Cognizant Technology Solutions Corp (CTSH)
Information Technology · IT Consulting & Other Services · US stock · S&P 500 component
$70.54
▼ -3.18 (4.31%)
Fair valueUndervalued
$89 +20.4% to fair value
$44fair band $76–$108$133
Day's range
$69.62 – $72.83
52-week range
$37.08 – $87.03
About Cognizant Technology Solutions Corp
Cognizant Technology Solutions is an information technology services company. It helps clients modernize systems, build software, run cloud and data projects, and operate business processes, with much of its delivery work carried out by teams in India and other locations. Customers are mostly in financial services, health care, retail and manufacturing. Revenue comes from fees for consulting, project work and multi-year outsourcing contracts, usually billed on time and materials or fixed terms.
Sales reached $21.4 billion in the last twelve months, having grown 2.8% a year over the past three years. Operating profit equals 15.8% of revenue. Return on invested capital is 17%. Net debt to EBITDA is -0.2 times, which means the company holds more cash than debt. It pays a dividend, and the yield is 1.8%. Overall, the X-Ray Score is 63 out of 100.
Price chart
52-wk range $37.08 – $87.03Volume 6,347,826Daily, split-adjusted
Vitals
Market cap$33.6B
52-week range$37.08 – $87.03
Volume (last day)6,347,826
P/E (TTM)15.4
EBIT / EV yield9.9%
Free-cash-flow yield7.0%
Dividend yield1.8%
Revenue (TTM)$21.4B
Net income (TTM)$2.2B
Operating margin15.8%
Return on capital16.8%
Debt incl. leases$568M
Cash & securities$1.5B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$89middle half of models $84 – $99
Undervalued
+20.4% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $71
Undervalued < $76Fair $76 – $108Overvalued > $108
P/E multiple
$74
P/B multiple
$85
P/S multiple
$85
EV/EBITDA multiple
$85
EV/EBIT multiple
$85
EV/revenue multiple
$84
10-year DCF, EBITDA exit
$99
5-year DCF, EBITDA exit
$91
10-year DCF, revenue exit
$99
5-year DCF, revenue exit
$91
10-year DCF, growth exit
$105
5-year DCF, growth exit
$99
Dividend discount, stable
$48
Dividend discount, multi-stage
$83
Earnings power value
$120
Growth the price implies
4.4%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business at a low price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
91/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield9.9%
Free-cash-flow yield7.0%
Fair value vs price1.2×
Growth
Weak
26/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)2.8%
EPS growth (3y)1.1%
Growth consistency70%
Profitability
Fair
50/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital16.8%
Operating margin15.8%
Financial health
Strong
86/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA-0.2×
Interest coverNo interest cost
Dividends
Fair
50/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.8%
Dividends vs free cash flow25%
Dividend growth2.6%
Quarterly results: last 6 quarters
+6.8%
Dec '24
+7.5%
Mar '25
+8.1%
Jun '25
+7.4%
Sep '25
+4.9%
Dec '25
+5.8%
Mar '26
Revenue against the same quarter a year earlier. Latest quarter revenue $5.4B, diluted EPS $1.39.
Compare with peers
ACN Accenture plc62 IT Gartner Inc59 IBM International Business...43Other IT Consulting & Other Services companies by X-Ray Score.
SWOT analysis: Cognizant Technology Solutions Corp
Strengthsinside the company
- Free cash flow equals 7.0% of the market value, which funds dividends, buybacks or debt paydown.
- Cash exceeds debt (net debt is negative), which gives room to invest or ride out a downturn.
- Operating profit covers interest 106x, so debt costs are a small drag.
- Passes 8 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Revenue growth picked up to 7.0% last year from 2.8% a year over three years.
- Dividends use only 25% of free cash flow, which leaves room to raise them.
- Trades at 15.8x earnings, 22% below the 20.1x median of industry peers.
- The price is 20% below our fair value estimate, with the gap larger than the margin we allow for error.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare CTSH with peers and sector
Medians of 3 IT Consulting & Other Services peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): IBM 43, ACN 62, IT 59.
| Metric | CTSH | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 63 | 59 | 50 |
| Valuation | 91 | 86 | 50 |
| Growth | 26 | 38 | 54 |
| Profitability | 50 | 62 | 49 |
| Financial health | 85 | 36 | 49 |
| Dividends | 50 | – | 51 |
Sector leaders: highest X-Ray Score in Information Technology
CTSH ranks #10 of 75 in Information Technology and #1 of 4 in IT Consulting & Other Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for CTSH
Each factor is rated by where CTSH stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 9 Good · 5 Average · 7 Bad of 21
Growth: 0 · 1 · 2
Profitability: 0 · 3 · 1
Financial strength: 4 · 0 · 0
Valuation: 5 · 0 · 0
Cash flow: 0 · 1 · 3
Efficiency: 0 · 0 · 1
| Factor | CTSH | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +2.8% | Bad beats 25% | +9.7% | – | – |
| Revenue growth, last year | +7.0% | Bad beats 21% | +13.7% | +5.0% | ≈ In line |
| EPS growth, 3 years a year | +1.1% | Average beats 39% | +5.9% | – | – |
| Profitability | |||||
| Operating margin | 15.8% | Average beats 37% | 20.3% | 15.3% | ≈ In line |
| Net margin | 10.4% | Bad beats 27% | 17.8% | 11.3% | ≈ In line |
| Return on invested capital | 16.8% | Average beats 42% | 19.4% | – | – |
| Return on equity | 14.8% | Average beats 34% | 21.0% | 16.1% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | -0.2x | Good beats 85% | 0.8x | -0.5x | ≈ In line |
| Interest cover | 105.6x | Good beats 91% | 23.0x | 50.0x | ▲ Better |
| Current ratio | 2.23 | Good beats 70% | 1.57 | 2.14 | ≈ In line |
| Piotroski F-score | 8 / 9 | Good beats 89% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 15.8x | Good beats 90% | 33.6x | 17.9x | ▲ Better |
| Price / book | 2.3x | Good beats 95% | 8.3x | 2.7x | ▲ Better |
| Price / sales | 1.6x | Good beats 93% | 6.9x | 1.9x | ≈ In line |
| EV / EBITDA | 8.7x | Good beats 94% | 24.7x | 10.7x | ▲ Better |
| Free cash flow yield | 7.0% | Good beats 88% | 3.4% | 5.3% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 11.5% | Bad beats 18% | 22.3% | 11.5% | ≈ In line |
| Cash from operations / net income | 1.24 | Average beats 37% | 1.39 | 1.12 | ▲ Better |
| Free cash flow growth, 3 years a year | +5.1% | Bad beats 30% | +15.4% | – | – |
| Accruals (lower is better) | −2.6% | Bad beats 31% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 79 days | Bad beats 26% | 63 days | 73 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 8 Good · ● 3 Average · ● 4 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioGood
Net debt / EBITDAGood
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 59/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $18.5B | $19.4B | $19.4B | $19.7B | $21.1B |
| Operating income | $2.8B | $3.0B | $2.7B | $2.9B | $3.4B |
| Net income | $2.1B | $2.3B | $2.1B | $2.2B | $2.2B |
| Operating cash flow | $2.5B | $2.6B | $2.3B | $2.1B | $2.9B |
| Operating margin | 15.3% | 15.3% | 13.9% | 14.7% | 16.1% |
| Free cash flow | $2.2B | $2.2B | $2.0B | $1.8B | $2.6B |
| Diluted EPS | $4.05 | $4.41 | $4.21 | $4.51 | $4.56 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 66.41 | Bullish |
| EMA 10 | 67.17 | Bullish |
| SMA 20 | 62.31 | Bullish |
| EMA 20 | 64.35 | Bullish |
| SMA 50 | 61.50 | Bullish |
| EMA 50 | 60.84 | Bullish |
| SMA 100 | 54.72 | Bullish |
| EMA 100 | 58.65 | Bullish |
| SMA 200 | 58.93 | Bullish |
| EMA 200 | 59.85 | Bullish |
Oscillators (daily)
| RSI (14) | 67.75 | Neutral |
| MACD (12, 26) | 3.00 | Bullish |
| Momentum (12) | 23.60 | Bullish |
| Stochastic %K (14) | 82.50 | Bearish |
| Williams %R (14) | -17.50 | Bearish |
| CCI (20) | 137.3 | Bearish |
Pivot points (classic, last session)
S3 65.95 | S2 67.79 | S1 69.16 | Pivot 71.00 | R1 72.37 | R2 74.21 | R3 75.58 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.30 USD
Yield on today's price
1.84%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.3300 | |
| 0.3300 | |
| 0.3300 | |
| 0.3100 | |
| 0.3100 | |
| 0.3100 | |
| 0.3100 | |
| 0.3000 | |
| 0.3000 | |
| 0.3000 | |
| 0.3000 | |
| 0.2900 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold CTSH
| ETF | Share of the fund |
|---|---|
| DIVB iShares U.S. Dividend and Buyback | 2.38% |
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.46% |
| RDVI FT Cboe Vest Rising Dividend Achievers... | 1.18% |
| ROUS Hartford Multifactor US Equity | 0.85% |
| RDVY First Trust Rising Dividend Achievers | 0.82% |
| COWZ Pacer US Cash Cows 100 | 0.77% |
| TDIV First Trust NASDAQ Technology Dividend... | 0.63% |
| XSW SPDR S&P Software & Services | 0.55% |
The eight funds with the largest weight in CTSH among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
CTSH stock splits
CTSH has split its stock 5 times since 2000. The latest was a 2-for-1 split on 10 Mar 2014.
Full CTSH stock split history →CTSH SEC filings
8-KSEC EDGAR
Entered a material agreement
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Shareholder vote results
8-KSEC EDGAR
Current report
8-KSEC EDGAR
Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.