ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cognizant Technology Solutions's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN47,751 Mil.
Cognizant Technology Solutions's average Total Assets over the quarter that ended in Mar. 2026 was MXN371,122 Mil. Therefore, Cognizant Technology Solutions's annualized ROA % for the quarter that ended in Mar. 2026 was 12.87%.
The historical rank and industry rank for Cognizant Technology Solutions's ROA % or its related term are showing as below:
MEX:CTSH'
s ROA % Range Over the Past 10 Years
Min: 8.4 Med: 11.57 Max: 13.53
Current: 10.98
During the past 13 years, Cognizant Technology Solutions's highest ROA % was 13.53%. The lowest was 8.40%. And the median was 11.57%.
MEX:CTSH's ROA % is ranked better than 84.88% of 2883
companies
in the Software industry
Industry Median: 1.68
vs MEX:CTSH: 10.98
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Cognizant Technology Solutions ROA % Related Terms
Cognizant Technology Solutions ROA % 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.
For the Information Technology Services subindustry, Cognizant Technology Solutions's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's ROA % distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Cognizant Technology Solutions (MEX:CTSH) has a ROA % of 12.87% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cognizant Technology Solutions and its competitors. This is 11% above median its historical median of 11.57. Over the past decade, Cognizant Technology Solutions' ROA % has ranged from 8.40 to 13.53. According to the industry distribution chart, Cognizant Technology Solutions ranks #436 out of 2883 companies in the Software industry, placing it in the top 15.1%.
Is Cognizant Technology Solutions' ROA % too high?
Cognizant Technology Solutions' current ROA % of 12.87% is 11% above median its 10-year median of 11.57. Over the past 10 years, this metric has ranged from a low of 8.40 to a high of 13.53. The Software industry median ROA % is 1.68. Cognizant Technology Solutions' value of 12.87% is 666.1% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #436 out of 2883 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' ROA % compare to FISV and FIS?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #436 out of 2883 companies for ROA %. This places Cognizant Technology Solutions in the top 15% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. Cognizant Technology Solutions' value of 12.87% is 666.1% above this benchmark. Historically, Cognizant Technology Solutions' own ROA % has ranged from 8.40 to 13.53 over the past decade. While the company's 10-year median is 11.57 vs. the industry median of 1.68, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.68, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current ROA % of 12.87% is 666.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current ROA % is 12.87%, which is 11% above median its own 10-year median of 11.57. 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 ROA % is 12.87%, which is 11% above median its 10-year median of 11.57 and 666.1% above the Software industry median of 1.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current ROA % is 12.87% 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:
ROA %: 12.87% (11% above median its 10-year median of 11.57)
GF Value™: MXN1,477.03 vs. price of MXN722.03 (51.1% below fair value)
Industry Position: 666.1% above the Software median (#436 of 2883)
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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