(CTSH) Cognizant Technology - Overview
Stock: Consulting, Outsourcing, Ai, Cloud
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.60% |
| Yield on Cost 5y | 1.77% |
| Yield CAGR 5y | 6.61% |
| Payout Consistency | 99.5% |
| Payout Ratio | 31.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 40.9% |
| Relative Tail Risk | -6.41% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.24 |
| Alpha | -19.35 |
| Character TTM | |
|---|---|
| Beta | 0.887 |
| Beta Downside | 0.893 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.97% |
| CAGR/Max DD | 0.25 |
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) 8.5
| Net Income: 2.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 4.99 > 1.0 |
| NWC/Revenue: 22.35% < 20% (prev 21.43%; Δ 0.92% < -1%) |
| CFO/TA 0.15 > 3% & CFO 2.94b > Net Income 2.13b |
| Net Debt (-1.17b) to EBITDA (3.94b): -0.30 < 3 |
| Current Ratio: 2.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (487.0m) vs 12m ago -1.81% < -2% |
| Gross Margin: 34.06% > 18% (prev 0.34%; Δ 3371 % > 0.5%) |
| Asset Turnover: 103.5% > 50% (prev 96.27%; Δ 7.24% > 0%) |
| Interest Coverage Ratio: 70.60 > 6 (EBITDA TTM 3.94b / Interest Expense TTM 48.0m) |
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 14.94b / Total Assets 20.13b) |
| C: 0.17 (EBIT TTM 3.39b / Avg Total Assets 20.15b) |
| D: 2.84 (Book Value of Equity 14.88b / Total Liabilities 5.24b) |
| Altman-Z'' Score: 8.05 = AAA |
Beneish M -3.06
| DSRI: 0.97 (Receivables 4.39b/4.21b, Revenue 20.86b/19.41b) |
| GMI: 1.01 (GM 34.06% / 34.36%) |
| AQI: 0.95 (AQ_t 0.52 / AQ_t-1 0.55) |
| SGI: 1.07 (Revenue 20.86b / 19.41b) |
| TATA: -0.04 (NI 2.13b - CFO 2.94b) / TA 20.13b) |
| Beneish M-Score: -3.06 (Cap -4..+1) = AA |
What is the price of CTSH shares?
Over the past week, the price has changed by -6.80%, over one month by -5.87%, over three months by +3.37% and over the past year by -6.60%.
Is CTSH a buy, sell or hold?
- StrongBuy: 4
- Buy: 3
- Hold: 19
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the CTSH price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 91.4 | 18.9% |
| Analysts Target Price | 91.4 | 18.9% |
| ValueRay Target Price | 79.3 | 3.1% |
CTSH Fundamental Data Overview February 01, 2026
P/E Forward = 14.6628
P/S = 1.9216
P/B = 2.6713
P/EG = 1.4513
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 = 38.89b USD (40.08b + Debt 1.17b - CCE 2.35b)
Interest Coverage Ratio = 70.60 (Ebit TTM 3.39b / Interest Expense TTM 48.0m)
EV/FCF = 14.67x (Enterprise Value 38.89b / FCF TTM 2.65b)
FCF Yield = 6.82% (FCF TTM 2.65b / Enterprise Value 38.89b)
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 = 1.93 (Enterprise Value 38.89b / Total Assets 20.13b)
Interest Expense / Debt = 0.68% (Interest Expense 8.00m / Debt 1.17b)
Taxrate = 24.14% (713.0m / 2.95b)
NOPAT = 2.57b (EBIT 3.39b * (1 - 24.14%))
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 = 10.56% (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 = 16.54% (NOPAT 2.57b / Invested Capital 15.54b)
WACC = 8.93% (E(40.08b)/V(41.25b) * Re(9.18%) + D(1.17b)/V(41.25b) * Rd(0.68%) * (1-Tc(0.24)))
Discount Rate = 9.18% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.41%
[DCF Debug] Terminal Value 73.62% ; FCFF base≈2.25b ; Y1≈2.11b ; Y5≈1.95b
Fair Price DCF = 63.58 (EV 29.51b - Net Debt -1.17b = Equity 30.69b / Shares 482.6m; r=8.93% [WACC]; 5y FCF grow -8.14% → 2.90% )
EPS Correlation: -24.09 | EPS CAGR: -46.27% | SUE: -4.0 | # QB: 0
Revenue Correlation: 75.98 | Revenue CAGR: 3.40% | SUE: 3.47 | # QB: 3
EPS next Quarter (2026-03-31): EPS=1.34 | Chg30d=+0.003 | Revisions Net=+3 | Analysts=19
EPS next Year (2026-12-31): EPS=5.63 | Chg30d=+0.011 | Revisions Net=+2 | Growth EPS=+7.3% | Growth Revenue=+4.9%