLUTIONS CORP(CTSH)Stock Analysis
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Rank #470 of 2,879 stocksTOP 25%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
CTSH Stock Analysis & AI Quality Score
AI stock analysis and institutional research for COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH), a Technology sector company. 13F Pro's AI-powered ranking engine scores CTSH at 67.3/100 on a 32-signal composite quality model, placing it at rank #470 of 2,879 stocks — the top 25% of the AI-ranked universe. CTSH scores in the top quartile across revenue scale (93.1), balance sheet strength (88.2). Based on the latest XBRL financial filings (Q1 2026), COGNIZANT TECHNOLOGY SOLUTIONS CORP reports quarterly revenue of $5.4B, net income of $662.0M, an operating margin of 15.6%. Top institutional holders of CTSH by reported 13-F value include BlackRock,, VANGUARD CAPITAL MANAGEMENT, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. CTSH trades on the Nasdaq exchange and files with the SEC under CIK 1058290. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CTSH daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for COGNIZANT TECHNOLOGY SOLUTIONS CORP directly from SEC EDGAR. COGNIZANT TECHNOLOGY SOLUTIONS CORP's 13F Pro composite quality score has ranged between 8 and 70 since 2021, currently 67.3 — a stable long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving CTSH's Business? Latest 10-Q Breakdown
✓ 33/33 datapoints verifiedAI-extracted from COGNIZANT TECHNOLOGY SOLUTIONS CORP's 10-Q filed 2026-04-29 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Cognizant's Q1 2026 revenue grew 5.8% YoY to $5,413M on strong Financial Services and recent acquisition gains, while operating margin held flat at 15.6% despite third-party product sales headwinds.
Biggest Revenue Drivers
Total revenue: $5,413M+5.8% YoY
Benefited from ramp-up of recently won large deals, intuitive operations and automation services demand, and third-party product sales (250 bps contribution).
Negatively impacted by 300 bps due to lower third-party product sales, partially offset by continued life sciences services demand.
Growth driven by recently won large deals and AI/analytics services demand.
Growth driven by third-party product sales (1,000 bps contribution) and technology customer demand, offset by communications/media weakness.
Largest Expense Items
Increased as percentage of revenue driven by third-party product sales impact and increased compensation costs, partially offset by FX benefits.
Decreased as percentage of revenue due to operational efficiencies, partially offset by dilutive impact of 3Cloud acquisition.
Increase driven by amortization of intangible assets from 3Cloud acquisition completed January 1, 2026.
Margins: GAAP operating margin was 15.6% vs 16.7% prior year, primarily due to the absence of a $62M property sale gain; Adjusted Operating Margin improved 10 bps to 15.6%, with operational efficiencies and favorable FX offsetting third-party product dilution and compensation increases.
Watch Items from the Filing
- Project Leap restructuring expected to incur $230M–$320M in charges during 2026 ($200M–$270M severance; $30M–$50M other), with anticipated $200M–$300M in-year savings; execution and realization risks could impact results.
- India Defined Contribution Obligation accrual of $117M from 2019 remains uncertain; significant liability calculation variability exists due to period assessment, employee scope, and potential interest/penalties; no government enforcement for 7 years.
- Syntel litigation resolved with $298M award to Cognizant (post-trial ruling March 27, 2026 for compensatory damages, punitive damages, interest, and fees); judgment entry pending and Syntel appeal expected, so gain not yet recorded.
- India-Mauritius tax treaty amendment (signed March 2024) under evaluation; depending on final terms, could increase effective tax rate as CTS India is subsidiary of Mauritius entity.
- Voluntary Attrition – Tech Services was 12.3% (trailing twelve months ended March 31, 2026) vs 12.0% prior year; headcount at 357,600 vs 336,300 prior year, up 6.3%.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$5.4B
Net Income
Q1 2026
$662.0M
Free Cash Flow
Q1 2026
$198.0M
Operating Margin
Q1 2026
15.6%
D/E Ratio
Q1 2026
0.04
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+7.0% YoYNet Income
-0.4% YoYOperating Income
+17.2% YoYEPS (Diluted)
+1.1% YoYTotal Assets
+3.6% YoYTotal Debt
-36.6% YoYOp. Cash Flow
+35.7% YoY| Metric | FY 2025 | FY 2024 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|
| Revenue | $21.11B +7.0% | $19.74B +6.6% | $18.51B +11.1% | $16.65B -0.8% | $16.78B +4.1% | $16.13B |
| Net Income | $2.23B -0.4% | $2.24B +4.8% | $2.14B +53.5% | $1.39B -24.4% | $1.84B -12.3% | $2.10B |
| Operating Income | $3.39B +17.2% | $2.89B +2.3% | $2.83B +33.7% | $2.11B -13.8% | $2.45B -12.4% | $2.80B |
| EPS (Diluted) | $4.56 +1.1% | $4.51 +11.4% | $4.05 +57.6% | $2.57 -21.9% | $3.29 -8.6% | $3.60 |
| Total Assets | $20.69B +3.6% | $19.97B +11.8% | $17.85B +5.5% | $16.92B +4.4% | $16.20B +1.8% | $15.91B |
| Total Debt | $576.0M -36.6% | $908.0M +36.7% | $664.0M -5.3% | $701.0M -9.7% | $776.0M +2.2% | $759.0M |
| Operating Cash Flow | $2.88B +35.7% | $2.12B -14.9% | $2.50B -24.4% | $3.30B +32.0% | $2.50B -3.6% | $2.59B |
AI Insight: CTSH Financial Trends
Revenue grew 11.6% year-over-year to $5,413M in Q1 2026 while debt fell to a multi-quarter low of $568M, signaling steady top-line momentum and a strengthening balance sheet.
• Revenue expanded from $4,850M in Q2 2024 to $5,413M in Q1 2026, a consistent upward trajectory across seven consecutive quarters.
• Operating income rose from $708M in Q2 2024 to $843M in Q1 2026, with operating margin improving notably over the period.
• Total debt declined sharply from $1,216M in Q3 2024 to $568M in Q1 2026, reducing financial leverage meaningfully.
• Net income dropped sharply to $274M in Q3 2025 versus $663M in Q1 2025, though it rebounded to $662M in Q1 2026, suggesting a one-time charge.
⚠ Operating cash flow was only $274M in Q1 2026, well below the $1,227M posted in Q3 2025, suggesting volatile working-capital dynamics.
⚠ Equity dipped from $15,288M in Q2 2025 to $14,897M in Q3 2025 before partially recovering — monitor if buybacks or charges pressure book value further.
⚠ The Q3 2025 net income collapse to $274M warrants scrutiny; if non-recurring charges recur, reported earnings quality could deteriorate.
AI Insight: CTSH Ratio Trends
CTSH's Q3 2025 net profit margin collapsed to 5.1% from 12.3% the prior quarter — a clear one-off — while operating margins and ROIC remain structurally intact near 16% and 22%.
• Operating margin expanded from 14.6% in Q2 2024 to a range of 15.6–16.7% across 2025 quarters, signaling modest but consistent improvement.
• ROIC rose from 18.8% in Q3 2024 to 22.4% in Q3 2025, reflecting improving capital efficiency over the period.
• Net profit margin dropped sharply to 5.1% in Q3 2025 versus 12.3% in Q2 2025, then recovered to 12.2% in Q4 2025, suggesting a non-recurring charge.
• Leverage remains negligible with D/E stable at 0.04 across most quarters, briefly spiking to 0.08 in Q3 2024 before returning to baseline.
⚠ The Q3 2025 NPM collapse to 5.1% warrants scrutiny — nature and recurrence of the underlying charge has not been clarified by available data.
⚠ TTM NPM of 10.4% trails the Q1 2026 quarterly rate of 12.2%, reflecting Q3 2025 drag — monitor whether trailing metrics normalize over coming quarters.
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Top Institutional Holders of CTSH
BlackRock, Inc.
$2.7B44,337,166 shVANGUARD CAPITAL MANAGEMENT LLC
$1.9B31,078,283 shVANGUARD PORTFOLIO MANAGEMENT LLC
$1.6B26,158,845 shSTATE STREET CORP
$1.5B24,167,394 shPZENA INVESTMENT MANAGEMENT LLC
$1.2B20,262,362 shInvesco Ltd.
$1.1B18,091,755 shGEODE CAPITAL MANAGEMENT, LLC
$906.7M14,780,359 shDODGE & COX
$875.6M14,272,907 shMORGAN STANLEY
$814.0M13,267,490 shCapital Research Global Investors
$583.5M9,510,905 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $2.7B | 44,337,166 |
| VANGUARD CAPITAL MANAGEMENT LLC | $1.9B | 31,078,283 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $1.6B | 26,158,845 |
| STATE STREET CORP | $1.5B | 24,167,394 |
| PZENA INVESTMENT MANAGEMENT LLC | $1.2B | 20,262,362 |
| Invesco Ltd. | $1.1B | 18,091,755 |
| GEODE CAPITAL MANAGEMENT, LLC | $906.7M | 14,780,359 |
| DODGE & COX | $875.6M | 14,272,907 |
| MORGAN STANLEY | $814.0M | 13,267,490 |
| Capital Research Global Investors | $583.5M | 9,510,905 |
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Is CTSH a good stock to buy?
13F Pro's AI-powered analysis of COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for CTSH are available on the CTSH stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own CTSH?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling CTSH. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of COGNIZANT TECHNOLOGY SOLUTIONS CORP's investment landscape.