Cognizant vs DXC Technology
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KIRA’s take AI analyst
I put Cognizant and DXC Technology side by side, using each one’s latest annual report. Here is what stands out:
- 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 21.4x against 15.1x for Cognizant.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Cognizant
CTSH
8/10
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDA
DXC Technology
DXC
2/10
Piotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | CTSH FY25 | DXC FY26 |
|---|---|---|
| Size | ||
| Market cap | $33.1B | $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 | 15.1x | 21.4x |
| Piotroski F-score | 6 | 7 |
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.