Cognizant vs Kyndryl
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The short version
- 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 Kyndryl’s earnings: a P/E of 39.9x against 15.3x for Cognizant.
| Latest fiscal year | CTSH · FY25 | KD · FY26 |
|---|---|---|
| Size | ||
| Market cap | $33.6B | $3.3B |
| 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% | −4.9% |
| Share count change | −1.6% | −2.2% |
| Profitability | ||
| Gross margin | — | 21.8% |
| Operating margin | 16.1% | — |
| 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 | −$1.3B | $2.3B |
| Net debt / EBITDA | −0.3x | 1.8x |
| Dividends and buybacks | $2.0B | $304M |
| Valuation & quality | ||
| P/E | 15.3x | 39.9x |
| Piotroski F-score | 6 | 6 |
Revenue
FY17
CTSH $14.8B
KD —
FY18
CTSH $16.1B
KD —
FY19
CTSH $16.8B
KD $20.3B
FY20
CTSH $16.7B
KD $19.4B
FY21
CTSH $18.5B
KD $18.7B
FY22
CTSH $19.4B
KD —
FY23
CTSH $19.4B
KD $17.0B
FY24
CTSH $19.7B
KD $16.1B
FY25
CTSH $21.1B
KD $15.1B
FY26
CTSH —
KD $15.1B
CTSH
KD
Operating margin
FY17
CTSH 16.8%
KD —
FY18
CTSH 17.4%
KD —
FY19
CTSH 14.6%
KD —
FY20
CTSH 12.7%
KD —
FY21
CTSH 15.3%
KD —
FY22
CTSH 15.3%
KD —
FY23
CTSH 13.9%
KD —
FY24
CTSH 14.7%
KD —
FY25
CTSH 16.1%
KD —
FY26
CTSH —
KD —
CTSH
KD
Free cash flow
FY17
CTSH $2.1B
KD —
FY18
CTSH $2.2B
KD —
FY19
CTSH $2.1B
KD −$56.0M
FY20
CTSH $2.9B
KD −$408M
FY21
CTSH $2.2B
KD −$871M
FY22
CTSH $2.2B
KD —
FY23
CTSH $2.0B
KD −$84.0M
FY24
CTSH $1.8B
KD −$197M
FY25
CTSH $2.6B
KD $337M
FY26
CTSH —
KD $340M
CTSH
KD
Return on capital
FY17
CTSH 21.8%
KD —
FY18
CTSH 29.9%
KD —
FY19
CTSH 22.9%
KD —
FY20
CTSH 16.3%
KD —
FY21
CTSH 22.7%
KD −31.8%
FY22
CTSH 22.0%
KD —
FY23
CTSH 18.8%
KD —
FY24
CTSH 18.0%
KD −1.2%
FY25
CTSH 16.2%
KD 10.6%
FY26
CTSH —
KD 7.8%
CTSH
KD
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.