CTSH
Cognizant Technology Solutions Corporation

Cognizant Technology Solutions CorporationCTSH

Technology · Information Technology Services
58.68USD
-1.18%
Sep 23, 2026
CTSH overview ready
Cognizant is a large enterprise technology-services enabler that consults on, designs, integrates and operates AI-enabled applications and workflows across regulated and industry-specific client environments.
Narrative is still early
Exposed to the Enterprise AI Adoption and Workflow Automation narrative through Enterprise AI Implementation and Agentic Workflow Integration — enabling supplier.
Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on client IT budgets and spending cycles.
Market Sep 22Filing Jun 30Price action Sep 22Research Sep 17

Conviction Level

NarrativeHeat7.9ThemeHeat6.2PriceAction9.1Valuation8.4CompanyPosition7.3
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
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
$26.4B
Avg Volume (60D)
7.8M
60 sessions
Revenue Growth YoY
+7.0%
FY2025 vs FY2024
Gross Margin
+30.7%
Trailing twelve months
Operating Margin
+15.9%
Trailing twelve months
Free Cash Flow Yield
+9.8%
Distance from 200DMA
-4.2%
Next Earnings
2026-10-28
P/E
11.9x
EV / EBITDA
6.7x
EV / Sales
1.2x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

All three valuation perspectives agree this company is cheap.
Cognizant Technology Solutions Corporation has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces.

Company Research

Thesis
Cognizant is a large enterprise technology-services enabler that consults on, designs, integrates and operates AI-enabled applications and workflows across regulated and industry-specific client environments. Its role is execution and change delivery rather than ownership of the underlying AI models, cloud capacity or software platforms.
Opportunity
Moderate opportunity
Enterprise budgets to move generative and agentic AI from pilots into governed production workflows, requiring data modernization, systems integration, process redesign, security controls and managed operations.
Key risk
Dependence on client IT budgets and spending cycles.

Narrative & Theme

Enterprise AI Adoption and Workflow Automation
Part of Enterprise AI Implementation and Agentic Workflow Integration, with moderate fit.
CTSH has a real and current exposure to enterprise AI implementation: its services span AI and data strategy, readiness, engineering and agentic-AI adoption planning, supported by a broad partner ecosystem.
Narrative HeatHeating up7.9 / 10
Theme HeatNeutral6.2 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Technology · Information Technology Services
What they do

Cognizant Technology Solutions Corporation provides consulting, technology, and outsourcing services across multiple industries globally, operating through four main 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 contract-based service engagements.

Products & services
Consulting services
Application development
Systems integration
Quality engineering and assurance
Engineering research and development
Application maintenance
Artificial intelligence and technology solutions
Customers & end markets
Financial services companies
Health sciences organizations
Product and resource companies
Communications, media, and technology firms
Market position

Leader in global IT services and consulting with a diversified industry presence.

Demand drivers
Medium cyclicality

Business depends on corporate IT spending which can fluctuate with economic cycles but includes long-term contracts providing some stability.