CTSH
Cognizant Technology Solutions Corporation

Cognizant Technology Solutions CorporationCTSH

Technology · Information Technology Services
64.72USD
-2.74%
Nov 08, 2026
CTSH overview ready
Global technology integrator enabling enterprise AI workflow automation
Cognizant is a global technology-services integrator and managed-services provider.
Primary theme is leading
IT Services & Consulting is leading (+24.8pp vs SPY over 21 sessions; 12 of 12 members ahead of SPY).
Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of constructive pullback.
Fair valuation
The price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from other global IT services providers.
Market Nov 6Filing Sep 30Price action Nov 7Research Oct 17

Conviction Level

PriceAction8.3BusinessPerformance5.0BusinessQuality8.7Valuation5.5ThemeMomentum9.0Mixed — Revenue is growing at a steady pace (+4.6% year over year). Reported earnings improved faster than operating income, so most of the improvement did not come from operations. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+24.8pp
Theme return
+19.8%
Beating SPY
12 of 12
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of constructive pullback.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$28.9B
Avg Volume (60D)
6.8M
60 sessions
Revenue Growth YoY
+7.0%
FY2025 vs FY2024
Gross Margin
+30.4%
Trailing twelve months
Operating Margin
+15.7%
Trailing twelve months
Free Cash Flow Yield
+8.2%
Distance from 200DMA
+11.5%
P/E
11.2x
EV / EBITDA
7.2x
EV / Sales
1.3x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Mixed

Revenue is growing at a steady pace (+4.6% year over year). Reported earnings improved faster than operating income, so most of the improvement did not come from operations.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+4.6%
$5.66B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +4.9%
  2. +5.8%
  3. +4.5%
  4. +4.6%
Earnings growthAccelerating
+148%
Diluted EPS $1.39 vs $0.56 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +22%
  2. +3.7%
  3. +3.8%
  4. +148%
Operating marginStable
15.4%
-0.6 pp YoY
Earnings improved more than operations did
The comparison is against a weak year-ago quarter

Business Quality

8.7 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say fair; intrinsic is the dissenting view.
Cognizant Technology Solutions Corporation has a Fair valuation stance because the price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.

Company Research

Thesis
Cognizant is a global technology-services integrator and managed-services provider. Its exposure is through consulting, engineering, cloud/data modernization, application transformation, industry-specific platforms, and managed delivery that help clients implement and operate AI-enabled business workflows.
Opportunity
Moderate opportunity
Enterprise spending to move generative and agentic AI from pilots into production through data modernization, systems integration, workflow redesign, governance, security, and ongoing managed operations.
Key risk
Competition from other global IT services providers.

Economic classification

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Business & Markets

Technology · Information Technology Services
What they do

Cognizant Technology Solutions Corporation provides consulting, technology, and outsourcing services globally across multiple industries through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology.

How it earns

The company generates revenue primarily through project-based and managed services contracts involving consulting, application development, systems integration, and managed operations.

Products & services
Consulting services
Application development
Systems integration
AI and technology solutions
Managed services
Cloud and data modernization
Customers & end markets
Financial services companies
Health sciences organizations
Product and resource companies
Communications, media, and technology firms
Market position

Leader in global technology services and managed transformation with broad industry exposure.

Demand drivers
Medium cyclicality

Demand depends on enterprise IT budgets which can fluctuate with economic cycles but driven by ongoing digital transformation needs.

Peers

Companies validated as economically comparable to CTSH — similar business, revenue model and scale.
PRICE ACTIONVALUATIONTHEME
Infosys LimitedEarly Recovery — Failed ReclaimCheap6.0MediumUnavailableNot in RS poolLocked$12.50−2.34%
Accenture plcEarly Recovery — Daily AdvanceFair6.0MediumUnavailableNot in RS poolLocked$260.50−1.76%
CGI Inc.Early Recovery — Daily AdvanceCheap6.0MediumUnavailableNot in RS poolLocked$83.29+1.12%
EPAM Systems, Inc.Early Recovery — Daily AdvanceCheap6.0MediumUnavailableNot in RS poolLocked$159.31−3.86%
Globant S.A.Early Recovery — Daily ReclaimExpensive6.0MediumUnavailableNot in RS poolLocked$47.41−3.72%