# Cognizant (CTSH) Forecast Calculator

Interactive five-year financial forecast and DCF for Cognizant. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/cognizant/forecast
- Industry: Technology
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 16783000000 | 2107000000 | 2979000000 | 1842000000 |
| 2022 | 16652000000 | 2901000000 | 2673000000 | 1392000000 |
| 2023 | 18507000000 | 2216000000 | 3400000000 | 2137000000 |
| 2024 | 19428000000 | 2236000000 | 3537000000 | 2290000000 |
| 2025 | 19353000000 | 2013000000 | 3244000000 | 2126000000 |

## Frequently asked questions

### 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.