Overview Dividends

(CTSH) Cognizant Technology - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US1924461023

Consulting, Outsourcing, Ai, Cloud

IT Consulting & Other Services
Market Cap in USD: 41,714m

IPO / Inception: 1998-06-19
Return 12m vs S&P 500: -6.29%

EPS (Earnings per Share)

EPS CAGR: 6.44%
EPS Trend: 58.7%

Last SUE: 2.19
Qual. Beats: 2

Revenue

Rev. CAGR: 3.40%
Rev. Trend: 76.0%

Last SUE: 3.47
Qual. Beats: 3

Dividends

Dividend Yield	1.45%
Yield on Cost 5y	1.65%
Yield CAGR 5y	8.06%
Payout Consistency	99.4%
Payout Ratio	24.1%

Risk via 5d forecast
Volatility	21.7%
Value at Risk 5%th	33.6%
Relative Tail Risk	-5.75%

Reward TTM
Sharpe Ratio	0.31
Alpha	-5.29
CAGR/Max DD	0.61

Character TTM
Hurst Exponent	0.510
Beta	0.843
Beta Downside	0.875

Drawdowns 3y
Max DD	26.97%
Mean DD	9.32%
Median DD	8.05%

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) 7.5

Net Income (2.13b TTM) > 0 and > 6% of Revenue (6% = 1.25b TTM)

FCFTA 0.13 (>2.0%) and ΔFCFTA 4.99pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 22.35% (prev 21.43%; Δ 0.92pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.15 (>3.0%) and CFO 2.94b > Net Income 2.13b (YES >=105%, WARN >=100%)

Net Debt (-1.17b) to EBITDA (3.94b) ratio: -0.30 <= 3.0 (WARN <= 3.5)

Current Ratio 2.36 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (487.0m) change vs 12m ago -1.81% (target <= -2.0% for YES)

Gross Margin 34.06% (prev 34.36%; Δ -0.30pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 103.5% (prev 96.27%; Δ 7.24pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 70.60 (EBITDA TTM 3.94b / Interest Expense TTM 48.0m) >= 6 (WARN >= 3)

Altman Z'' 8.05

(A) 0.23 = (Total Current Assets 8.09b - Total Current Liabilities 3.43b) / Total Assets 20.13b

(B) 0.74 = Retained Earnings (Balance) 14.94b / Total Assets 20.13b

(D) 2.84 = Book Value of Equity 14.88b / Total Liabilities 5.24b

Total Rating: 8.05 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 71.09

1. Piotroski 7.50pt

2. FCF Yield 6.54%

3. FCF Margin 12.71%

4. Debt/Equity 0.08

5. Debt/Ebitda -0.30

6. ROIC - WACC (= -2.14)%

7. RoE 14.31%

8. Rev. Trend 75.98%

9. EPS Trend 58.70%

What is the price of CTSH shares?

As of December 28, 2025, the stock is trading at USD 85.57 with a total of 1,612,922 shares traded.
Over the past week, the price has changed by +0.19%, over one month by +11.06%, over three months by +28.31% and over the past year by +8.84%.

Is CTSH a buy, sell or hold?

Cognizant Technology has received a consensus analysts rating of 3.33. Therefor, it is recommend to hold CTSH.

Strong Buy: 4
Buy: 3
Hold: 19
Sell: 0
Strong Sell: 1

What are the forecasts/targets for the CTSH price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	86	0.5%
Analysts Target Price	86	0.5%
ValueRay Target Price	88.7	3.6%

CTSH Fundamental Data Overview December 28, 2025

Market Cap USD = 41.71b (41.71b USD * 1.0 USD.USD)
P/E Trailing = 19.7708
P/E Forward = 14.881
P/S = 2.0
P/B = 2.7137
P/EG = 1.4743
Beta = 0.967
Revenue TTM = 20.86b USD
EBIT TTM = 3.39b USD
EBITDA TTM = 3.94b USD
Long Term Debt = 551.0m USD (from longTermDebt, last quarter)
Short Term Debt = 187.0m USD (from shortTermDebt, last quarter)
Debt = 1.17b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.17b USD (from netDebt column, last quarter)
Enterprise Value = 40.53b USD (41.71b + Debt 1.17b - CCE 2.35b)
Interest Coverage Ratio = 70.60 (Ebit TTM 3.39b / Interest Expense TTM 48.0m)
FCF Yield = 6.54% (FCF TTM 2.65b / Enterprise Value 40.53b)
FCF Margin = 12.71% (FCF TTM 2.65b / Revenue TTM 20.86b)
Net Margin = 10.20% (Net Income TTM 2.13b / Revenue TTM 20.86b)
Gross Margin = 34.06% ((Revenue TTM 20.86b - Cost of Revenue TTM 13.75b) / Revenue TTM)
Gross Margin QoQ = 33.87% (prev 33.67%)
Tobins Q-Ratio = 2.01 (Enterprise Value 40.53b / Total Assets 20.13b)
Interest Expense / Debt = 0.68% (Interest Expense 8.00m / Debt 1.17b)
Taxrate = 69.11% (613.0m / 887.0m)
NOPAT = 1.05b (EBIT 3.39b * (1 - 69.11%))
Current Ratio = 2.36 (Total Current Assets 8.09b / Total Current Liabilities 3.43b)
Debt / Equity = 0.08 (Debt 1.17b / totalStockholderEquity, last quarter 14.90b)
Debt / EBITDA = -0.30 (Net Debt -1.17b / EBITDA 3.94b)
Debt / FCF = -0.44 (Net Debt -1.17b / FCF TTM 2.65b)
Total Stockholder Equity = 14.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.57% (Net Income 2.13b / Total Assets 20.13b)
RoE = 14.31% (Net Income TTM 2.13b / Total Stockholder Equity 14.87b)
RoCE = 21.97% (EBIT 3.39b / Capital Employed (Equity 14.87b + L.T.Debt 551.0m))
RoIC = 6.73% (NOPAT 1.05b / Invested Capital 15.54b)
WACC = 8.88% (E(41.71b)/V(42.88b) * Re(9.12%) + D(1.17b)/V(42.88b) * Rd(0.68%) * (1-Tc(0.69)))
Discount Rate = 9.12% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.41%
[DCF Debug] Terminal Value 73.31% ; FCFE base≈2.25b ; Y1≈2.11b ; Y5≈1.96b
Fair Price DCF = 60.24 (DCF Value 29.07b / Shares Outstanding 482.6m; 5y FCF grow -8.14% → 3.0% )
EPS Correlation: 58.70 | EPS CAGR: 6.44% | SUE: 2.19 | # QB: 2
Revenue Correlation: 75.98 | Revenue CAGR: 3.40% | SUE: 3.47 | # QB: 3
EPS next Quarter (2026-03-31): EPS=1.34 | Chg30d=+0.000 | Revisions Net=+8 | Analysts=19
EPS next Year (2026-12-31): EPS=5.61 | Chg30d=+0.003 | Revisions Net=+1 | Growth EPS=+6.9% | Growth Revenue=+4.7%

Additional Sources for CTSH Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle