NASDAQ Shariah screener · October 2026
Is Cognizant Technology Solutions Corporation (CTSH) Halal?
Cognizant Technology Solutions Corporation · NASDAQ: CTSH · Technology
The short answer
Yes - Cognizant Technology Solutions Corporation (CTSH) passes this Shariah stock screen on its Q2 2026 10-Q figures. The IT consulting and technology-services business discloses no haram segments. Interest-bearing debt of about $1,560M (short-term $33M plus long-term $1,527M at June 30, 2026) is about 5.36% of its ~$29.1B market cap (Sep 2026) - below the ~33% ceiling. Separately disclosed interest income of $18M in Q2 2026 is about 0.33% of $5,481M revenue (six months: $40M, ~0.37%) - far below the 5% ceiling. Competing positions: Zoya rates CTSH Shariah-compliant; Musaffa classifies it NOT HALAL (Oct 2026), with no specific ratio cited - reported here honestly.
Gate 1 — Business activity: PASS
Cognizant Technology Solutions Corporation (NASDAQ: CTSH) is a professional IT services company headquartered in Teaneck, New Jersey, providing consulting, technology, and outsourcing services to clients worldwide. Per its Q2 2026 10-Q, Cognizant serves clients across Financial Services, Health Sciences, Products & Resources, and Communications, Media and Technology, and in 2026 completed AI/cloud acquisitions including 3Cloud (January 1, 2026) and Astreya Partners (June 22, 2026). The 10-Q describes an IT-services business - application development, consulting, systems integration, and business process services - and discloses no alcohol, tobacco, gambling, adult entertainment, conventional weapons manufacturing, or interest-based financial services operations. This is a factual business-activity screen, not a religious ruling - consult a qualified scholar for personal rulings.
Gate 2 — Debt and cash: PASS
Per Cognizant's Q2 2026 10-Q (quarter ended June 30, 2026; $ millions; unaudited), the balance sheet shows short-term debt of $33M and long-term debt of $1,527M (including $1,000M drawn under the revolving credit facility to fund the Astreya acquisition and share repurchases), for total interest-bearing debt of $1,560M. Operating lease liabilities ($145M current, $389M noncurrent) are excluded. Against a market cap of about $29.1B (verified September 4, 2026 via MarketBeat), debt-to-market-cap is about 5.36% - well under the ~33% ceiling. Cash and cash equivalents of $1,038M plus short-term investments of $13M ($1,051M combined) are about 3.61% of market cap.
Gate 3 — Non-compliant income: PASS
Cognizant's Q2 2026 10-Q separately discloses Interest income as its own line on the income statement: $18M for the three months ended June 30, 2026 against revenues of $5,481M (about 0.33%), and $40M for the six months ended June 30, 2026 against $10,894M of revenue (about 0.37%). Zoya's page cites the FY2025 annual report with interest income of $105M against $21,108M revenue (about 0.5%). Both figures are far below the 5% non-compliant income ceiling, and interest income is not buried inside revenue - Gate 3 passes on the primary filing's own figures.
Key figures used
- Business: IT consulting and technology services (HQ Teaneck, New Jersey) - digital transformation, consulting, and outsourcing services across Financial Services, Health Sciences, Products & Resources, and Communications, Media and Technology; AI-focused build strategy (2026 acquisitions: 3Cloud, Astreya Partners)
- Q2 2026 10-Q (quarter ended June 30, 2026; $ millions; unaudited): revenue $5,481M (Q2), $10,894M (six months); net income $636M (Q2)
- Interest-bearing debt at June 30, 2026: short-term debt $33M plus long-term debt $1,527M = $1,560M (excludes operating lease liabilities of $145M current / $389M noncurrent); about 5.36% of ~$29.1B market cap (verified Sep 4, 2026, MarketBeat) vs ~33% ceiling
- Liquidity: cash and cash equivalents $1,038M plus short-term investments $13M = $1,051M, about 3.61% of market cap
- Interest income separately disclosed on the 10-Q income statement: $18M (Q2 2026) against revenue of $5,481M (~0.33%); $40M (six months) against $10,894M (~0.37%) - far below the 5% ceiling
Frequently asked questions
What does Cognizant do?
Cognizant Technology Solutions Corporation (NASDAQ: CTSH), headquartered in Teaneck, New Jersey, is a professional IT services company providing consulting, technology, and outsourcing services to clients across Financial Services, Health Sciences, Products & Resources, and Communications, Media and Technology. Per its Q2 2026 10-Q, it is pursuing an AI-focused build strategy and in 2026 acquired 3Cloud and Astreya Partners for AI and cloud services. Q2 2026 revenue was $5,481 million.
Why does Cognizant pass this Shariah stock screen?
Cognizant passes all three gates on its own Q2 2026 10-Q figures. Business activity: IT consulting and technology services, with no alcohol, tobacco, gambling, adult entertainment, conventional weapons, or interest-based financial services operations disclosed. Debt: $1,560 million of interest-bearing debt (short-term $33M plus long-term $1,527M) is about 5.36% of its ~$29.1 billion market cap, below the ~33% ceiling. Interest income: $18 million in Q2 2026 is about 0.33% of revenue, far below the 5% ceiling. Note: Musaffa classifies CTSH as NOT HALAL (October 2026) while Zoya lists it as Shariah-compliant - positions reported here honestly; this page applies the screen directly from Cognizant's own filings.
What is Cognizant's interest-bearing debt ratio?
Per Cognizant's Q2 2026 10-Q (quarter ended June 30, 2026; $ millions; unaudited), short-term debt was $33 million and long-term debt was $1,527 million (including $1,000 million borrowed under the revolving credit facility to fund the Astreya acquisition and share repurchases), for total interest-bearing debt of $1,560 million. Operating lease liabilities ($145M current, $389M noncurrent) are excluded. Against a market cap of about $29.1 billion (verified September 4, 2026 via MarketBeat), debt divided by market cap is about 5.36%, well under the ~33% ceiling. Cash and cash equivalents of $1,038 million plus short-term investments of $13 million ($1,051 million combined) are about 3.61% of market cap.
How much interest income does Cognizant earn?
Cognizant's Q2 2026 10-Q separately discloses Interest income as its own line on the income statement: $18 million for the three months ended June 30, 2026 against revenues of $5,481 million (about 0.33%), and $40 million for the six months ended June 30, 2026 against $10,894 million of revenue (about 0.37%). Zoya's page cites the FY2025 annual report with interest income of $105 million against $21,108 million revenue (about 0.5%). All of these are far below the 5% non-compliant income ceiling, and the gate is computed from the primary filing's own separately disclosed figures.
Do Zoya, Musaffa, or ShariaPortfolio cover Cognizant?
Zoya covers CTSH at zoya.finance/stocks/ctsh: it lists Cognizant as Shariah-compliant and therefore considered halal to invest in, based on its most recent financial reports; its data fields cite the FY2025 annual report (revenue $21,108,000,000, interest income $105,000,000, about 0.5% of the combined total). Musaffa covers CTSH at musaffa.com/stock/CTSH/ and classifies it as NOT HALAL as of October 2026 under its AAOIFI methodology; the page gives no specific ratio cited for that classification. No ShariaPortfolio screening page or rating for CTSH was found in a web search - reported as absent, not invented. This page applies the screen directly from Cognizant's own SEC filings and reports these positions honestly.
Sources
- Cognizant Q2 2026 10-Q (quarter ended June 30, 2026; StockTitan full filing text)
- Cognizant Reports Second Quarter 2026 Results (PR Newswire, July 29, 2026 - balance sheet: cash $1,038M, short-term debt $33M, long-term debt $1,527M)
- Musaffa CTSH page - classifies NOT HALAL (October 2026, AAOIFI methodology)
- Zoya CTSH page - Shariah-compliant; cites FY2025 revenue $21,108M, interest income $105M
- Cognizant Q2 2026 earnings call transcript (The Motley Fool - revolving facility borrowing context)
- Finnhub quote CTSH (NASDAQ listing, ~$60.88, market cap ~$25.42B, Oct 2026)
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).