Cognizant vs DXC Technology
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The short version
- Cognizant is the larger business, with $21.1B of revenue in fiscal 2025 against $12.6B for DXC Technology, about 1.7 times as much.
- Cognizant grew revenue faster (7.0%, against −1.8%).
- Cognizant kept more of each dollar of sales as operating profit (16.1% operating margin, against 7.7%).
- Cognizant turned more of its sales into free cash flow (12.3% FCF margin, against 8.2%).
- Cognizant earned a higher return on the capital invested in it (16.2%, against 9.2%).
- Investors pay more for each dollar of DXC Technology’s earnings: a P/E of 21.2x against 15.3x for Cognizant.
| Latest fiscal year | CTSH · FY25 | DXC · FY26 |
|---|---|---|
| Size | ||
| Market cap | $33.6B | $2.7B |
| Revenue | $21.1B | $12.6B |
| Free cash flow | $2.6B | $1.0B |
| Net income | $2.2B | $18.0M |
| Growth | ||
| Revenue growth | 7.0% | −1.8% |
| 5-year growth | 4.9% | −6.5% |
| Share count change | −1.6% | −3.4% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 16.1% | 7.7% |
| Net margin | 10.6% | 0.1% |
| FCF margin | 12.3% | 8.2% |
| Return on capital | 16.2% | 9.2% |
| Return on equity | 15.2% | 0.6% |
| Balance sheet | ||
| Net debt | −$1.3B | $1.8B |
| Net debt / EBITDA | −0.3x | 0.8x |
| Dividends and buybacks | $2.0B | $249M |
| Valuation & quality | ||
| P/E | 15.3x | 21.2x |
| Piotroski F-score | 6 | 7 |
Revenue
FY17
CTSH $14.8B
DXC $7.6B
FY18
CTSH $16.1B
DXC $21.7B
FY19
CTSH $16.8B
DXC $20.8B
FY20
CTSH $16.7B
DXC $19.6B
FY21
CTSH $18.5B
DXC $17.7B
FY22
CTSH $19.4B
DXC $16.3B
FY23
CTSH $19.4B
DXC $14.4B
FY24
CTSH $19.7B
DXC $13.7B
FY25
CTSH $21.1B
DXC $12.9B
FY26
CTSH —
DXC $12.6B
CTSH
DXC
Operating margin
FY17
CTSH 16.8%
DXC 8.1%
FY18
CTSH 17.4%
DXC 13.8%
FY19
CTSH 14.6%
DXC 15.8%
FY20
CTSH 12.7%
DXC 10.5%
FY21
CTSH 15.3%
DXC 6.2%
FY22
CTSH 15.3%
DXC 8.5%
FY23
CTSH 13.9%
DXC 7.9%
FY24
CTSH 14.7%
DXC 7.4%
FY25
CTSH 16.1%
DXC 7.9%
FY26
CTSH —
DXC 7.7%
CTSH
DXC
Free cash flow
FY17
CTSH $2.1B
DXC $373M
FY18
CTSH $2.2B
DXC $2.3B
FY19
CTSH $2.1B
DXC $1.5B
FY20
CTSH $2.9B
DXC $2.0B
FY21
CTSH $2.2B
DXC −$137M
FY22
CTSH $2.2B
DXC $1.2B
FY23
CTSH $2.0B
DXC $1.1B
FY24
CTSH $1.8B
DXC $1.2B
FY25
CTSH $2.6B
DXC $1.2B
FY26
CTSH —
DXC $1.0B
CTSH
DXC
Return on capital
FY17
CTSH 21.8%
DXC —
FY18
CTSH 29.9%
DXC 26.2%
FY19
CTSH 22.9%
DXC 14.8%
FY20
CTSH 16.3%
DXC 11.8%
FY21
CTSH 22.7%
DXC 5.7%
FY22
CTSH 22.0%
DXC 11.4%
FY23
CTSH 18.8%
DXC 12.8%
FY24
CTSH 18.0%
DXC 13.0%
FY25
CTSH 16.2%
DXC 11.1%
FY26
CTSH —
DXC 9.2%
CTSH
DXC
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.