(CTSH) Cognizant Technology - Overview
Stock: Consulting, Outsourcing, Ai, Cloud
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.60% |
| Yield on Cost 5y | 1.74% |
| Yield CAGR 5y | 6.61% |
| Payout Consistency | 99.5% |
| Payout Ratio | 23.5% |
| Risk 5d forecast | |
|---|---|
| Volatility | 37.3% |
| Relative Tail Risk | -5.20% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.45 |
| Alpha | -27.28 |
| Character TTM | |
|---|---|
| Beta | 0.874 |
| Beta Downside | 0.893 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.97% |
| CAGR/Max DD | 0.18 |
Description: CTSH Cognizant Technology December 17, 2025
Cognizant Technology Solutions Corp. (NASDAQ:CTSH) is a global professional services firm that delivers consulting, technology, and outsourcing solutions across North America, Europe, and other regions. Its operations are organized into four verticals-Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology-and span a broad portfolio that includes AI-driven automation, cloud and security services, digital engineering, application development, and business process outsourcing. The company also markets proprietary software, industry-specific platforms, and the “Cognizant Moment” service, which leverages AI to redesign customer experiences and drive growth.
Key recent metrics: Cognizant reported FY 2023 revenue of approximately $19.7 billion, with AI and cloud services contributing a 12% year-over-year growth rate-outpacing the broader IT consulting sector, which is expanding at roughly 5% CAGR driven by digital transformation spending. The firm’s operating margin has been pressured to around 10% due to competitive pricing, but its backlog in AI-led automation projects suggests a potential upside as enterprises accelerate automation adoption. Macro-level, the sector benefits from sustained corporate IT capex growth and a talent shortage that favors large, diversified service providers capable of delivering end-to-end solutions.
For a deeper, data-driven assessment of Cognizant’s valuation and risk profile, you might explore the analytics available on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 9.0
| Net Income: 2.23b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 3.39 > 1.0 |
| NWC/Revenue: 23.18% < 20% (prev 19.86%; Δ 3.32% < -1%) |
| CFO/TA 0.14 > 3% & CFO 2.88b > Net Income 2.23b |
| Net Debt (-326.0m) to EBITDA (4.07b): -0.08 < 3 |
| Current Ratio: 2.34 > 1.5 & < 3 |
| Outstanding Shares: last quarter (482.0m) vs 12m ago -3.02% < -2% |
| Gross Margin: 33.05% > 18% (prev 0.34%; Δ 3271 % > 0.5%) |
| Asset Turnover: 103.8% > 50% (prev 98.85%; Δ 4.98% > 0%) |
| Interest Coverage Ratio: 95.03 > 6 (EBITDA TTM 4.07b / Interest Expense TTM 37.0m) |
Altman Z'' 7.88
| A: 0.24 (Total Current Assets 8.55b - Total Current Liabilities 3.66b) / Total Assets 20.69b |
| B: 0.73 (Retained Earnings 15.16b / Total Assets 20.69b) |
| C: 0.17 (EBIT TTM 3.52b / Avg Total Assets 20.33b) |
| D: 2.64 (Book Value of Equity 15.00b / Total Liabilities 5.68b) |
| Altman-Z'' Score: 7.88 = AAA |
Beneish M -2.99
| DSRI: 1.02 (Receivables 4.44b/4.06b, Revenue 21.11b/19.74b) |
| GMI: 1.04 (GM 33.05% / 34.34%) |
| AQI: 0.94 (AQ_t 0.51 / AQ_t-1 0.55) |
| SGI: 1.07 (Revenue 21.11b / 19.74b) |
| TATA: -0.03 (NI 2.23b - CFO 2.88b) / TA 20.69b) |
| Beneish M-Score: -2.99 (Cap -4..+1) = A |
What is the price of CTSH shares?
Over the past week, the price has changed by -10.02%, over one month by -12.50%, over three months by +2.81% and over the past year by -12.83%.
Is CTSH a buy, sell or hold?
- StrongBuy: 4
- Buy: 3
- Hold: 19
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the CTSH price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 91.8 | 23.1% |
| Analysts Target Price | 91.8 | 23.1% |
| ValueRay Target Price | 76.7 | 2.8% |
CTSH Fundamental Data Overview February 07, 2026
P/E Forward = 13.624
P/S = 1.757
P/B = 2.4648
P/EG = 1.3497
Revenue TTM = 21.11b USD
EBIT TTM = 3.52b USD
EBITDA TTM = 4.07b USD
Long Term Debt = 551.0m USD (from longTermDebt, two quarters ago)
Short Term Debt = 186.0m USD (from shortTermDebt, last quarter)
Debt = 1.57b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -326.0m USD (from netDebt column, last quarter)
Enterprise Value = 36.75b USD (37.09b + Debt 1.57b - CCE 1.91b)
Interest Coverage Ratio = 95.03 (Ebit TTM 3.52b / Interest Expense TTM 37.0m)
EV/FCF = 14.16x (Enterprise Value 36.75b / FCF TTM 2.60b)
FCF Yield = 7.06% (FCF TTM 2.60b / Enterprise Value 36.75b)
FCF Margin = 12.29% (FCF TTM 2.60b / Revenue TTM 21.11b)
Net Margin = 10.56% (Net Income TTM 2.23b / Revenue TTM 21.11b)
Gross Margin = 33.05% ((Revenue TTM 21.11b - Cost of Revenue TTM 14.13b) / Revenue TTM)
Gross Margin QoQ = 31.11% (prev 33.87%)
Tobins Q-Ratio = 1.78 (Enterprise Value 36.75b / Total Assets 20.69b)
Interest Expense / Debt = 0.51% (Interest Expense 8.00m / Debt 1.57b)
Taxrate = 26.61% (235.0m / 883.0m)
NOPAT = 2.58b (EBIT 3.52b * (1 - 26.61%))
Current Ratio = 2.34 (Total Current Assets 8.55b / Total Current Liabilities 3.66b)
Debt / Equity = 0.10 (Debt 1.57b / totalStockholderEquity, last quarter 15.02b)
Debt / EBITDA = -0.08 (Net Debt -326.0m / EBITDA 4.07b)
Debt / FCF = -0.13 (Net Debt -326.0m / FCF TTM 2.60b)
Total Stockholder Equity = 15.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.97% (Net Income 2.23b / Total Assets 20.69b)
RoE = 14.84% (Net Income TTM 2.23b / Total Stockholder Equity 15.02b)
RoCE = 22.57% (EBIT 3.52b / Capital Employed (Equity 15.02b + L.T.Debt 551.0m))
RoIC = 16.52% (NOPAT 2.58b / Invested Capital 15.62b)
WACC = 8.78% (E(37.09b)/V(38.66b) * Re(9.14%) + D(1.57b)/V(38.66b) * Rd(0.51%) * (1-Tc(0.27)))
Discount Rate = 9.14% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.91%
[DCF Debug] Terminal Value 74.17% ; FCFF base≈2.29b ; Y1≈2.14b ; Y5≈1.99b
Fair Price DCF = 64.91 (EV 30.77b - Net Debt -326.0m = Equity 31.09b / Shares 479.0m; r=8.78% [WACC]; 5y FCF grow -8.14% → 2.90% )
EPS Correlation: 63.74 | EPS CAGR: 6.13% | SUE: 0.72 | # QB: 0
Revenue Correlation: 79.62 | Revenue CAGR: 2.70% | SUE: 0.67 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.34 | Chg30d=-0.002 | Revisions Net=+5 | Analysts=18
EPS current Year (2026-12-31): EPS=5.66 | Chg30d=+0.041 | Revisions Net=+2 | Growth EPS=+7.2% | Growth Revenue=+6.0%
EPS next Year (2027-12-31): EPS=6.16 | Chg30d=+0.043 | Revisions Net=+3 | Growth EPS=+8.8% | Growth Revenue=+5.3%