Cognizant vs IBM
IBM is the larger business, with $67.53bn of revenue in fiscal 2025 against $21.11bn for Cognizant (3.2 times as much). IBM grew faster (7.6% against 7.0%). IBM kept more of each dollar of sales as profit: a net margin of 15.7% against 10.6%. Cognizant carries less debt relative to equity (3.8% against 207.3%).
| Latest fiscal year | CognizantCTSH, 2025 | IBMIBM, 2025 |
|---|---|---|
| Revenue | $21.11bn | $67.53bn |
| Revenue growth | 7.0% | 7.6% |
| Net income | $2.23bn | $10.59bn |
| Operating margin | 16.1% | — |
| Net margin | 10.6% | 15.7% |
| Return on equity | 15.2% | 35.3% |
| Free cash flow | $2.60bn | $12.10bn |
| Cash | $1.90bn | $13.59bn |
| Total debt | $576m | $67.68bn |
| Debt to equity | 3.8% | 207.3% |
| Dividend per share | $1.24 | $6.71 |
| Dividend yield | 2.1% | 2.6% |
| Share buybacks | $1.38bn | — |
| Employees | 351,600 | — |
| Market value | $28.54bn | $237.31bn |
| Price vs our value range | Below our value range | Within our value range |
| Moat score | 71 (Strong) | 56 (Moderate) |
| Insider trades, 12 months | 1 buys, 33 sales | 3 buys, 1 sales |