Cognizant vs DXC Technology: Revenue, Profit and Business Model
Cognizant reported $21.1B of revenue in FY2025 and $2.2B of net income. DXC Technology reported $12.6B of revenue in FY2026 and $18M of net income.
Latest financial snapshot
Cognizant
- Latest revenue
- $21.1B (FY2025)
- Net income
- $2.2B
- Net margin
- 10.6%
- Revenue growth
- +2.8% a year, FY2022–FY2025
DXC Technology
- Latest revenue
- $12.6B (FY2026)
- Net income
- $18M
- Net margin
- 0.1%
- Revenue growth
- +5.8% a year, FY2017–FY2026
Financial summary
Cognizant
Cognizant's revenue grew slowly from $19.43 billion in 2022 to $19.74 billion in 2024, then jumped 7% to $21.11 billion in 2025, helped by large deals and the Belcan acquisition. Net income was $2.23 billion in 2025, GAAP operating margin was 16.1%, and adjusted operating margin was 15.8%. Free cash flow reached $2.67 billion. The company returns most of that cash: it paid $610 million in dividends and bought back $1.3 billion of stock in 2025, and deployed $1.6 billion on buybacks in the first half of 2026 alone, while also spending $1.3 billion on acquisitions and drawing $1.0 billion on its revolving credit facility. For 2026 it guides to revenue of $22.04-$22.35 billion (4.0%-5.5% constant-currency growth), adjusted operating margin of 16.0%-16.2%, and adjusted EPS of $5.70-$5.82.
DXC Technology
DXC's revenue has shrunk every year since its first full fiscal year: from $21.73 billion in FY2018 to $14.43 billion in FY2023, $13.67 billion in FY2024, $12.87 billion in FY2025 and $12.64 billion in FY2026 (fiscal years end March 31). FY2026 revenue fell 4.8% on an organic basis, and net income dropped to $18 million from $389 million, hit by a fourth-quarter net loss of about $140 million. Q4 FY2026 revenue was $3.13 billion with adjusted EBIT of $237 million (7.6% margin). In Q1 FY2027 (quarter ended June 30, 2026), revenue was $3.00 billion, down 5.1% (6.7% organically), but diluted EPS was $0.73 and free cash flow reached $314 million, helped by $214 million from a litigation judgment. Bookings were $3.0 billion (book-to-bill 0.99x), and DXC bought back $70 million of stock. Management kept its full-year FY2027 guidance. The core tension is unchanged: GIS, its largest segment, fell 11.1% organically in Q1 FY2027 as clients shift legacy workloads to public cloud, while CES and insurance software are roughly flat to slightly growing.
Revenue and profit by year
Cognizant
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $21.1B | $2.2B | 10.6% | +7.0% | Source |
| FY2024 | $19.7B | — | 0.0% | +2.0% | Source |
| FY2023 | $19.4B | — | 0.0% | -0.4% | Source |
| FY2022 | $19.4B | — | 0.0% | — | Source |
DXC Technology
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $12.6B | $18M | 0.1% | -1.8% | Source |
| FY2025 | $12.9B | $389M | 3.0% | -5.8% | Source |
| FY2024 | $13.7B | $91M | 0.7% | -5.3% | Source |
| FY2023 | $14.4B | -$568M | -3.9% | -11.3% | Source |
| FY2022 | $16.3B | $718M | 4.4% | -8.3% | Source |
| FY2021 | $17.7B | -$149M | -0.8% | -9.4% | Source |
| FY2020 | $19.6B | -$5.4B | -27.4% | -5.7% | Source |
| FY2019 | $20.8B | $1.3B | 6.1% | -4.5% | Source |
| FY2018 | $21.7B | $1.8B | 8.1% | +185.7% | Source |
| FY2017 | $7.6B | -$123M | -1.6% | — | Source |
Where the revenue comes from
Cognizant
- Health Sciences
30.1% (2025)
Work for health plans, providers, and life-sciences companies, including TriZetto software and healthcare operations. $6.35 billion in 2025.
- Financial Services
29.2% (2025)
Technology and operations work for banks, insurers, and capital-markets firms. $6.17 billion in 2025; grew 12% in Q2 2026 to become the largest segment.
- Products and Resources
25.0% (2025)
Engineering, data, cloud, and operations work for manufacturing, retail, consumer goods, travel, energy, and utilities clients, including Belcan. $5.29 billion in 2025.
- Communications, Media and Technology
15.7% (2025)
Services for telecom, media, and technology companies. $3.30 billion in 2025.
DXC Technology
No segment breakdown is published.
Business model and strategy
Cognizant
How it makes money
Cognizant is a B2B services business organized into four industry segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. In 2025 Health Sciences ($6.35B) and Financial Services ($6.17B) were the two largest; by Q2 2026 Financial Services had become the largest at 31.6% of revenue after growing 12% year over year.
Growth strategy
Under CEO Ravi Kumar S, Cognizant's growth plan has four parts: win more large deals (seven deals of $100 million or more were signed in Q2 2026 alone), use AI to modernize clients' legacy applications, data, and infrastructure, deepen hyperscaler partnerships with Microsoft, Google Cloud, and AWS, and buy specialists.
Competitive advantage
Cognizant's clearest advantage is depth in regulated industries, especially U.S. healthcare and financial services. The 2014 TriZetto acquisition gave it core administration software used by many U.S. health plans, which pulls in implementation, hosting, and operations work and is costly for clients to replace.
DXC Technology
How it makes money
DXC operates a large, highly labor-intensive B2B IT Outsourcing and Consulting business model. The model is divided into two parts: Consulting & Engineering Services (CES) and Global Infrastructure Services (GIS). GIS is the legacy business: physically managing the data centers and laptops for a large corporation. CES is the 'growth' engine: consulting with clients on Analytics, Engineering, and Cloud migration.
Growth strategy
DXC's growth strategy is highly defensive, focused entirely on 'Cloud Migration' and stabilizing their revenue base. They cannot stop their clients from moving to the cloud, so their strategy is to be the premier consultant that actually executes the highly complex migration. They have formed large, strategic partnerships with AWS, Google Cloud, and Microsoft Azure.
Competitive advantage
DXC's absolute competitive advantage is its large, deeply entrenched relationships with the most risk-averse organizations on earth (like the US Department of Defense or large global banks). Switching IT providers for a large bank is a highly alarming, multi-year process with a large risk of catastrophic failure.
Questions about Cognizant vs DXC Technology
Which company has higher revenue — Cognizant Technology Solutions Corporation or DXC Technology?
Cognizant Technology Solutions Corporation reported $21.1B (FY2025), while DXC Technology reported $12.6B (FY2026). By last reported revenue, Cognizant Technology Solutions Corporation is the larger business, with DXC Technology reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Cognizant Technology Solutions Corporation vs DXC Technology?
Cognizant Technology Solutions Corporation's market capitalisation stands at $25.6B, while DXC Technology's is $1.7B. Cognizant Technology Solutions Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to DXC Technology.
Which is more financially efficient — Cognizant Technology Solutions Corporation or DXC Technology?
Cognizant Technology Solutions Corporation generates $59k / employee in revenue per employee, while DXC Technology generates $110k / employee. DXC Technology shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Cognizant Technology Solutions Corporation and DXC Technology make money?
Cognizant Technology Solutions Corporation and DXC Technology generate revenue in fundamentally different ways. Cognizant Technology Solutions Corporation: Cognizant is a B2B services business organized into four industry segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. DXC Technology: DXC operates a large, highly labor-intensive B2B IT Outsourcing and Consulting business model.
Which company is valued higher relative to revenue — Cognizant Technology Solutions Corporation or DXC Technology?
On a price-to-sales (P/S) basis, Cognizant Technology Solutions Corporation trades at 1.2x P/S and DXC Technology at 0.1x P/S. Cognizant Technology Solutions Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to DXC Technology. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Cognizant Technology Solutions Corporation bigger than DXC Technology?
By last reported revenue, Cognizant Technology Solutions Corporation ($21.1B (FY2025)) is the larger company compared to DXC Technology ($12.6B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Cognizant vs DXC Technology overview