COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CTSH · Technology · $21.4B mkt cap · FY2025 filings · Wide moat ·
Wonderful & reasonably priced
The five investor questions
2007–2025: revenue 2135577000.00 to 21108000000.00, increasing; diluted EPS 0.57 to 4.56, increasing.
Not enough years of gross-margin data to score pricing power.
Median ROIC 17.5%, above the 12% hurdle in 100% of years.
Net cash position — no leverage risk.
Owner earnings +4.8%/yr, share count shrinking (buybacks).
The pricingPower component abstained: Not enough years of gross-margin data to score pricing power. The other four 20% weights were renormalized over the scored 80%.
Price vs. owner-earnings value range
- Owner earnings (normalized)
- $2.5B
- Value range / share
- $57.64–$93.38
- Conservative high estimate / share
- $93.38
- Recent price
- $44.64
- Price vs. high estimate
- 52% below high estimate
Conservative range under moat-index@2.0.0: low end 11.1×, high end capped at 18×; 9% discount rate; high-end growth 4% (capped at 4%) using min(5y revenue CAGR, 5y diluted-EPS CAGR), clamped to 0%–4%; maintenance capex uses min(capex, D&A); abstain when D&A is unavailable. This is a disclosed model range, not intrinsic value as fact.
20 years of fundamentals
The business, in plain English
Across the filed record, revenue grew from $2.1B (FY2007) to $21.1B (FY2025) — about 13.6% a year compounded over 18 years.
It earned 16.1% on invested capital in FY2025, with a median of 19.6% across 19 filed years. The Returns on Capital filter above scores it 89/100.
The balance sheet carried $576.0M of total debt in FY2025 against $2.5B of owner earnings — roughly 0.2 years of owner earnings to retire it all. Balance-Sheet Safety scores it 100/100.
The share count rose 64.2% between FY2008 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 75/100.
This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.
Not disclosed in CTSH’s filings for these years — we don’t estimate it.
Gaps in a line mean that item isn’t in CTSH’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.
Moat Score history
Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars
- Methodology upgraded moat-index@1.2.0tomoat-index@2.0.0 — readings across versions aren’t comparedJul 20, 2026
Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.
Track record
How COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION’s moat rated in each of the years we can reconstruct from its filings — scored only on what was knowable at the time — and what its price and returns did afterward. The score never saw a price; the two are joined only in hindsight, for education, not as a signal.
How to read this: each dot is what the engine would have scored CTSH on that December 31; the line below is its total-return price path (dividends reinvested) in the years since.
Two tracks, one timeline: the score has its own 0–100 scale (top), the price its own 100-based scale (bottom) — never a shared axis. The price path is a total-return (dividends reinvested) index built from the same data the forward returns use; gaps in the score line are years with no reconstructed rating (see the table for why). The Table view carries every value.
What followed, in the years it rated Wide
In the 15 years CTSH rated Wide-moat (2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 and 2025), the median forward total return that followed — measured only after each year’s filings were public — was:
- 1 year 9% vs the S&P 500’s 16% (price basis) · median over 14 years
- 3 years 15% vs the S&P 500’s 34% (price basis) · median over 12 years
- 5 years 31% vs the S&P 500’s 82% (price basis) · median over 10 years
These are medians computed from the data, not a claim about any one year. The company figures are total returns (dividends reinvested); the S&P 500 is the price-only ^GSPC index, which excludes dividends and so understates the index — the gap flatters the company. A quality rating is not a return forecast, and past returns don’t predict future ones. Educational only, not investment advice.
Technology context
#19 of 745 scored Technology companies, ranked by Moat Score.
Nearest peers by Moat Score
- #17ANET Arista Networks, Inc.91.4 out of 100, Wide moatWide moat
- #18KFY KORN FERRY90.8 out of 100, Wide moatWide moat
- #20ROL ROLLINS INC90.2 out of 100, Wide moatWide moat
- #21INTU INTUIT INC.90.2 out of 100, Wide moatWide moat
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Common questions about CTSH
- Does COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION have an economic moat?
- Based on its FY2025 SEC filings, the Moat Index scores COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION (CTSH) 90.4 out of 100 — a Wide moat. The five questions behind that score begin at 20% each; if exactly one genuinely lacks data, the other four weights are renormalized and disclosed. revenue and EPS trend 98, pricing power not measurable from the filings, returns on capital 89, balance-sheet safety 100, capital discipline 75.
- Is CTSH trading below the conservative owner-earnings estimate?
- The owner-earnings value range is $57.64–$93.38 per share. It capitalizes normalized owner earnings at a 9% rate; the low end assumes 0% growth and the high end uses 4% growth, capped at 4% and 18×. Versus a recent price of $44.64, that is 52% below high estimate relative to the high estimate. This is a conservative educational estimate from primary SEC filings, not intrinsic value as a fact or investment advice.
- How has CTSH's Moat Score changed over time?
- The record logs 9 readings since Jul 17, 2026; the latest reads 90.4 out of 100 (wide moat). No tier changes on record yet. (A methodology upgrade on Jul 20, 2026 re-based the score; readings across engine versions aren't compared.) The history is append-only — readings are only ever added, never rewritten.