The historical rank and industry rank for Cognizant Technology Solutions's Net Margin % or its related term are showing as below:
MEX:CTSH'
s Net Margin % Range Over the Past 10 Years
Min: 8.36 Med: 11.17 Max: 13.03
Current: 10.41
MEX:CTSH's Net Margin % is ranked better than 76.53% of 2825
companies
in the Software industry
Industry Median: 2.54
vs MEX:CTSH: 10.41
Cognizant Technology Solutions (MEX:CTSH) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Cognizant Technology Solutions Net Margin % Related Terms
Cognizant Technology Solutions Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:CTSH vs FISV, FIS, BR: Net Margin % Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cognizant Technology Solutions Net Margin % vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's Net Margin % distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cognizant Technology Solutions (MEX:CTSH) has a Net Margin % of 12.23% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Cognizant Technology Solutions and its competitors. This is near median its historical median of 11.17. Over the past decade, Cognizant Technology Solutions' Net Margin % has ranged from 8.36 to 13.03. According to the industry distribution chart, Cognizant Technology Solutions ranks #663 out of 2825 companies in the Software industry, placing it in the top 23.5%.
Is Cognizant Technology Solutions' Net Margin % too high?
Cognizant Technology Solutions' current Net Margin % of 12.23% is near median its 10-year median of 11.17. Over the past 10 years, this metric has ranged from a low of 8.36 to a high of 13.03. The Software industry median Net Margin % is 2.54. Cognizant Technology Solutions' value of 12.23% is 381.5% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #663 out of 2825 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cognizant Technology Solutions has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' Net Margin % compare to FISV and FIS?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #663 out of 2825 companies for Net Margin %. This places Cognizant Technology Solutions in the top 24% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Cognizant Technology Solutions' value of 12.23% is 381.5% above this benchmark. Historically, Cognizant Technology Solutions' own Net Margin % has ranged from 8.36 to 13.03 over the past decade. While the company's 10-year median is 11.17 vs. the industry median of 2.54, Cognizant Technology Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current Net Margin % of 12.23% is 381.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current Net Margin % is 12.23%, which is near median its own 10-year median of 11.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cognizant Technology Solutions stock overvalued right now?
Based on GuruFocus' analysis, Cognizant Technology Solutions (MEX:CTSH) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,477.03, compared to a current price of MXN722.03 — trading 51.1% below its estimated fair value. The current Net Margin % is 12.23%, which is near median its 10-year median of 11.17 and 381.5% above the Software industry median of 2.54. Cognizant Technology Solutions' overall GF Score™ is 66/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current Net Margin % is 12.23% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cognizant Technology Solutions (MEX:CTSH) Overvalued in 2026?
Based on GuruFocus' analysis, Cognizant Technology Solutions stock appears to be undervalued.
The current stock price of MXN722.03 is trading 51.1% below its estimated GF Value™ of MXN1,477.03.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
Net Margin %: 12.23% (near median its 10-year median of 11.17)
GF Value™: MXN1,477.03 vs. price of MXN722.03 (51.1% below fair value)
Industry Position: 381.5% above the Software median (#663 of 2825)
No single metric tells the full story. See the MEX:CTSH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cognizant Technology Solutions Business Description
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries. With most of its workforce located in India, Cognizant leverages a global delivery model that helps clients outsource their IT needs to offshore labor.
66GF Score
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