Home > Comparison > Technology > CTSH vs CRWD
The strategic rivalry between Cognizant Technology Solutions Corporation and CrowdStrike Holdings, Inc. shapes the evolution of the technology sector. Cognizant operates as a capital-intensive IT services powerhouse, delivering consulting and outsourcing globally. CrowdStrike, by contrast, is a high-growth software infrastructure provider specializing in cloud-delivered cybersecurity solutions. This analysis will assess which company’s operational model offers superior risk-adjusted returns for a diversified portfolio amid accelerating digital transformation.
Table of contents
Companies Overview
Cognizant Technology Solutions and CrowdStrike Holdings anchor key segments in the evolving technology landscape.
Cognizant Technology Solutions Corporation: Global IT Services Powerhouse
Cognizant stands as a leading professional services firm in Information Technology Services. It generates revenue through consulting, technology solutions, and outsourcing across Financial Services, Healthcare, Products, and Communications sectors. In 2026, it focuses on enhancing customer experience with AI, automation, and digital health innovations, driving operational efficiency for global enterprises.
CrowdStrike Holdings, Inc.: Cloud-Native Cybersecurity Leader
CrowdStrike dominates the Software-Infrastructure space by delivering cloud-based endpoint and cloud workload protection. Its core revenue derives from subscriptions to its Falcon platform, emphasizing threat intelligence and Zero Trust security. The company prioritizes expanding its direct sales and channel partner networks to capture growing demand for cybersecurity worldwide.
Strategic Collision: Similarities & Divergences
Cognizant embraces a broad IT services model with diversified industry exposure, while CrowdStrike pursues a focused, cloud-first cybersecurity strategy. Their competition centers on enterprise digital transformation and security solutions. Cognizant offers scale and service breadth; CrowdStrike provides cutting-edge security innovation. Their distinct profiles reflect different risk and growth dynamics in technology investing.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Cognizant Technology Solutions Corporation (CTSH) | CrowdStrike Holdings, Inc. (CRWD) |
|---|---|---|
| Revenue | 21.1B | 3.95B |
| Cost of Revenue | 14.0B | 991M |
| Operating Expenses | 3.59B | 3.08B |
| Gross Profit | 7.12B | 2.96B |
| EBITDA | 4.17B | 295M |
| EBIT | 3.62B | 81M |
| Interest Expense | 37M | 26M |
| Net Income | 2.23B | -19M |
| EPS | 4.56 | -0.08 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals the true efficiency and momentum driving each company’s profitability and growth trajectory.
Cognizant Technology Solutions Corporation Analysis
Cognizant’s revenue rose steadily from 18.5B in 2021 to 21.1B in 2025, reflecting solid expansion. Net income grew modestly to 2.23B in 2025, despite a slight net margin dip to 10.56%. The gross margin remains healthy at 33.7%, and EBIT margin improved to 17.2%, signaling strong operational control and margin resilience.
CrowdStrike Holdings, Inc. Analysis
CrowdStrike’s revenue surged dramatically from 874M in 2021 to nearly 4B in 2025. However, net income stayed negative at -19M in 2025, with a weak net margin of -0.49%. Gross margin stands exceptionally high at 74.9%, but EBIT margin at 2.0% shows profitability challenges amid rapid scaling and elevated operating expenses.
Margin Strength vs. Growth Intensity
Cognizant delivers consistent profits with robust margins, showcasing operational efficiency and stable bottom-line growth. CrowdStrike excels in top-line expansion and gross margin but struggles to convert scale into positive net income. Investors seeking steady profitability may favor Cognizant’s profile, while those prioritizing growth potential must weigh CrowdStrike’s ongoing margin pressures.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of these two companies:
| Ratios | Cognizant Technology Solutions Corporation (CTSH) | CrowdStrike Holdings, Inc. (CRWD) |
|---|---|---|
| ROE | 14.85% | -0.59% |
| ROIC | 12.31% | 0.70% |
| P/E | 17.90 | -5055.66 |
| P/B | 2.66 | 29.71 |
| Current Ratio | 2.34 | 1.67 |
| Quick Ratio | 2.34 | 1.67 |
| D/E (Debt-to-Equity) | 0.10 | 0.24 |
| Debt-to-Assets | 7.61% | 9.07% |
| Interest Coverage | 95.38 | -4.58 |
| Asset Turnover | 1.02 | 0.45 |
| Fixed Asset Turnover | 14.02 | 4.76 |
| Payout ratio | 27.35% | 0% |
| Dividend yield | 1.53% | 0% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as a company’s DNA, revealing hidden risks and operational excellence that guide investor decisions with clarity and precision.
Cognizant Technology Solutions Corporation
Cognizant shows solid profitability with a 14.85% ROE and a net margin of 10.56%, indicating operational efficiency. Its valuation metrics, including a P/E of 17.9 and P/B of 2.66, suggest a fairly priced stock. The company balances moderate dividends, yielding 1.53%, supporting steady shareholder returns.
CrowdStrike Holdings, Inc.
CrowdStrike faces profitability challenges with a negative ROE of -0.59% and a net margin of -0.49%, signaling operational losses. Valuation appears stretched with a high P/B of 29.71, despite a distorted P/E. The firm reinvests heavily in R&D (27.2% of revenue), foregoing dividends to fuel growth.
Balanced Strength vs. Growth Risks
Cognizant offers a superior balance of profitability and valuation, minimizing risk with consistent returns. CrowdStrike’s profile suits investors prioritizing high-growth potential but tolerating operational volatility. The choice hinges on an investor’s appetite for stability versus aggressive expansion.
Which one offers the Superior Shareholder Reward?
I see Cognizant (CTSH) pays a steady dividend yield around 1.5%, with payout ratios near 27%, well-covered by free cash flow (3.2x dividend plus capex). It also maintains moderate buybacks supporting shareholder returns. CrowdStrike (CRWD) pays no dividend, reinvesting heavily in growth and R&D, with a free cash flow yield under 5% but no buybacks. Historically in tech, mature firms like CTSH reward income investors sustainably. CRWD’s aggressive reinvestment suits growth-focused portfolios but carries higher risk. I favor CTSH for superior, more balanced total shareholder reward in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Cognizant Technology Solutions and CrowdStrike Holdings, highlighting their core financial strengths and weaknesses:
Cognizant shows a balanced profile with strong ROE (4) and ROA (5) scores, reflecting efficient profit generation and asset utilization. CrowdStrike relies heavily on discounted cash flow strength (4) but lags significantly in ROE (1), ROA (1), and valuation metrics (PE/PB scores at 1), indicating growth potential but weaker profitability and expensive pricing. Cognizant’s moderate debt-to-equity (3) contrasts with CrowdStrike’s similar leverage, but the former’s more diversified strengths signal greater financial stability.
Bankruptcy Risk: Solvency Showdown
Cognizant’s Altman Z-Score of 6.85 and CrowdStrike’s 11.36 both place them well inside the safe zone, suggesting strong long-term solvency and resilience in this economic cycle:
Financial Health: Quality of Operations
Cognizant’s Piotroski F-Score of 7 indicates strong financial health, while CrowdStrike’s score of 4 raises some red flags about operational efficiency and internal stability:
How are the two companies positioned?
This section dissects Cognizant and CrowdStrike’s operational DNA by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Cognizant Technology Solutions and CrowdStrike diversify their income streams and where their primary sector bets lie:
Cognizant spreads its 2024 revenue across Healthcare ($5.93B), Financial Services ($5.75B), Products and Resources ($4.78B), and Communication, Media & Technology ($3.27B). This balanced mix reduces concentration risk and signals a broad ecosystem lock-in. CrowdStrike, however, pivots heavily on Subscription and Circulation ($3.76B) with a minor Professional Services slice ($192M), anchoring its growth on recurring cloud security revenues but exposing itself to subscription market dynamics.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Cognizant Technology Solutions Corporation and CrowdStrike Holdings, Inc.:
CTSH Strengths
- Diversified revenue streams across multiple sectors
- Favorable profitability ratios including 10.56% net margin and 12.31% ROIC
- Strong liquidity with current and quick ratios at 2.34
- Low leverage with debt-to-assets at 7.61%
- Global presence with significant North America and Europe revenues
- High asset turnover indicating efficient use of assets
CRWD Strengths
- Favorable current and quick ratios at 1.67 indicating solid liquidity
- Low debt-to-assets ratio at 9.07%
- Favorable fixed asset turnover at 4.76
- Growing subscription revenue dominating sales
- Presence in key global regions including US, Asia Pacific, and EMEA
- Recognized growth in professional services segment
CTSH Weaknesses
- ROE and WACC are only neutral, suggesting moderate capital efficiency
- P/E and P/B ratios are neutral, indicating market valuation is average
- Dividend yield neutral at 1.53%, less attractive for income investors
- No explicitly highlighted innovation metrics in data
CRWD Weaknesses
- Negative profitability with net margin at -0.49% and ROE at -0.59%
- Low ROIC at 0.7% signals weak capital returns
- High P/B ratio of 29.71 could indicate overvaluation risk
- Interest coverage low and neutral at 3.07, potentially risky for debt servicing
- No dividend yield, reducing income appeal
- Asset turnover at 0.45 is unfavorable, implying less efficient asset use
Overall, CTSH shows strong financial health, diversification, and global reach, balancing profitability with conservative leverage. CRWD excels in liquidity and growth potential but faces profitability and efficiency challenges, which could impact its strategic focus on scaling operations and improving returns.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competitive erosion. Let’s dissect the nature of each company’s moat:
Cognizant Technology Solutions Corporation: Operational Scale & Diversified Clientele
Cognizant’s moat stems from its broad outsourcing scale and diversified client base across industries. This manifests in stable 17% EBIT margins and 10.5% net margins. However, a declining ROIC trend signals margin pressures that new digital service offerings must counter by 2026.
CrowdStrike Holdings, Inc.: Rapidly Growing Network Effects in Cybersecurity
CrowdStrike’s competitive edge lies in its cloud-native platform’s network effects, evidenced by soaring 75% gross margins and 29% revenue growth in 2025. Despite currently negative net margins, improving ROIC suggests expanding operational leverage and a deepening moat as it penetrates new markets.
Scale & Stability vs. Growth & Network Effects
Cognizant offers a wider, established moat with consistent profitability but faces margin compression risks. CrowdStrike’s moat is narrower today but deepens rapidly with high growth and increasing ROIC. I see CrowdStrike better positioned to defend and expand market share amid evolving tech demands.
Which stock offers better returns?
The past year shows divergent price dynamics for Cognizant Technology Solutions and CrowdStrike Holdings, with notable swings and shifts in trading momentum reflecting differing market sentiments.
Trend Comparison
Cognizant Technology Solutions (CTSH) posted a 2.32% price gain over the past 12 months, indicating a bullish trend with accelerating momentum and moderate volatility. Its price ranged between 64.26 and 90.7.
CrowdStrike Holdings (CRWD) surged 25.3% over the same period, also bullish but with decelerating momentum and much higher volatility. Prices fluctuated from 217.89 to 543.01.
CTSH shows steady acceleration, while CRWD’s strong overall gain contrasts with recent sharp declines, leading CRWD to deliver the highest market performance this year.
Target Prices
Analysts present a bullish consensus on Cognizant Technology Solutions and CrowdStrike Holdings with solid upside potential.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Cognizant Technology Solutions Corporation | 82 | 107 | 93.2 |
| CrowdStrike Holdings, Inc. | 353 | 706 | 551.26 |
The target consensus for Cognizant sits about 21% above its current price of 77.08, reflecting confidence in its stable IT services. CrowdStrike’s consensus target exceeds the current 395.5 price by nearly 40%, signaling strong growth expectations in cybersecurity.
Don’t Let Luck Decide Your Entry Point
Optimize your entry points with our advanced ProRealTime indicators. You’ll get efficient buy signals with precise price targets for maximum performance. Start outperforming now!
How do institutions grade them?
I review the latest institutional grades for Cognizant Technology Solutions Corporation and CrowdStrike Holdings, Inc.:
Cognizant Technology Solutions Corporation Grades
The table below summarizes recent grades from major financial institutions for Cognizant:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | Maintain | Hold | 2026-02-05 |
| Morgan Stanley | Maintain | Equal Weight | 2026-02-05 |
| RBC Capital | Maintain | Sector Perform | 2026-02-05 |
| Guggenheim | Maintain | Buy | 2026-01-28 |
| Citigroup | Maintain | Neutral | 2026-01-22 |
| Wells Fargo | Maintain | Overweight | 2026-01-14 |
| TD Cowen | Maintain | Hold | 2026-01-09 |
| UBS | Maintain | Neutral | 2025-12-08 |
| William Blair | Upgrade | Outperform | 2025-11-21 |
| UBS | Maintain | Neutral | 2025-10-30 |
CrowdStrike Holdings, Inc. Grades
Here are the recent institutional grades for CrowdStrike Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Macquarie | Maintain | Neutral | 2026-01-27 |
| BTIG | Maintain | Buy | 2026-01-13 |
| Citigroup | Maintain | Buy | 2026-01-13 |
| Keybanc | Downgrade | Sector Weight | 2026-01-12 |
| Berenberg | Upgrade | Buy | 2026-01-09 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-18 |
| Stephens & Co. | Maintain | Overweight | 2025-12-18 |
| Freedom Capital Markets | Upgrade | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-12-04 |
| Goldman Sachs | Maintain | Buy | 2025-12-04 |
Which company has the best grades?
CrowdStrike holds predominantly Buy ratings from respected firms, indicating stronger bullish sentiment. Cognizant’s grades lean toward Hold and Neutral, with fewer upgrades. Investors may perceive CrowdStrike as having higher growth potential based on these grades.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Cognizant Technology Solutions Corporation
- Faces intense competition in IT services with pressure on margins and digital transformation demand.
CrowdStrike Holdings, Inc.
- Operates in a highly competitive cybersecurity market with rapid innovation and evolving threats.
2. Capital Structure & Debt
Cognizant Technology Solutions Corporation
- Maintains a very low debt-to-equity ratio (0.1), indicating strong financial stability and low leverage risk.
CrowdStrike Holdings, Inc.
- Higher debt-to-equity ratio (0.24) but manageable; interest coverage ratio is moderate at 3.07x, signaling some vulnerability.
3. Stock Volatility
Cognizant Technology Solutions Corporation
- Beta near 1 (0.957) suggests stock volatility aligned with the market; stable trading range.
CrowdStrike Holdings, Inc.
- Slightly higher beta (1.034) implies greater sensitivity to market swings and elevated risk.
4. Regulatory & Legal
Cognizant Technology Solutions Corporation
- Subject to data privacy and outsourcing regulations across multiple jurisdictions; risks from compliance costs.
CrowdStrike Holdings, Inc.
- Faces stringent cybersecurity regulations; legal risks linked to breach incidents and evolving compliance standards.
5. Supply Chain & Operations
Cognizant Technology Solutions Corporation
- Complex global delivery model with exposure to operational disruptions but benefits from scale and diversification.
CrowdStrike Holdings, Inc.
- Cloud-based service delivery reduces physical supply chain risks but depends heavily on data center stability.
6. ESG & Climate Transition
Cognizant Technology Solutions Corporation
- Increasing focus on sustainable operations and social governance may raise costs but improve stakeholder trust.
CrowdStrike Holdings, Inc.
- Faces pressure to demonstrate ESG responsibility, particularly on data ethics and energy use in cloud infrastructure.
7. Geopolitical Exposure
Cognizant Technology Solutions Corporation
- Global operations expose it to geopolitical tensions and shifting trade policies, especially US-Europe-Asia corridors.
CrowdStrike Holdings, Inc.
- Global client base creates exposure to geopolitical instability and cyber warfare risks, heightening uncertainty.
Which company shows a better risk-adjusted profile?
Cognizant’s strongest risk lies in market competition, where margin pressure is persistent but manageable due to its scale. CrowdStrike’s key risk is its weak profitability and high valuation multiples, which amplify financial vulnerability despite growth potential. Cognizant’s robust balance sheet and stable cash flow offer a superior risk-adjusted profile. Notably, CrowdStrike’s negative net margin and unfavorable ROE underscore profitability challenges, heightening investor caution.
Final Verdict: Which stock to choose?
Cognizant Technology Solutions Corporation (CTSH) stands out as a disciplined value creator. Its superpower lies in efficient capital allocation and consistent free cash flow generation. A point of vigilance is its slightly declining ROIC trend, signaling the need for close monitoring of profitability. CTSH suits portfolios focused on stable, moderate growth with reasonable risk.
CrowdStrike Holdings, Inc. (CRWD) commands a strategic moat through cloud security dominance and rapid revenue growth. Despite current profitability challenges, its expanding ROIC trend suggests improving operational leverage. Compared to CTSH, CRWD carries higher volatility but offers a growth-at-a-reasonable-price profile for investors seeking innovation-driven exposure.
If you prioritize steady value creation and financial resilience, CTSH is the compelling choice due to its robust free cash flow and favorable ratio profile. However, if you seek aggressive growth fueled by cloud innovation and are comfortable with short-term earnings volatility, CRWD offers superior upside potential amid its improving profitability trajectory. Both present distinct analytical scenarios aligned with different investor risk appetites.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Cognizant Technology Solutions Corporation and CrowdStrike Holdings, Inc. to enhance your investment decisions:
