CTSH · Earnings call · 2026Q3T · Full report
Free Cash Flow and Liquidity
COGNIZANT TECHNOLOGY SOLUTIONS CORP · 2026-10-29 · Importance 53 · Surprise 6 · In source text
Third-quarter free cash flow was $925 million, bringing year-to-date free cash flow to $1.6 billion. Cognizant ended the quarter with $1.6 billion in cash and short-term investments. Full-year free cash flow conversion guidance remained 90% to 100% of net income. Days sales outstanding was 89 days, up five days year over year, primarily due to a change in business mix.
Key facts
- Cognizant generated $925 million of free cash flow in Q3 2026 and $1.6 billion year-to-date.
- Cognizant ended Q3 2026 with $1.6 billion in cash and short-term investments.
- Cognizant expects full-year free cash flow conversion of 90% to 100% of net income.
- Cognizant's Q3 2026 DSO was 89 days, up five days year-over-year, primarily due to a change in business mix.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | — | Cognizant generated $925 million of free cash flow in Q3 2026 and $1.6 billion year-to-date. |