Cognizant Technology Solutions Corporation
CTSH Technology Information Technology Services
Cognizant Technology Solutions Corporation’s revenue for fiscal 2025 (year ended December 2025) was $21.1 billion, up 6.95% from fiscal 2024. Member of the S&P 500; dividend growth for ten consecutive years; insiders bought in the last twelve months.
Follow CTSH
Cognizant Technology Solutions Corporation (CTSH) Altman Z-score
Cognizant Technology Solutions Corporation's Altman Z-score for fiscal 2025 is 7.11, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 7.11 | 0.26 |
| FY2024 | 6.85 | (0.31) |
| FY2023 | 7.16 | 1.07 |
| FY2022 | 6.09 | (1.44) |
| FY2021 | 7.54 | 0.66 |
| FY2020 | 6.88 | 0.03 |
| FY2019 | 6.84 | (1.23) |
| FY2018 | 8.08 | (0.45) |
| FY2017 | 8.53 | (0.27) |
| FY2016 | 8.80 | 0.08 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.20 | — | 0.24 | |
| Retained earnings / total assets | 0.73 | — | 1.03 | |
| EBIT / total assets | 0.16 | — | 0.54 | |
| Market value of equity / total liabilities | 7.13 | — | 4.28 | |
| Sales / total assets | 1.02 | — | 1.02 | |
| Altman Z-score | Safe zone | 7.11 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 7.58 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| INFY American Noble Gas Inc. compare | 8.6× |
| CTSH Cognizant Technology Solutions Corporation | 7.1× |
| WIT Wipro Limited compare | 4.4× |
| LDOS Leidos Holdings, Inc. compare | 4.1× |
| BR Broadridge Financial Solutions, Inc. compare | 3.6× |
| CACI CACI International, Inc. compare | 2.6× |
| CDW CDW Corporation compare | 2.5× |
| FISV Fiserv, Inc. compare | 1.4× |
| FIS Fidelity National Information Services, Inc. compare | 0.5× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on CTSH
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement