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Cognizant (CTSH) Financial Forecast Calculator

Interactive 5-year forecast and DCF for Cognizant. Adjust revenue growth, gross margin, capex intensity, WACC, and terminal growth - see revenue, free cash flow, and enterprise value update in real time. Seeded from Cognizant’s most recent SEC filings.

Revenue FY30
$23.13B
from $19.35B
FCF FY30
$3.17B
Margin 13.7%
Enterprise value
$44.16B
2.3× LTM revenue
Equity value
$45.48B
Net debt -$1.32B
Revenue & free cash flow - history and 5-year forecast
Line (area)
Bars
Historicals from SEC EDGAR (grey). Forecast years (color) update live as you move the sliders.

Assumptions

Revenue growth (annual)
3.6%
-10.0%baseline 3.6%40.0%
Gross margin
36.1%
5.0%baseline 36.1%90.0%
Capex % of revenue
1.9%
0.0%baseline 1.9%30.0%
WACC (discount rate)
9.00%
4.0%baseline 9.0%18.0%
Terminal growth
2.50%
0.0%baseline 2.5%5.0%

Need this as an Excel model?

Keep iterating on the Cognizant forecast in Excel. The downloadable sample has every assumption you see here plus a fully integrated income statement, balance sheet, cash flow, and debt schedule - five years of SEC historicals and live formulas in a fully editable workbook.

income_statement.xlsx
Income statement, brown brand palette
income_statement.xlsx
Income statement, green brand palette
income_statement.xlsx
Income statement, red brand palette

Frequently asked

What services does Cognizant provide to its clients?+

Cognizant is a multinational information technology services and consulting company that helps clients modernize technology, reimagine processes, and transform experiences. The company provides digital transformation, application development, systems integration, and managed services to large enterprises globally.

How does Cognizant generate its revenue across different sectors?+

Cognizant generates revenue primarily from four business segments: Health Sciences (approx. 30%), Financial Services (approx. 29%), Products and Resources (approx. 24%), and Communications, Media and Technology (approx. 17%). Its business model is asset-light and driven by a global network of highly skilled IT professionals.

What is Cognizant's capital expenditure strategy, and how asset-light is its business model?+

Cognizant's business model is very asset-light, with capital expenditure typically ranging from 1.2% to 1.8% of revenue. Capex is split roughly 60% towards maintenance and 40% towards growth, focusing on IT infrastructure and AI-ready facilities rather than physical real estate.

What are the key financial assumptions used in the Cognizant financial model?+

The financial model for Cognizant assumes a revenue growth rate of approximately 3.6% and a COGS as a percentage of revenue around 63.9%. Selling, General & Administrative expenses are modeled at about 18.0% of revenue, reflecting the company's operational cost structure.

How is net working capital typically structured for Cognizant, and why is it positive?+

Cognizant's net working capital as a percentage of revenue is typically positive, ranging from 10% to 15%. This is because the company requires working capital to fund payroll and other operational expenses before collecting receivables from its clients.

Where can I find a downloadable Excel financial model for Cognizant (CTSH)?+

A comprehensive three-statement forecast and discounted cash flow (DCF) valuation model for Cognizant (CTSH) is available for download. This model helps equity research analysts determine the intrinsic value and assess the financial impact of the company's strategic shifts.

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