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Cognizant CTSH Gross margin

Gross margin at other companies

International Business Machines logo
International Business MachinesIBM
58.4%+1.3pp
Accenture logo
AccentureACN
32%-0.1pp
TD SYNNEX logo
TD SYNNEXSNX
7.1%+0.4pp
Fidelity National Information Services logo
Fidelity National Information ServicesFIS
36.4%-0.7pp
Ciena logo
CienaCIEN
43%+1.1pp
Celestica logo
CelesticaCLS
12%+1.3pp

Other financials

Income statement

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Revenue$5.4B+5.8%
Gross profit$1.8B+3.3%
Operating income$843.0M-1.2%
Net income$662.0M-0.2%
EPS (diluted)$1.39+3.7%

Balance sheet

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Cash & equivalents$1.5B-24.0%
Total debt$1.1B-7.4%
Total equity$15.1B+1.1%
Total assets$20.5B+2.7%

Cash flow

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Operating cash flow$274.0M-31.5%
CapEx$76.0M-1.3%
Free cash flow$198.0M-38.7%

Valuation

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Market cap$23.09B-22.5%
Enterprise value$22.68B-21.9%
P/E10.4×-2.3×
P/S1.1×-0.4×

Profitability

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Operating margin15.8%+0.6pp
Net margin10.4%-1.3pp

Returns & leverage

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Return on equity14.9%-1.7pp
Debt / equity0.1×0.0×
Current ratio2.2×0.0×

Where this comes from

Calculated from Cognizant’s reported figures.

Based on trailing twelve months.

The official record: Cognizant’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Cognizant's gross margin?
Cognizant (CTSH) reported gross margin of 33.5% in Q1 2026.
How has Cognizant's gross margin changed year-over-year?
Cognizant's gross margin decreased by 2.2% year-over-year, from 34.3% to 33.5%.
What is the long-term trend for Cognizant's gross margin?
Over 4 years (2021 to 2025), Cognizant's gross margin has grown at a -2.1% compound annual growth rate (CAGR), from 148.3% to 136.2%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.