Is CTSH (Cognizant Technology Solutions Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CTSH is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (6.07% vs ≤33% threshold), interest income ratio (0.50% vs ≤5% threshold), and cash & securities ratio (7.38% vs ≤33% threshold).

Cognizant Technology Solutions Corporation is a global leader in professional IT services, consulting, and outsourcing. The company helps clients modernize their operations through robotic process automation, AI, and analytics across key sectors like healthcare, financial services, and communications. For Muslim investors, CTSH represents a solid Halal investment opportunity within the technology sector. The stock successfully passes all four AAOIFI screening criteria, meaning its core business operations and financial structures perfectly align with Islamic investing principles. From an Islamic finance perspective, Cognizant's balance sheet is exceptionally clean. The company carries a very low debt-to-market capitalization ratio of just 6.1%, and its interest-bearing securities and cash represent only 7.4% of its market cap, significantly minimizing any exposure to riba. While the company is currently fully compliant, Muslim investors should periodically monitor Cognizant's financial services segment to ensure its consulting work does not heavily pivot toward developing proprietary software exclusively for conventional, interest-based banking operations. Cognizant Technology Solutions Corporation operates in the Technology sector under the Information Technology Services industry and is headquartered in Teaneck, NJ, US. The company is led by CEO Ravi Kumar Singisetti and employs approximately 336,300 people.

CTSH was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. CTSH passed 4 of these 4 screens.

Although CTSH passes all shariah screens, it does earn $105.0M in interest income (0.50% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.50 to purify the income.

CTSH was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.