CTSH Stock Analysis: Cognizant Technology | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 27.423m USD | 12M Return: -14.1% | US1924461023 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 362M
EPS Trend: 98.8%
Qual. Beats: 0
Rev. Trend: 95.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Cognizant Technology Solutions Corporation (NASDAQ: CTSH) is a U.S.-based professional services firm that delivers consulting, technology, and outsourcing services to clients across North America, Europe, and other international markets. The company is headquartered in Teaneck, New Jersey, was incorporated in 1988, and went public in 1998. As a large-cap Information Technology company in the IT Consulting & Other Services sub-industry, it competes in the global IT services market alongside other major consultancies and systems integrators.
The company operates through four reportable segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. Its service portfolio spans AI and other technology solutions, consulting, application development, systems integration, quality engineering, R&D, application maintenance, infrastructure, security, and business process services. Cognizant also offers AI-led automation, business process outsourcing, and its Cognizant Moment digital experience platform, which uses AI to redesign customer interactions. These offerings reflect the broader shift in IT services toward digital transformation, AI integration, and outcome-based delivery models.
Cognizant serves a diversified client base that includes healthcare providers, payers, life sciences firms, banks, capital markets, payments, and insurance companies, as well as manufacturers, automakers, retailers, consumer goods businesses, travel and hospitality, communications, media, entertainment, education, information services, technology companies, and businesses in logistics, energy, and utilities. In addition to its services, the company develops, licenses, implements, and supports both proprietary and third-party software products and platforms, including industry-specific solutions. It has also formed a strategic partnership with Uniphore Technologies Inc. to develop AI solutions that combine small language models and AI agents, highlighting the growing role of partnerships in scaling enterprise AI capabilities within the IT services sector.
- AI services demand drives enterprise bookings growth
- Financial Services segment softness pressures revenue outlook
- Operating margins expand on automation and delivery mix shifts
| Net Income: 2.22b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 1.16 > 1.0 |
| NWC/Revenue: 18.92% < 20% (prev 21.72%; Δ -2.80% < -1%) |
| CFO/TA 0.14 > 3% & CFO 2.92b > Net Income 2.22b |
| Net Debt (1.58b) to EBITDA (4.11b): 0.38 < 3 |
| Current Ratio: 2.18 > 1.5 & < 3 |
| Outstanding Shares: last quarter (466.0m) vs 12m ago -5.28% < -2% |
| Gross Margin: 32.00% > 18% (prev 34.18%; Δ -2.18% > 0.5%) |
| Asset Turnover: 105.6% > 50% (prev 101.6%; Δ 4.00% > 0%) |
| Interest Coverage Ratio: 98.50 > 6 (EBIT TTM 3.55b / Interest Expense TTM 36.0m) |
| A: 0.20 (Total Current Assets 7.56b - Total Current Liabilities 3.46b) / Total Assets 20.8b |
| B: 0.70 (Retained Earnings 14.6b / Total Assets 20.8b) |
| C: 0.17 (EBIT TTM 3.55b / Avg Total Assets 20.5b) |
| D: 2.27 (Book Value of Equity 14.5b / Total Liabilities 6.36b) |
| Altman-Z'' = 7.13 = AAA |
| DSRI: 1.03 (Receivables 4.78b/4.40b, Revenue 21.6b/20.5b) |
| GMI: 1.07 (GM 34.18% / 32.00%) |
| AQI: 1.03 (AQ_t 0.56 / AQ_t-1 0.55) |
| SGI: 1.06 (Revenue 21.6b / 20.5b) |
| TATA: -0.03 (NI 2.22b - CFO 2.92b) / TA 20.8b) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of October 08, 2026, the stock is trading at USD 57.07 with a total of 5,152,376 shares traded. Over the past week, the price has changed by -0.64%, over one month by -4.76%, over three months by +30.64% and over the past year by -14.10%.
Current recommended Stop Loss: 51.30 (which is 10.1% or 2.5 ATR below the current price).
Cognizant Technology has received a consensus analysts rating of 3.79. Therefore, it is recommended to hold CTSH.
- StrongBuy: 10
- Buy: 3
- Hold: 16
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 65.1 | 14.1% |
P/E Trailing = 13.0644
P/E Forward = 9.4073
P/S = 1.2671
P/B = 1.8277
P/EG = 0.8549
Revenue TTM = 21.6b USD
EBIT TTM = 3.55b USD
EBITDA TTM = 4.11b USD
Long Term Debt = 1.53b USD (from longTermDebt, last quarter)
Short Term Debt = 178.0m USD (from shortTermDebt, last quarter)
Debt = 2.63b USD (from shortLongTermDebtTotal, last quarter) + Leases 534.0m
Net Debt = 1.58b USD (calculated: Debt 2.63b - CCE 1.05b)
Enterprise Value = 29.0b USD (27.4b + Debt 2.63b - CCE 1.05b)
Interest Coverage Ratio = 98.50 (Ebit TTM 3.55b / Interest Expense TTM 36.0m)
EV/FCF = 11.16x (Enterprise Value 29.0b / FCF TTM 2.60b)
FCF Yield = 8.96% (FCF TTM 2.60b / Enterprise Value 29.0b)
FCF Margin = 12.00% (FCF TTM 2.60b / Revenue TTM 21.6b)
Net Margin = 10.26% (Net Income TTM 2.22b / Revenue TTM 21.6b)
Gross Margin = 32.00% ((Revenue TTM 21.6b - Cost of Revenue TTM 14.7b) / Revenue TTM)
Gross Margin QoQ = 33.37% (prev 29.63%)
Tobins Q-Ratio = 1.39 (Enterprise Value 29.0b / Total Assets 20.8b)
Interest Expense / Debt = 1.37% (Interest Expense 36.0m / Debt 2.63b)
Taxrate = 36.61% (1.29b / 3.52b)
NOPAT = 2.25b (EBIT 3.55b * (1 - 36.61%))
Current Ratio = 2.18 (Total Current Assets 7.56b / Total Current Liabilities 3.46b)
Debt / Equity = 0.18 (Debt 2.63b / totalStockholderEquity, last quarter 14.5b)
Debt / EBITDA = 0.38 (Net Debt 1.58b / EBITDA 4.11b)
Debt / FCF = 0.61 (Net Debt 1.58b / FCF TTM 2.60b)
Total Stockholder Equity = 14.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.83% (Net Income 2.22b / Total Assets 20.8b)
RoE = 14.94% (Net Income TTM 2.22b / Total Stockholder Equity 14.9b)
RoCE = 21.64% (EBIT 3.55b / Capital Employed (Equity 14.9b + L.T.Debt 1.53b))
RoIC = 13.63% (NOPAT 2.25b / Invested Capital 16.5b)
WACC = 6.69% (E(27.4b)/V(30.1b) * Re(7.25%) + D(2.63b)/V(30.1b) * Rd(1.37%) * (1-Tc(0.37)))
Discount Rate = 7.25% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.59 | Cagr: -2.91%
[DCF] Terminal Value 77.79% ; FCFF base≈2.47b ; Y1≈2.81b ; Y5≈4.03b
[DCF] Fair Price = 131.3 (EV 60.7b - Net Debt 1.58b = Equity 59.2b / Shares 450.4m; r=8.35% [WACC [floored]]; 5y FCF grow 13.85% → 2.50% )
EPS Correlation: 98.81 | EPS CAGR: 8.59% | SUE: -0.38 | # QB: 0
Revenue Correlation: 95.00 | Revenue CAGR: 4.71% | SUE: 0.00 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.47 | Chg30d=+0.09% | Revisions=-5% | Analysts=22
EPS current Year (2026-12-31): EPS=5.74 | Chg30d=+0.12% | Revisions=+62% | GrowthEPS=+8.8% | GrowthRev=+5.1%
EPS next Year (2027-12-31): EPS=6.33 | Chg30d=+0.27% | Revisions=+67% | GrowthEPS=+10.2% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: +30% (up=20, down=10)