Is Cognizant (CTSH) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 3.6% / 30% | 6.0% / 30% | 13.9% / 30% | 0.5% / 5% | ✓ HALAL |
| DJIM | 3.6% / 33% | 6.0% / 33% | 13.9% / 33% | 0.5% / 5% | ✓ HALAL |
| MSCI | 5.6% / 33% | 9.3% / 33% | 21.5% / 33% | 0.5% / 5% | ✓ HALAL |
| S&P | 3.6% / 33% | 6.0% / 33% | 13.9% / 33% | 0.5% / 5% | ✓ HALAL |
| FTSE | 5.6% / 33% | 9.3% / 33% | 21.5% / 50% | 0.5% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 33.7% | |
| Operating Margin | 16.0% | |
| Net Margin | 10.6% | |
| Return on Equity (ROE) | 15.2% | |
| Return on Assets (ROA) | 10.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.9B |
| Free Cash Flow | $2.6B |
| Total Debt | $1.2B |
| Debt-to-Equity | 7.8 |
| Current Ratio | 2.1 |
| Total Assets | $20.7B |
Price & Trading
| Last Close | $60.76 |
| 50-Day MA | $69.67 |
| 200-Day MA | $73.39 |
| Avg Volume | 6.6M |
| Beta | 1.0 |
|
52-Week Range
$58.84
| |
About Cognizant (CTSH)
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
Purification Calculator
As a halal stock with 0.50% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Cognizant (CTSH) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Cognizant is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Cognizant's debt ratio?
Cognizant's debt ratio is 3.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 5.6%.
Does Cognizant require dividend purification?
Yes, Cognizant has an impermissible income ratio of 0.50%, which means 0.50% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Cognizant's key financial metrics?
Cognizant has a market capitalization of $28.8B, trailing P/E ratio of 13.1, and revenue of $21.1B. The company maintains a gross margin of 33.7% and a net margin of 10.6%. Return on equity stands at 15.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.