Cognizant Technology Solutions (CTSH)
Market Price (5/10/2026): $51.69 | Market Cap: $24.7 BilSector: Information Technology | Industry: IT Consulting & Other Services
Cognizant Technology Solutions (CTSH)
Market Price (5/10/2026): $51.69Market Cap: $24.7 BilSector: Information TechnologyIndustry: IT Consulting & Other Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.7%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.4%, FCF Yield is 10% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 13%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 12%, CFO LTM is 2.8 Bil, FCF LTM is 2.5 Bil Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -39% Stock buyback supportStock Buyback 3Y Total is 3.3 Bil Low stock price volatilityVol 12M is 29% Megatrend and thematic driversMegatrends include Cloud Computing, Cybersecurity, and Artificial Intelligence. Themes include Hybrid Cloud Solutions, Show more. | Weak multi-year price returns2Y Excs Rtn is -64%, 3Y Excs Rtn is -89% | Key risksCTSH key risks include [1] challenges in maintaining market position and pricing power against intense competition amid the rapid shift to Generative AI and [2] a potential surge in operational costs due to proposed changes to H-1B visa fees impacting its global delivery model. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.7%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.4%, FCF Yield is 10% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 13%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 12%, CFO LTM is 2.8 Bil, FCF LTM is 2.5 Bil |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -39% |
| Stock buyback supportStock Buyback 3Y Total is 3.3 Bil |
| Low stock price volatilityVol 12M is 29% |
| Megatrend and thematic driversMegatrends include Cloud Computing, Cybersecurity, and Artificial Intelligence. Themes include Hybrid Cloud Solutions, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -64%, 3Y Excs Rtn is -89% |
| Key risksCTSH key risks include [1] challenges in maintaining market position and pricing power against intense competition amid the rapid shift to Generative AI and [2] a potential surge in operational costs due to proposed changes to H-1B visa fees impacting its global delivery model. |
Qualitative Assessment
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1. Weak Q2 2026 Revenue Outlook and Softening Demand. Cognizant reported Q1 2026 adjusted earnings per share of $1.40, surpassing the consensus estimate of $1.33. However, the company's Q2 2026 revenue guidance of $5.45 billion to $5.52 billion (midpoint $5.485 billion) fell below analysts' consensus estimate of $5.56 billion. Management also cited a "complex macroeconomic environment" and "softening demand" as headwinds, contributing to investor caution despite strong Q1 bookings growth.
2. Broader IT Services and Tech Sector Headwinds. The broader B2B software sector experienced a significant correction, declining 22.2% year-to-date by March 2026. This downturn, which outpaced the broader market, was attributed to "AI disruption" challenging the perception of software as a high-growth, low-risk asset class, leading to a repricing of the sector. Additionally, the tech industry announced a substantial number of layoffs, with 33,330 job cuts in the first two months of 2026, a 51% increase year-over-year, influenced by factors including AI adoption and economic uncertainty.
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Stock Movement Drivers
Fundamental Drivers
The -36.7% change in CTSH stock from 1/31/2026 to 5/9/2026 was primarily driven by a -40.7% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 5092026 | Change |
|---|---|---|---|
| Stock Price ($) | 81.64 | 51.68 | -36.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 20,857 | 21,406 | 2.6% |
| Net Income Margin (%) | 10.2% | 10.4% | 2.1% |
| P/E Multiple | 18.6 | 11.1 | -40.7% |
| Shares Outstanding (Mil) | 486 | 477 | 1.9% |
| Cumulative Contribution | -36.7% |
Market Drivers
1/31/2026 to 5/9/2026| Return | Correlation | |
|---|---|---|
| CTSH | -36.7% | |
| Market (SPY) | 3.6% | 19.5% |
| Sector (XLK) | 22.1% | 17.2% |
Fundamental Drivers
The -28.4% change in CTSH stock from 10/31/2025 to 5/9/2026 was primarily driven by a -32.9% change in the company's P/E Multiple.| (LTM values as of) | 10312025 | 5092026 | Change |
|---|---|---|---|
| Stock Price ($) | 72.20 | 51.68 | -28.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 20,857 | 21,406 | 2.6% |
| Net Income Margin (%) | 10.2% | 10.4% | 2.1% |
| P/E Multiple | 16.5 | 11.1 | -32.9% |
| Shares Outstanding (Mil) | 486 | 477 | 1.9% |
| Cumulative Contribution | -28.4% |
Market Drivers
10/31/2025 to 5/9/2026| Return | Correlation | |
|---|---|---|
| CTSH | -28.4% | |
| Market (SPY) | 5.5% | 25.3% |
| Sector (XLK) | 17.1% | 15.9% |
Fundamental Drivers
The -28.5% change in CTSH stock from 4/30/2025 to 5/9/2026 was primarily driven by a -30.5% change in the company's P/E Multiple.| (LTM values as of) | 4302025 | 5092026 | Change |
|---|---|---|---|
| Stock Price ($) | 72.28 | 51.68 | -28.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 19,736 | 21,406 | 8.5% |
| Net Income Margin (%) | 11.3% | 10.4% | -8.3% |
| P/E Multiple | 15.9 | 11.1 | -30.5% |
| Shares Outstanding (Mil) | 493 | 477 | 3.4% |
| Cumulative Contribution | -28.5% |
Market Drivers
4/30/2025 to 5/9/2026| Return | Correlation | |
|---|---|---|
| CTSH | -28.5% | |
| Market (SPY) | 30.4% | 33.1% |
| Sector (XLK) | 68.1% | 21.5% |
Fundamental Drivers
The -9.0% change in CTSH stock from 4/30/2023 to 5/9/2026 was primarily driven by a -12.9% change in the company's P/E Multiple.| (LTM values as of) | 4302023 | 5092026 | Change |
|---|---|---|---|
| Stock Price ($) | 56.79 | 51.68 | -9.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 19,428 | 21,406 | 10.2% |
| Net Income Margin (%) | 11.8% | 10.4% | -11.7% |
| P/E Multiple | 12.7 | 11.1 | -12.9% |
| Shares Outstanding (Mil) | 512 | 477 | 7.3% |
| Cumulative Contribution | -9.0% |
Market Drivers
4/30/2023 to 5/9/2026| Return | Correlation | |
|---|---|---|
| CTSH | -9.0% | |
| Market (SPY) | 78.7% | 47.8% |
| Sector (XLK) | 137.6% | 37.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CTSH Return | 10% | -35% | 34% | 3% | 10% | -37% | -31% |
| Peers Return | 44% | -21% | 2% | 7% | -2% | -29% | -15% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 7% | 95% |
Monthly Win Rates [3] | |||||||
| CTSH Win Rate | 58% | 42% | 58% | 58% | 58% | 0% | |
| Peers Win Rate | 63% | 42% | 55% | 53% | 48% | 24% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| CTSH Max Drawdown | -18% | -41% | 0% | -14% | -14% | -38% | |
| Peers Max Drawdown | -6% | -35% | -23% | -22% | -25% | -31% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ACN, IBM, G, EPAM, DXC. See CTSH Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/8/2026 (YTD)
How Low Can It Go
| Event | CTSH | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -15.5% | -6.7% |
| % Gain to Breakeven | 18.3% | 7.1% |
| Time to Breakeven | 120 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.0% | -24.5% |
| % Gain to Breakeven | 56.1% | 32.4% |
| Time to Breakeven | 848 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -39.6% | -33.7% |
| % Gain to Breakeven | 65.5% | 50.9% |
| Time to Breakeven | 129 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -21.4% | -19.2% |
| % Gain to Breakeven | 27.2% | 23.7% |
| Time to Breakeven | 658 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -13.1% | -3.7% |
| % Gain to Breakeven | 15.0% | 3.9% |
| Time to Breakeven | 39 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.0% | -12.2% |
| % Gain to Breakeven | 29.8% | 13.9% |
| Time to Breakeven | 480 days | 62 days |
In The Past
Cognizant Technology Solutions's stock fell 0.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 0.0% gain to breakeven.
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| Event | CTSH | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.0% | -24.5% |
| % Gain to Breakeven | 56.1% | 32.4% |
| Time to Breakeven | 848 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -39.6% | -33.7% |
| % Gain to Breakeven | 65.5% | 50.9% |
| Time to Breakeven | 129 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -21.4% | -19.2% |
| % Gain to Breakeven | 27.2% | 23.7% |
| Time to Breakeven | 658 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.0% | -12.2% |
| % Gain to Breakeven | 29.8% | 13.9% |
| Time to Breakeven | 480 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -26.2% | -17.9% |
| % Gain to Breakeven | 35.5% | 21.8% |
| Time to Breakeven | 70 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -58.9% | -53.4% |
| % Gain to Breakeven | 143.5% | 114.4% |
| Time to Breakeven | 292 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -21.6% | -8.6% |
| % Gain to Breakeven | 27.6% | 9.5% |
| Time to Breakeven | 791 days | 47 days |
In The Past
Cognizant Technology Solutions's stock fell 0.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 0.0% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Cognizant Technology Solutions (CTSH)
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Similar to Accenture.
One of the major global IT consulting and outsourcing companies, like Infosys.
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```html- Consulting Services: Provides strategic advice and guidance to businesses for technology adoption and operational improvement.
- Technology Implementation & Management: Delivers services for designing, building, integrating, and managing IT systems and applications.
- Business Process & IT Outsourcing: Manages and operates clients' non-core business functions or IT infrastructure.
- Digital Experience & Artificial Intelligence Solutions: Develops and implements solutions leveraging artificial intelligence, analytics, and digital platforms to enhance customer experience and drive innovation.
- Industry-Specific Operational Solutions: Offers specialized services to improve operations in sectors like healthcare, financial services, manufacturing, retail, and communications.
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Cognizant Technology Solutions (CTSH) sells primarily to other companies, providing consulting, technology, and outsourcing services. The provided background information does not list the names of specific major customer companies.
However, based on its operating segments and service descriptions, Cognizant's major customers are businesses within the following broad categories:
- Financial Services Companies: This includes entities involved in areas such as digital lending, fraud detection, and next-generation payments.
- Healthcare and Life Sciences Companies: These customers include healthcare providers, payers, pharmaceutical companies, biotech companies, and medical device companies.
- Products and Resources Companies: This category encompasses manufacturers, retailers, travel and hospitality companies, logistics companies, energy companies, and utility service companies.
- Communications, Media and Technology Companies: Cognizant serves information companies, media and entertainment companies, communications companies, and technology companies.
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Ravi Kumar S, Chief Executive Officer
Ravi Kumar S was appointed CEO of Cognizant in January 2023. Prior to joining Cognizant, he served as President of Infosys from 2016 to 2022, where he led the global services organization across all industry segments and chaired the Board of Infosys BPM Ltd. His early career involved working as a nuclear scientist at the Bhabha Atomic Research Center of India. He also held positions at PricewaterhouseCoopers, Cambridge Technology Partners, Oracle Corporation, and Sapient (now Publicis Sapient). Ravi Kumar S is a member of the board of directors of TransUnion and the board of governors of the New York Academy of Sciences. He also chairs the AI working committee of the US Chamber of Commerce and is on their board of directors, as well as on the Board of US India Strategic Partnership Forum (USISPF).
Jatin Dalal, Chief Financial Officer
Jatin Dalal was appointed Chief Financial Officer of Cognizant, with his appointment anticipated to be effective in December 2023. He joined Cognizant from Wipro, a publicly traded multinational technology services and consulting company, where he served as CFO since April 2015 and took on additional responsibilities as President beginning in December 2019. During his tenure at Wipro, he played a pivotal role in leading Wipro Ventures, the company's strategic investment arm focused on early- to mid-stage startups. Dalal held various finance leadership roles at Wipro since joining in 2002, including CFO of its Global IT Business and UK Head of Finance for the Europe region. He also served as a member of the New York Stock Exchange's Listed Company Advisory Board from June 2015 to November 2022. Prior to Wipro, he was part of General Electric's (GE) Financial Management Program (FMP).
Kathy Diaz, Chief People Officer
Kathy Diaz was appointed Chief People Officer of Cognizant, after having served as interim CPO since May 2023. She joined Cognizant in mid-2020 as Senior Vice President, Total Rewards and HR Mergers and Acquisitions, where she was responsible for creating Cognizant's global Total Rewards function. Her extensive career in human resources leadership spans global organizations, including Merck, PVH, and Pearson.
John Kim, Chief Legal Officer, Chief Administrative Officer and Corporate Secretary
John Kim currently serves as Chief Legal Officer, Chief Administrative Officer, and Corporate Secretary at Cognizant, a role he has held since February 2024, reflecting expanded responsibilities across legal, procurement, global real estate, and corporate security. He joined Cognizant in November 2019 as Senior Vice President and Deputy General Counsel, Global Commercial Contracts, and was appointed interim General Counsel in January 2021 before becoming Executive Vice President, General Counsel, Chief Corporate Affairs Officer and Corporate Secretary in March 2021. Before joining Cognizant, he was the Global Head of Big Deals at Capgemini. His legal background also includes serving as U.S. Counsel for WNS Global Services and General Counsel for Travelport, a prominent travel technology company, along with holding general counsel positions at several other technology services companies.
Ganesh Ayyar, President – Asia Pacific & Japan and Industry Solutions Group
Effective February 23, 2026, Ganesh Ayyar transitioned to the role of President – Asia Pacific & Japan and Industry Solutions Group at Cognizant. In this position, he oversees the company's operations in the Asia Pacific and Japan regions while maintaining responsibility for industry solutions. Prior to this role, he served as President – Intuitive Operations and Automation and Industry Solutions within Cognizant's leadership structure.
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```htmlKey Risks to Cognizant Technology Solutions (CTSH)
- Intense Competition and AI-driven Service Deflation: Cognizant operates in a highly competitive IT services market alongside major players such as Accenture, TCS, Infosys, and IBM Consulting, leading to significant pricing pressures and potential reductions in profit margins. This competitive landscape is further intensified by rapid technological advancements and the emergence of new business models, particularly with the widespread adoption of Artificial Intelligence. There is a notable risk of "traditional services deflation from generative AI," which could impact Cognizant's revenue from its legacy business segments.
- Heavy Dependence on North America: A substantial portion of Cognizant's revenue, approximately 74.5% as of fiscal year 2024, is generated from its operations in North America. This high geographical concentration makes the company particularly vulnerable to economic downturns, market fluctuations, or adverse regulatory changes within this region. This includes potential impacts from anti-outsourcing legislation in the United States, which could directly affect the cost-effectiveness of its offshore operations.
- Talent Acquisition and Retention Challenges: The success of Cognizant, a professional services company, is critically dependent on its ability to attract, train, and retain a highly skilled workforce, especially in rapidly evolving areas like Artificial Intelligence and digital technologies. The technology sector experiences intense competition for talent, and Cognizant has faced high voluntary attrition rates for technical services, reported at 15.9% in Q4 2024. Difficulties in effectively managing talent acquisition and retention strategies could impede the company's capacity to deliver innovative solutions and execute projects efficiently.
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The clear emerging threat for Cognizant Technology Solutions is the accelerating capability and accessibility of advanced artificial intelligence (AI) and hyper-automation tools, particularly generative AI, that could increasingly automate or autonomously perform tasks and generate solutions previously requiring extensive human-led professional services. While Cognizant itself offers AI services, the threat lies in the potential for clients to directly leverage these rapidly evolving AI capabilities (or AI-powered platforms/products) to fulfill their needs for consulting, software development, data analytics, process automation, and operational improvements, thereby reducing reliance on large-scale human consulting and outsourcing engagements from firms like Cognizant. This paradigm shift could fundamentally alter the demand landscape for traditional professional services, analogous to how streaming services disrupted physical media rentals.
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Addressable Markets for Cognizant Technology Solutions (CTSH)
Cognizant Technology Solutions provides a range of professional services, including consulting, technology, and outsourcing. The addressable markets for its main products and services are substantial across various regions:
Consulting and Technology Services
- IT Consulting Services: The global IT consulting services market is estimated at USD 69.59 billion in 2025 and is expected to reach USD 106.58 billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 6.4%. Another estimate places the global market at approximately USD 78.03 billion in 2024, projected to reach USD 129.15 billion by 2034 with a CAGR of 6.50%. North America contributes a significant portion, representing around 35-38% of global IT consulting demand. In 2025, North America held 27.75% of the global market share (out of USD 117.1 billion total). Europe accounts for approximately 25%, and Asia-Pacific nearly 28% of the global activity.
Outsourcing Services
- IT Services Outsourcing: The global IT services outsourcing market was estimated at USD 744.62 billion in 2024 and is expected to reach USD 1,219.31 billion by 2030, growing at a CAGR of 8.6% from 2025 to 2030. Another report indicates the market size was USD 611.80 billion in 2024, projected to reach USD 1,345.48 billion by 2034, with a CAGR of 8.20% from 2025 to 2034. North America dominated this market with over 32% revenue share in 2024, while Asia Pacific is identified as the fastest-growing market.
Financial Services
- Digital Lending Platforms: The global digital lending platform market size was estimated at USD 10.55 billion in 2024 and is projected to reach USD 44.49 billion by 2030, growing at a CAGR of 27.7% from 2025 to 2030. Another estimate values the digital lending market at USD 507.27 billion in 2025, expected to grow to USD 985.03 billion by 2031 at a CAGR of 11.68%. Asia-Pacific accounted for 39.35% of the digital lending market size in 2025.
- Online Payment Fraud Detection: The global online payment fraud detection market size is projected to increase from US$ 8.09 billion in 2025 to US$ 19.99 billion by 2032, with a CAGR of 13.8%. Another projection suggests growth from USD 8.36 billion in 2023 to USD 25.58 billion in 2031, at a CAGR of 15.02%. North America is anticipated to hold approximately 21.6% market share in 2025.
Healthcare Services
- Healthcare IT Services: The global healthcare IT services market size was estimated at USD 143.43 billion in 2022 and is projected to reach USD 382.27 billion by 2030, growing at a CAGR of 13.2% from 2023 to 2030. Another source indicates a market size of USD 354.04 billion in 2025, projected to reach USD 1380.51 billion by 2034 with a CAGR of 16.65%. North America held the largest share in 2022, accounting for over 36.0% of the global revenue, with the U.S. healthcare IT market size for IT projected to be $176.6 billion in 2025, making up 63% of the total health IT market.
Products and Resources (including Retail, Travel & Hospitality, Manufacturing, Logistics, Energy & Utilities)
- Travel & Hospitality (IT and AI services): The global travel retail market size was estimated at USD 75.1 billion in 2024 and is projected to reach USD 128.9 billion by 2030, growing at a CAGR of 9.5%. The broader hospitality market size is expected to grow to $7.47 trillion in 2030 at a CAGR of 6.4%. The Travel & Hospitality AI Market is forecast to reach $8.34 billion by 2030, with a CAGR of 15.2%.
Communications, Media and Technology
- Digital Content Creation: The global digital content market size is estimated at USD 39.61 billion in 2026, with projections to reach USD 71.19 billion by 2031, growing at a 12.45% CAGR. Another source indicates the global digital content creation market size was estimated at USD 32.28 billion in 2024 and is projected to reach USD 69.80 billion by 2030, growing at a CAGR of 13.9%. North America dominated this market with a 33.4% share in 2024, and held over 40% of the global revenue with a market size of USD 13.63 billion in 2025.
- Digital Engineering Services: The global digital product engineering services market was valued at USD 2.23 billion in 2024 and is projected to reach USD 3.12 billion by 2032, exhibiting a CAGR of 5.5%. The AI engineering segment within this market is projected to grow at approximately 30% CAGR.
Cross-Segment Capabilities (Robotic Process Automation, Analytics, AI Services)
- Robotic Process Automation (RPA): The global Robotic Process Automation Market size was valued at USD 4.98 billion in 2025 and is likely to exceed USD 44.56 billion by 2035, expanding at a CAGR of more than 24.5%. Another report states the market is expected to reach US$ 20.83 billion by 2031 from US$ 4.48 billion in 2024, growing at a CAGR of 24.8% during 2025–2031. North America held the largest revenue share of over 39.0% in 2025 and is estimated to contribute 34% to the global market's growth.
- AI in RPA: The AI in RPA market size is valued to increase by USD 14.28 billion, at a CAGR of 33% from 2024 to 2029. The global market for AI in RPA is projected to reach 35.27 billion U.S. Dollars by 2027.
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Cognizant Technology Solutions (CTSH) is expected to drive future revenue growth over the next two to three years through several key strategies:
- Strategic Focus on Artificial Intelligence (AI) and Digital Transformation: Cognizant is significantly investing in and prioritizing AI and digital transformation initiatives to meet evolving client needs. The company's strategy is evolving to position itself as an "AI builder," which is anticipated to be a primary catalyst for securing new large deals. Cognizant has reported over 4,000 AI engagements, and approximately 30% of its developer efforts in software development cycles are now AI-assisted and agentic. Strategic alliances, such as those with Google Cloud, further support its digital transformation and AI growth objectives.
- Sustained Large Deal Momentum and Strategic Acquisitions: Cognizant has consistently demonstrated strong momentum in securing large deals, including a record number of contracts valued at over $100 million in total contract value (TCV), and larger "mega deals". For instance, in Q4 2025, the company closed 12 large deals, each exceeding $100 million in TCV, representing a 60% increase in total contract value compared to the previous year. Strategic acquisitions also play a crucial role in expanding capabilities and market reach; recent examples include the acquisition of Belcan in September 2024 and Thirdera earlier in the year, which are opening new growth opportunities. The acquisition of 3Cloud specifically added over 1,200 Azure specialists and engineers.
- Expansion in High-Growth Verticals and Service Offerings: The company's revenue growth strategy emphasizes broadening its service offerings and extending its market reach, particularly within high-potential sectors. Key segments such as Financial Services and Health Sciences have shown robust performance, with Financial Services reporting a 9% rise in constant currency revenue for Q4 2025. Cognizant is also focusing on international expansion, especially in emerging markets, to diversify its revenue streams.
- Shift Towards Outcome-Based and Fixed-Price Contracts: Cognizant is strategically shifting its business model towards fixed-price and outcome-based contracts, which now account for over 50% of its revenue. This approach enables the company to "own the outcomes" for clients, potentially leading to more valuable and integrated engagements that can drive non-linear revenue growth and structurally protect margins.
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Share Repurchases
- In March 2025, Cognizant's Board of Directors approved a $2 billion increase to the existing share repurchase program, with approximately $3.1 billion remaining authorized as of March 24, 2025.
- The company anticipates repurchasing $1.1 billion of shares in 2025, an increase of $500 million from its prior expectation.
- Cognizant reported annual share repurchases of $1.064 billion in 2023 and $605 million in 2024. For 2026, the company expects to allocate approximately $1 billion towards share repurchases as part of an estimated $1.6 billion return of capital to shareholders.
Share Issuance
- Cognizant has experienced a decline in shares outstanding over the last few years, with 478 million shares outstanding in Q4 2025.
- Shares outstanding decreased by 1.61% in 2025 from 2024, 1.58% in 2024 from 2023, and 2.7% in 2023 from 2022.
- Expected diluted earnings per share (EPS) growth for 2026 is partly driven by a projected lower share count, indicating a net reduction in outstanding shares.
Outbound Investments
- Cognizant made several acquisitions, including 3Cloud Solutions in November 2025, Belcan in June 2024, and Thirdera in December 2023.
- Payments for business acquisitions were approximately $1.615 billion in 2024, $409 million in 2023, and $367 million in 2022.
- The company's long-term capital allocation framework includes the flexibility to pursue strategic acquisitions, with roughly one-third of the anticipated inorganic contribution to 2026 revenue growth expected from future mergers and acquisitions.
Capital Expenditures
- Cognizant's capital expenditures were $288 million in 2025, $297 million in 2024, and $317 million in 2023.
- Capital expenditures in Q4 2025 amounted to $77.0 million.
- The company is focusing strategic investments on AI and embedded engineering to enhance its capabilities and drive growth. A commitment to hiring 20,000 India campus recruits in 2026 indicates expansion in its cost pyramid, implying associated infrastructure and talent investments.
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| 04102026 | ADSK | Autodesk | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 8.5% | 8.5% | 0.0% |
| 04102026 | BSY | Bentley Systems | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.2% | 4.2% | 0.0% |
| 04102026 | ENPH | Enphase Energy | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 5.7% | 5.7% | 0.0% |
| 04102026 | BL | BlackLine | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 3.2% | 3.2% | -3.0% |
| 03132026 | CTSH | Cognizant Technology Solutions | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -12.4% | -12.4% | -12.4% |
| 03312023 | CTSH | Cognizant Technology Solutions | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 12.2% | 22.3% | -4.2% |
| 09302022 | CTSH | Cognizant Technology Solutions | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 7.0% | 20.0% | -9.5% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 75.45 |
| Mkt Cap | 15.1 |
| Rev LTM | 17,025 |
| Op Inc LTM | 2,077 |
| FCF LTM | 1,644 |
| FCF 3Y Avg | 1,433 |
| CFO LTM | 2,002 |
| CFO 3Y Avg | 1,815 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 6.9% |
| Rev Chg 3Y Avg | 4.5% |
| Rev Chg Q | 7.1% |
| QoQ Delta Rev Chg LTM | 1.7% |
| Op Inc Chg LTM | 7.9% |
| Op Inc Chg 3Y Avg | 8.2% |
| Op Mgn LTM | 15.4% |
| Op Mgn 3Y Avg | 15.1% |
| QoQ Delta Op Mgn LTM | 0.0% |
| CFO/Rev LTM | 13.7% |
| CFO/Rev 3Y Avg | 12.2% |
| FCF/Rev LTM | 12.1% |
| FCF/Rev 3Y Avg | 10.9% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 15.1 |
| P/S | 1.1 |
| P/Op Inc | 8.6 |
| P/EBIT | 8.5 |
| P/E | 14.2 |
| P/CFO | 8.7 |
| Total Yield | 8.8% |
| Dividend Yield | 1.4% |
| FCF Yield 3Y Avg | 5.9% |
| D/E | 0.2 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -10.5% |
| 3M Rtn | -28.5% |
| 6M Rtn | -27.3% |
| 12M Rtn | -36.7% |
| 3Y Rtn | -21.0% |
| 1M Excs Rtn | -19.0% |
| 3M Excs Rtn | -35.2% |
| 6M Excs Rtn | -37.0% |
| 12M Excs Rtn | -66.8% |
| 3Y Excs Rtn | -105.7% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Health Sciences (HS) | 5,932 | 5,674 | 5,631 | 5,337 | 4,852 |
| Financial Services (FS) | 5,753 | 5,809 | 6,072 | 6,051 | 5,621 |
| Products and Resources (P&R) | 4,782 | 4,628 | 4,566 | 4,276 | 3,696 |
| Communications, Media and Technology (CMT) | 3,269 | 3,242 | 3,159 | 2,843 | 2,483 |
| Total | 19,736 | 19,353 | 19,428 | 18,507 | 16,652 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Health Sciences (HS) | 1,073 | 1,352 | 1,190 | 1,527 | 1,383 |
| Financial Services (FS) | 915 | 1,156 | 1,323 | 1,707 | 1,449 |
| Products and Resources (P&R) | 771 | 984 | 1,071 | 1,301 | 1,078 |
| Communications, Media and Technology (CMT) | 393 | 625 | 769 | 925 | 794 |
| Unallocated costs | -260 | -1,428 | -1,385 | -2,634 | -2,590 |
| Total | 2,892 | 2,689 | 2,968 | 2,826 | 2,114 |
Price Behavior
| Market Price | $51.68 | |
| Market Cap ($ Bil) | 24.7 | |
| First Trading Date | 06/19/1998 | |
| Distance from 52W High | -40.1% | |
| 50 Days | 200 Days | |
| DMA Price | $59.58 | $70.02 |
| DMA Trend | down | down |
| Distance from DMA | -13.3% | -26.2% |
| 3M | 1YR | |
| Volatility | 36.1% | 29.5% |
| Downside Capture | 1.04 | 0.70 |
| Upside Capture | -18.51 | 46.52 |
| Correlation (SPY) | 17.3% | 31.3% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.67 | 0.16 | 0.55 | 0.64 | 0.79 | 0.80 |
| Up Beta | 0.09 | 0.16 | 0.17 | 0.10 | 0.60 | 0.78 |
| Down Beta | -2.56 | -0.76 | 0.19 | 0.43 | 0.82 | 0.82 |
| Up Capture | -7% | -15% | -10% | 48% | 43% | 41% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 9 | 19 | 28 | 62 | 128 | 393 |
| Down Capture | 737% | 97% | 170% | 123% | 116% | 97% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 13 | 24 | 36 | 62 | 123 | 359 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CTSH | |
|---|---|---|---|---|
| CTSH | -32.6% | 29.4% | -1.33 | - |
| Sector ETF (XLK) | 63.9% | 20.8% | 2.27 | 20.6% |
| Equity (SPY) | 29.0% | 12.5% | 1.83 | 32.1% |
| Gold (GLD) | 39.8% | 27.0% | 1.22 | -16.3% |
| Commodities (DBC) | 50.6% | 18.0% | 2.21 | -9.1% |
| Real Estate (VNQ) | 13.0% | 13.5% | 0.66 | 19.6% |
| Bitcoin (BTCUSD) | -17.4% | 42.1% | -0.34 | 12.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CTSH | |
|---|---|---|---|---|
| CTSH | -7.4% | 26.9% | -0.28 | - |
| Sector ETF (XLK) | 21.2% | 24.8% | 0.76 | 50.6% |
| Equity (SPY) | 12.8% | 17.1% | 0.59 | 58.9% |
| Gold (GLD) | 20.9% | 17.9% | 0.95 | 0.8% |
| Commodities (DBC) | 13.8% | 19.1% | 0.59 | 11.7% |
| Real Estate (VNQ) | 3.4% | 18.8% | 0.08 | 46.2% |
| Bitcoin (BTCUSD) | 7.0% | 56.0% | 0.34 | 20.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CTSH | |
|---|---|---|---|---|
| CTSH | 0.0% | 28.5% | 0.05 | - |
| Sector ETF (XLK) | 25.0% | 24.4% | 0.92 | 58.0% |
| Equity (SPY) | 15.1% | 17.9% | 0.72 | 64.7% |
| Gold (GLD) | 13.4% | 15.9% | 0.69 | 1.5% |
| Commodities (DBC) | 9.3% | 17.8% | 0.44 | 19.3% |
| Real Estate (VNQ) | 5.8% | 20.7% | 0.24 | 52.8% |
| Bitcoin (BTCUSD) | 67.8% | 66.9% | 1.07 | 14.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/29/2026 | -0.8% | -5.9% | |
| 2/4/2026 | 3.0% | 0.1% | -11.3% |
| 10/29/2025 | 5.7% | 7.4% | 14.1% |
| 7/30/2025 | -2.4% | -3.6% | -2.0% |
| 4/30/2025 | 2.3% | 5.9% | 10.5% |
| 2/5/2025 | 4.2% | 5.4% | -0.1% |
| 10/30/2024 | 0.3% | 6.8% | 8.7% |
| 7/31/2024 | 0.8% | -3.3% | 2.3% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 14 | 16 |
| # Negative | 14 | 11 | 8 |
| Median Positive | 4.2% | 4.7% | 6.5% |
| Median Negative | -2.4% | -4.2% | -5.5% |
| Max Positive | 7.9% | 7.4% | 14.1% |
| Max Negative | -13.8% | -14.2% | -12.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/12/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/12/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/14/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/15/2023 | 10-K |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 07/28/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 4/29/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 5.45 Bil | 5.49 Bil | 5.52 Bil | ||||
| 2026 Revenue | 22.11 Bil | 22.38 Bil | 22.64 Bil | -0.1% | Lowered | Guidance: 22.40 Bil for 2026 | |
| 2026 Adjusted Operating Margin | 16.0% | 16.1% | 16.2% | 0.6% | 0.1% | Raised | Guidance: 16.0% for 2026 |
| 2026 Adjusted Diluted EPS | 5.63 | 5.7 | 5.77 | 1.2% | Raised | Guidance: 5.63 for 2026 | |
Prior: Q4 2025 Earnings Reported 2/4/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 5.36 Bil | 5.40 Bil | 5.44 Bil | 1.9% | Higher New | Guidance: 5.30 Bil for Q4 2025 | |
| 2026 Revenue | 22.14 Bil | 22.40 Bil | 22.66 Bil | 6.3% | Higher New | Guidance: 21.07 Bil for 2025 | |
| 2026 Adjusted Operating Margin | 15.9% | 16.0% | 16.1% | 1.9% | 0.3% | Higher New | Guidance: 15.7% for 2025 |
| 2026 Adjusted Diluted EPS | 5.56 | 5.63 | 5.7 | 7.4% | Higher New | Guidance: 5.24 for 2025 | |
| 2026 Share Repurchases and Dividends | 1.60 Bil | ||||||
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Kerdman, Alina | SVP, Controller & CAO | Direct | Sell | 3172026 | 60.78 | 131 | 7,962 | 38,109 | Form |
| 2 | Kerdman, Alina | SVP, Controller & CAO | Direct | Sell | 3032026 | 63.16 | 151 | 9,537 | 39,475 | Form |
| 3 | Kerdman, Alina | SVP, Controller & CAO | Direct | Sell | 2182026 | 66.75 | 160 | 10,680 | 42,052 | Form |
| 4 | Gummadi, Surya | President - Americas | Direct | Sell | 2042026 | 83.06 | 1,728 | 143,523 | 2,129,675 | Form |
| 5 | Patsalos-Fox, Michael | Direct | Sell | 1092026 | 84.23 | 2,000 | 168,460 | 2,504,077 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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