CTSHCOGNIZANT TECHNOLOGY SOLUTIONS CORP

Services-Computer Programming Services

Revenue: $21.1B; 7.0% YoY
Operating margin: 16.1%; 9.6% YoY
EBITDA: $3.9B; 15% YoY
Market cap: $29.2B
Employees: 351,600; $60K revenue each
Net debt / EBITDA: -0.2×; −$765M net debt
AI in 10-K: 22.1; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 1 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
129% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
69% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
38% of assets
Over 40% of assets
Shareholder dissentNo
93% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeYes
$60K · 3rd pct
Bottom quartile of its SIC industry
Quiet on AINo
22.1 per 10K words · 99th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.2× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$29.2B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$6M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$18.5B	$19.4B	$19.4B	$19.7B	$21.1B	7.0%
Operating income	$2.8B	$3.0B	$2.7B	$2.9B	$3.4B	17%
Net income	$2.1B	$2.3B	$2.1B	$2.2B	$2.2B	0.4%
Operating cash flow	$2.5B	$2.6B	$2.3B	$2.1B	$2.9B	36%
Capex	$279M	$332M	$317M	$297M	$288M	3.0%
Stock-based comp	$246M	$261M	$176M	$175M	$181M	3.4%
Buybacks	$771M	$1.4B	$1.1B	$605M	$1.4B	128%
Dividends	$509M	$564M	$591M	$600M	$610M	1.7%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $210K · 1
Open-market sells, 12 mo: $6M · 33
Net: −$6M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	109	196
FY2024	—	—	100	166
FY2023	—	—	96	133
FY2022	—	—	72	105
FY2021	—	—	110	129