CTSH vs IBM: Cognizant Technology Solutions and International Business Machines compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- International Business Machines is the larger company, worth $221.1B, about 7.7 times Cognizant Technology Solutions.
- Cognizant Technology Solutions grew revenue faster over the last year (+5.8% vs +1.1%).
- On earnings, Cognizant Technology Solutions is the cheaper stock (13.2x vs 20.8x).
- International Business Machines's price assumes faster free cash flow growth: about 4% a year, against -3% for Cognizant Technology Solutions (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | CTSH | IBM |
|---|---|---|
| Market cap | $28.7B | $221.1B |
| Share price | $59.20 | $227.13 |
| Revenue (last fiscal year) | $21.1B | $67.5B |
| Free cash flow (last fiscal year) | $2.6B | $12.1B |
| Revenue growth, last year | +5.8% | +1.1% |
| Revenue growth per year, last 5 fiscal years | +3.3% | +4.2% |
| Operating margin | 15.8% | — |
| Net margin | 10.4% | 15.5% |
| Return on equity | 14.8% | 31.1% |
| P/E (trailing) | 13.2x | 20.8x |
| Price / free cash flow | 11.1x | 19.1x |
| EV / EBITDA | 7.49x | 15.9x |
| FCF growth the price implies | -2.8% | 3.8% |
| Dividend yield | 2.2% | 2.9% |
| Debt / equity | 0.36x | 3.41x |
| Fundamental grade | C | C |
| Superinvestors holding it | 6 | 10 |
| Insider purchases, last 12 months | 10 | 10 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Cognizant Technology Solutions
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $18.5B | $2.2B | 15.3% |
| 2022 | $19.4B | $2.2B | 15.3% |
| 2023 | $19.4B | $2.0B | 13.9% |
| 2024 | $19.7B | $1.8B | 14.7% |
| 2025 | $21.1B | $2.6B | 16.1% |
International Business Machines
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $57.4B | $10.7B | — |
| 2022 | $60.5B | $9.1B | — |
| 2023 | $61.9B | $12.7B | — |
| 2024 | $62.8B | $12.4B | — |
| 2025 | $67.5B | $12.1B | — |
Where the revenue comes from
Cognizant Technology Solutions · by segments, 2025
International Business Machines · by segments, 2025
Questions
Which is bigger, Cognizant Technology Solutions or International Business Machines?
International Business Machines (IBM), at $221.1B against $28.7B.
Is CTSH or IBM cheaper?
By trailing P/E, Cognizant Technology Solutions (13.2x) is cheaper than International Business Machines (20.8x). A lower multiple can also mean the market expects less growth.
Which grows faster, CTSH or IBM?
Cognizant Technology Solutions: revenue grew +5.8% over the last year, against +1.1%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.