CTSH Stock Analysis: Cognizant Technology | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 18.934m USD | 12M Return: -47.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 576M
EPS Trend: 98.5%
Qual. Beats: 1
Rev. Trend: 91.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality
Cognizant Technology Solutions Corporation (NASDAQ: CTSH) is a professional services company headquartered in Teaneck, New Jersey, incorporated in 1988. The company operates across four reporting segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology, serving clients in North America, Europe, and other international markets.
Cognizants service portfolio spans consulting, technology, and outsourcing, with offerings including AI and automation solutions, application development, systems integration, infrastructure, security, and business process services. Its dedicated AI-led automation practice delivers advisory and process/IT automation services, while its Cognizant Moment platform applies AI to customer experience design. The company also develops and licenses proprietary and third-party software products.
The firm serves a broad range of industries, including healthcare providers and payers, life sciences firms, banking and capital markets, insurance, manufacturing, retail, travel and hospitality, communications, media, and energy/utilities. Cognizant maintains a strategic partnership with Uniphore Technologies to develop AI solutions combining small language models and AI agents.
As an IT consulting and outsourcing provider, Cognizant competes in a labor-intensive segment of the broader IT services industry that is characterized by long-term client contracts and global delivery models. The companys offerings are typically structured around client engagements that blend onshore and offshore resources, a delivery approach common among large-scale IT services firms.
- Financial Services segment revenue growth accelerates on BFSI demand
- AI services bookings drive digital transformation revenue
- Indian wage inflation pressures operating margins
| Net Income: 2.23b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 1.36 > 1.0 |
| NWC/Revenue: 20.16% < 20% (prev 20.60%; Δ -0.44% < -1%) |
| CFO/TA 0.13 > 3% & CFO 2.76b > Net Income 2.23b |
| Net Debt (99.0m) to EBITDA (4.06b): 0.02 < 3 |
| Current Ratio: 2.23 > 1.5 & < 3 |
| Outstanding Shares: last quarter (477.0m) vs 12m ago -3.64% < -2% |
| Gross Margin: 32.06% > 18% (prev 34.25%; Δ -2.19% > 0.5%) |
| Asset Turnover: 105.8% > 50% (prev 100.6%; Δ 5.17% > 0%) |
| Interest Coverage Ratio: 109.7 > 6 (EBIT TTM 3.51b / Interest Expense TTM 32.0m) |
| A: 0.21 (Total Current Assets 7.83b - Total Current Liabilities 3.52b) / Total Assets 20.5b |
| B: 0.74 (Retained Earnings 15.3b / Total Assets 20.5b) |
| C: 0.17 (EBIT TTM 3.51b / Avg Total Assets 20.2b) |
| D: 2.77 (Book Value of Equity 15.1b / Total Liabilities 5.43b) |
| Altman-Z'' = 7.89 = AAA |
| DSRI: 1.02 (Receivables 4.61b/4.24b, Revenue 21.4b/20.1b) |
| GMI: 1.07 (GM 34.25% / 32.06%) |
| AQI: 1.00 (AQ_t 0.54 / AQ_t-1 0.54) |
| SGI: 1.07 (Revenue 21.4b / 20.1b) |
| TATA: -0.03 (NI 2.23b - CFO 2.76b) / TA 20.5b) |
| Beneish M = -2.90 (Cap -4..+1) = A |
As of June 30, 2026, the stock is trading at USD 40.03 with a total of 13,559,324 shares traded. Over the past week, the price has changed by -8.40%, over one month by -25.66%, over three months by -33.98% and over the past year by -47.62%.
Current recommended Stop Loss: 36.90 (which is 7.8% or 1.3 ATR below the current price).
Cognizant Technology has received a consensus analysts rating of 3.33. Therefore, it is recommended to hold CTSH.
- StrongBuy: 4
- Buy: 3
- Hold: 19
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 68.8 | 71.8% |
P/E Trailing = 8.6833
P/E Forward = 6.8587
P/S = 0.8845
P/B = 1.229
P/EG = 0.6408
Revenue TTM = 21.4b USD
EBIT TTM = 3.51b USD
EBITDA TTM = 4.06b USD
Long Term Debt = 535.0m USD (from longTermDebt, last quarter)
Short Term Debt = 173.0m USD (from shortTermDebt, last quarter)
Debt = 1.62b USD (from shortLongTermDebtTotal, last quarter) + Leases 524.0m
Net Debt = 99.0m USD (calculated: Debt 1.62b - CCE 1.52b)
Enterprise Value = 19.0b USD (18.9b + Debt 1.62b - CCE 1.52b)
Interest Coverage Ratio = 109.7 (Ebit TTM 3.51b / Interest Expense TTM 32.0m)
EV/FCF = 7.71x (Enterprise Value 19.0b / FCF TTM 2.47b)
FCF Yield = 12.98% (FCF TTM 2.47b / Enterprise Value 19.0b)
FCF Margin = 11.54% (FCF TTM 2.47b / Revenue TTM 21.4b)
Net Margin = 10.41% (Net Income TTM 2.23b / Revenue TTM 21.4b)
Gross Margin = 32.06% ((Revenue TTM 21.4b - Cost of Revenue TTM 14.5b) / Revenue TTM)
Gross Margin QoQ = 29.63% (prev 31.11%)
Tobins Q-Ratio = 0.93 (Enterprise Value 19.0b / Total Assets 20.5b)
Interest Expense / Debt = 1.98% (Interest Expense 32.0m / Debt 1.62b)
Taxrate = 35.99% (1.25b / 3.48b)
NOPAT = 2.25b (EBIT 3.51b * (1 - 35.99%))
Current Ratio = 2.23 (Total Current Assets 7.83b / Total Current Liabilities 3.52b)
Debt / Equity = 0.11 (Debt 1.62b / totalStockholderEquity, last quarter 15.1b)
Debt / EBITDA = 0.02 (Net Debt 99.0m / EBITDA 4.06b)
Debt / FCF = 0.04 (Net Debt 99.0m / FCF TTM 2.47b)
Total Stockholder Equity = 15.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.02% (Net Income 2.23b / Total Assets 20.5b)
RoE = 14.79% (Net Income TTM 2.23b / Total Stockholder Equity 15.1b)
RoCE = 22.49% (EBIT 3.51b / Capital Employed (Equity 15.1b + L.T.Debt 535.0m))
RoIC = 13.97% (NOPAT 2.25b / Invested Capital 16.1b)
WACC = 7.84% (E(18.9b)/V(20.6b) * Re(8.40%) + D(1.62b)/V(20.6b) * Rd(1.98%) * (1-Tc(0.36)))
Discount Rate = 8.40% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.39 | Cagr: -2.16%
[DCF] Terminal Value 77.97% ; FCFF base≈2.34b ; Y1≈2.68b ; Y5≈3.94b
[DCF] Fair Price = 125.2 (EV 59.3b - Net Debt 99.0m = Equity 59.2b / Shares 473.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.46 | EPS CAGR: 8.81% | SUE: 1.58 | # QB: 1
Revenue Correlation: 91.09 | Revenue CAGR: 3.98% | SUE: 0.03 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.38 | Chg30d=-0.06% | Revisions=-76% | Analysts=23
EPS next Quarter (2026-09-30): EPS=1.46 | Chg30d=-0.05% | Revisions=-25% | Analysts=23
EPS current Year (2026-12-31): EPS=5.70 | Chg30d=+0.15% | Revisions=+70% | GrowthEPS=+7.9% | GrowthRev=+5.7%
EPS next Year (2027-12-31): EPS=6.18 | Chg30d=+0.37% | Revisions=+48% | GrowthEPS=+8.6% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: -76%