CluenexCognizant Technology Solutions Corporation CTSH
Cognizant Technology Solutions Corporation scores good on business quality (6.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Cognizant Technology Solutions Corporation does
Cognizant provides IT, consulting, and outsourcing services to global enterprises, generating $21.6B in revenue by modernizing core tech infrastructure. The firm is navigating a push toward digital transformation services to capture durable growth.
- What it does best
Cognizant converts business into cash, printing $2.6B in free cash flow with an interest coverage of 95x. This financial cushion allows massive buybacks of $2.4B, easily outpacing peers like IBM's 19% FCF margin with lower leverage.
- The main risk
Sluggish revenue growth in the bottom quartile of its sector rank of 29 threatens market share if digital transformation projects stall against aggressive IT consultancies.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 15.9% with a gross margin of 33.4%, yielding a modest profitability score as scale benefits face margin pressures.
Switching costs anchor its enterprise IT contracts, supported by a 7.2 moat score that reflects sticky client relationships despite low gross margins.
Revenue grew to $21.6B, up from $19.7B in the prior year, though sector-wide percentiles place its growth ranking in the lower quartile at 29th.
Debt-to-equity of 0.04 and net cash of $1.3B back strong cash generation, leaving the balance sheet exceptionally strong.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on CTSH
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Cognizant Technology Solutions Corporation scores good on the Cluenex quality check (6.2 of 10), measured against its own industry. Profitability is weak, moat strong, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026, after the close.
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Cite this page: Cluenex, “Cognizant Technology Solutions Corporation (CTSH)”, https://cluenex.com/stocks/ctsh/, data as of Oct 10, 2026.