CTSH COGNIZANT TECHNOLOGY SOLUTIONS CORP

Overview and Growth

COGNIZANT TECHNOLOGY SOLUTIONS CORP generated $21.11B of revenue in fiscal 2025, with net income of $2.23B and an operating cash inflow of $2.88B. Revenue of $21.11B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 7.0% from $19.74B in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were $4.56, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $4.51 in fiscal 2024, the current result was 1.1% higher. Revenue equaled 1.02x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $7.12B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 33.7% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $3.39B, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 16.1%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $2.23B for the fiscal year. Net margin was 10.6%, meaning that this portion of revenue remained as net income after all recognized expenses. Income tax expense totaled $1.26B, providing the reported tax component that separates pretax and after-tax earnings. Return on period-end equity was 14.9%, relating annual net income to the equity capital on the balance sheet. Return on period-end assets was 10.8%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

Total assets were $20.69B, supported by $5.68B of liabilities and $15.02B of shareholder equity. Current assets were $7.82B against $3.66B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 2.14x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $1.90B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 52.0% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $576.00M of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.04x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 2.8%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 27.4%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 9.2%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 3.6% from $19.97B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $2.88B, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.29x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $288.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 10.0% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $2.60B, leaving a positive amount after capital expenditures. Free cash flow represented 12.3% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 12.5%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.