Cognizant vs Kyndryl
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KIRAβs take AI analyst
I put Cognizant and Kyndryl side by side, using each oneβs latest annual report. Here is what stands out:
- Cognizant is the larger business, with $21.1B of revenue in fiscal 2025 against $15.1B for Kyndryl.
- Cognizant grew revenue faster (7.0%, against 0.2%).
- Cognizant turned more of its sales into free cash flow (12.3% FCF margin, against 2.3%).
- Cognizant earned a higher return on the capital invested in it (16.2%, against 7.8%).
- Investors pay more for each dollar of Kyndrylβs earnings: a P/E of 38.3x against 14.4x for Cognizant.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Cognizant
CTSH
6/9
Revenue growth5-year growthNet marginFCF marginReturn on capitalNet debt / EBITDA
Kyndryl
KD
2/9
Return on equityShare count change
Side by side
Best in the row
| Latest fiscal year | CTSH FY25 | KD FY26 |
|---|---|---|
| Size | ||
| Market cap | $31.6B | $3.1B |
| Revenue | $21.1B | $15.1B |
| Free cash flow | $2.6B | $340M |
| Net income | $2.2B | $198M |
| Growth | ||
| Revenue growth | 7.0% | 0.2% |
| 5-year growth | 4.9% | β4.9% |
| Share count change | β1.6% | β2.2% |
| Profitability | ||
| Gross margin | β | 21.8% |
| Operating margin | 16.1% | β |
| Net margin | 10.6% | 1.3% |
| FCF margin | 12.3% | 2.3% |
| Return on capital | 16.2% | 7.8% |
| Return on equity | 15.2% | 16.5% |
| Balance sheet | ||
| Net debt | β$1.3B | $2.3B |
| Net debt / EBITDA | β0.3x | 1.8x |
| Dividends and buybacks | $2.0B | $304M |
| Valuation & quality | ||
| P/E | 14.4x | 38.3x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.