Cognizant Technology Solutions Corporation
- Open
- 44.55
- Day high
- 44.62
- Day low
- 42.34
- Prev close
- 43.40
- Volume
- 6.1M
- Mkt cap
- $20.5B
- P/E (TTM)
- 9.4
- EPS (TTM)
- $4.52
- P/B
- 1.4
- P/S
- 1.0
- Yield
- 2.95%
- Per share
- $1.28
- ▲Insiders net buying $190K over the last 3 months (1 open-market buy, 3 sales)
- 🏛Institutions mixed (13F)
Cognizant Technology Solutions Corporation (CTSH) is a Technology company listed on NASDAQ. The stock is down 47% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 3 sales (SEC Form 4).
Cognizant Technology Solutions Corporation (CTSH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 12 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CTSH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $1.33 | $1.40 | +5.3% | $5.4B | -0.0% |
| Feb 4, 2026 | $1.32 | $1.35 | +2.3% | $5.3B | +0.4% |
| Oct 29, 2025 | $1.30 | $1.39 | +6.9% | $5.4B | +1.8% |
| Jul 30, 2025 | $1.26 | $1.31 | +4.0% | $5.2B | +1.1% |
| Apr 30, 2025 | $1.20 | $1.23 | +2.5% | $5.1B | +1.0% |
| Feb 5, 2025 | $1.12 | $1.21 | +8.0% | $5.1B | +0.2% |
| Oct 30, 2024 | $1.15 | $1.25 | +8.7% | $5.0B | +1.0% |
| Jul 31, 2024 | $1.12 | $1.17 | +4.5% | $4.8B | +1.0% |
| May 1, 2024 | $1.11 | $1.12 | +0.9% | $4.8B | +0.9% |
| Feb 6, 2024 | $1.04 | $1.18 | +13.5% | $4.8B | -0.1% |
| Nov 1, 2023 | $1.09 | $1.16 | +6.4% | $4.9B | -0.3% |
| Aug 2, 2023 | $0.99 | $1.10 | +11.1% | $4.9B | +1.0% |
CTSH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 6, 2026 | Kerdman Alinaofficer: SVP, Controller & CAO | Tax | 68 | $38.73 |
| Jul 6, 2026 | Kerdman Alinaofficer: SVP, Controller & CAO | Sell | 137 | $39.82 |
| Jul 6, 2026 | Kerdman Alinaofficer: SVP, Controller & CAO | Option | 207 | — |
| Jun 17, 2026 | Kerdman Alinaofficer: SVP, Controller & CAO | Tax | 65 | $52.17 |
| Jun 17, 2026 | Varrier Rajeshofficer: President Operations CMD India | Option | 250 | — |
| Jun 17, 2026 | Varrier Rajeshofficer: President Operations CMD India | Option | 272 | — |
| Jun 17, 2026 | Gummadi Suryaofficer: President - Americas | Option | 1,397 | — |
| Jun 17, 2026 | Gummadi Suryaofficer: President - Americas | Tax | 987 | $52.17 |
| Jun 17, 2026 | Diaz Kathrynofficer: Chief People Officer | Tax | 372 | $52.17 |
| Jun 17, 2026 | Dalal Jatin Pofficer: Chief Financial Officer | Tax | 1,346 | $52.17 |
| Jun 17, 2026 | Varrier Rajeshofficer: President Operations CMD India | Option | 749 | — |
| Jun 17, 2026 | Ayyar Balu Ganeshofficer: President - APJ and ISG | Option | 848 | — |
| Jun 17, 2026 | Dalal Jatin Pofficer: Chief Financial Officer | Option | 1,846 | — |
| Jun 17, 2026 | Dalal Jatin Pofficer: Chief Financial Officer | Option | 648 | — |
| Jun 17, 2026 | Gummadi Suryaofficer: President - Americas | Option | 598 | — |
Source: CTSH SEC Form 4 filings, latest Jul 6, 2026. For informational purposes only — not investment advice.
See the full CTSH insider & 13F page →Cognizant Technology Solutions Corporation company profile
Overview
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a multinational information technology services and consulting company founded in 1994 and headquartered in Teaneck, New Jersey. Originally established as an in-house technology unit of Dun & Bradstreet, Cognizant went public in 1998 and has since evolved into one of the world's leading professional services companies. The company provides digital transformation, technology consulting, and outsourcing services to Fortune 500 and Global 2000 companies across multiple industries. With a global workforce of over 300,000 employees and operations spanning North America, Europe, and other international markets, Cognizant has positioned itself as a key partner for enterprises seeking to modernize their technology infrastructure and business processes.
Business
Cognizant operates in the information technology services industry, which encompasses consulting, systems integration, application development, maintenance, and business process outsourcing. The company helps large enterprises navigate digital transformation by providing both strategic consulting and hands-on technology implementation services. The company's business is organized into four primary segments: 1. Financial Services (approximately 25-30% of revenue): Serves banks, insurance companies, and capital markets firms with services including digital lending platforms, fraud detection systems, next-generation payment solutions, and regulatory compliance technology. This segment focuses on helping financial institutions modernize legacy systems and adapt to digital banking trends. 2. Healthcare (approximately 25-30% of revenue): Provides technology solutions to healthcare payers (insurance companies), providers (hospitals and health systems), and life sciences companies (pharmaceutical, biotech, and medical device manufacturers). Services include claims processing systems, patient engagement platforms, clinical trial management, pharmacovigilance, and manufacturing optimization. 3. Products and Resources (approximately 20-25% of revenue): Serves manufacturers, retailers, travel and hospitality companies, as well as logistics, energy, and utility providers. This segment was significantly enhanced by the 2024 acquisition of Belcan, an engineering services company that expanded Cognizant's capabilities in product development and engineering design. 4. Communications, Media and Technology (approximately 20-25% of revenue): Focuses on information, media, entertainment, and technology companies, providing digital content creation, personalized user experience development, and digital engineering services. Cognizant's core offerings include artificial intelligence and automation services, cloud migration and modernization, data analytics and insights, cybersecurity solutions, and application development and maintenance. The company has heavily invested in generative AI capabilities, with over 1,400 AI engagements and platforms like Flowsource, Neuro AI, and various industry-specific AI solutions.
Revenue model
Cognizant generates revenue primarily through professional services contracts with large enterprise clients. The business model centers on providing skilled technology professionals and specialized expertise on both project-based and long-term outsourcing arrangements. The company's revenue streams include: 1. Consulting and Systems Integration: High-margin advisory services where Cognizant helps clients design digital transformation strategies and implement new technology solutions. These engagements typically involve senior consultants and specialized expertise. 2. Application Development and Maintenance: Building custom software applications and providing ongoing support and enhancement services. This includes both new development projects and maintenance of existing systems. 3. Business Process Outsourcing: Taking over entire business functions like claims processing, customer service, or back-office operations, typically through multi-year contracts with defined service level agreements. 4. Managed Services: Ongoing management of clients' IT infrastructure, including cloud services, cybersecurity monitoring, and system administration. Cognizant's clients are primarily Fortune 500 and Global 2000 companies across various industries. The company has been successful in signing large deals (over $100 million total contract value), with 29 such deals signed in 2024 compared to 17 in 2023. Factors that positively impact margins include higher utilization rates of technical staff, increased automation and AI-driven productivity gains, successful pricing negotiations, and a favorable mix toward higher-value consulting services. The company benefits from its global delivery model, leveraging lower-cost talent in countries like India while maintaining client-facing teams in major markets. Margin pressures come from intense competition in the IT services industry, client demands for cost reductions, the need for continuous investment in new technologies like AI, wage inflation in key markets, and the initial ramp-up costs associated with large new contracts. Currency fluctuations also impact margins given the company's global operations.
Competitive moat
Cognizant's competitive moat is moderate but faces significant challenges in an increasingly commoditized IT services industry. The company's primary defensive characteristics include its deep industry expertise across healthcare, financial services, and other verticals, which creates switching costs as clients rely on Cognizant's specialized knowledge of regulatory requirements and industry-specific processes. The company's scale and global delivery capabilities provide some competitive advantages, allowing it to handle large, complex engagements that smaller competitors cannot manage. Cognizant's established relationships with Global 2000 clients and its track record of managing critical business processes create some client stickiness, particularly in mission-critical applications where switching providers involves significant risk and disruption. However, the moat is relatively weak and under pressure. The IT services industry is highly competitive with numerous large players like Accenture, IBM, Infosys, TCS, and Wipro offering similar services. Barriers to entry are low for many service categories, and clients increasingly view IT services as commoditized offerings, leading to intense price competition. The rise of artificial intelligence presents both an opportunity and a threat. While Cognizant is investing heavily in AI capabilities, these technologies could eventually automate many of the services the company currently provides, potentially reducing demand for human-intensive IT services. Additionally, cloud platforms and low-code/no-code development tools are making it easier for companies to handle some technology needs internally. Disruption risks include continued automation of routine IT tasks, the emergence of specialized AI-native service providers, and potential shifts toward more product-based rather than service-based technology solutions. The company's success will largely depend on its ability to continuously evolve its service offerings and move up the value chain toward more strategic consulting and cutting-edge technology implementation.
Risks & safety
Cognizant demonstrates strong financial safety with solid balance sheet metrics and consistent cash generation, though valuation appears fairly priced. **Liquidity and Solvency:** - Cash and short-term investments: $2.0 billion as of Q1 2025 - Current ratio: 2.22, indicating strong short-term liquidity - Debt-to-equity ratio: 0.079, representing minimal debt burden - Free cash flow: $323 million in Q1 2025, $1.8 billion for full year 2024 - No significant solvency concerns given strong cash position and low debt levels **Valuation Metrics:** - Price-to-earnings ratio: 14.3 (Q1 2025), reasonable for a mature IT services company - EV/EBITDA: 9.1, in line with industry peers - Price-to-book ratio: 2.54, reflecting moderate premium to book value - Graham number suggests fair valuation around current price levels **Other Considerations:** - Consistent profitability and cash generation provide downside protection - Large client base reduces concentration risk - Global operations provide geographic diversification but also currency exposure - Industry cyclicality and competitive pressures limit upside potential
Recent development
Over the past few years, Cognizant has undergone a significant strategic transformation, pivoting from a period of stabilization and cost management to aggressive growth initiatives centered around artificial intelligence and digital transformation services. The company completed its NextGen cost optimization program, which helped improve operational efficiency and margins. This foundational work enabled Cognizant to reinvest in growth areas, particularly AI capabilities where the company committed to investing approximately $1 billion over three years. Artificial Intelligence has become the centerpiece of Cognizant's strategy. The company has developed multiple AI platforms including Flowsource for workflow automation, Neuro AI for IT operations, and various industry-specific AI solutions. AI-generated code now represents over 20% of the code accepted by developers, demonstrating tangible productivity gains. The company has completed over 1,400 generative AI engagements and established three key AI transformation vectors: productivity enhancement, data and cloud infrastructure modernization, and the creation of AI agents for new service offerings. Strategic acquisitions have expanded capabilities in high-growth areas. The acquisition of Thirdera strengthened Cognizant's ServiceNow consulting practice, while the Belcan acquisition significantly expanded the company's engineering and product development services, particularly in the automotive, aerospace, and industrial sectors. The company has also focused on talent development and retention, establishing a 14-acre learning center in Chennai with plans to train 100,000 individuals annually in AI technologies. The Synapse initiative has already trained over 400,000 people, while the BlueBolt innovation program has generated over 385,000 ideas from employees. Large deal capabilities have been substantially enhanced, with the company signing 29 deals over $100 million in total contract value during 2024, compared to just 17 in 2023. These deals span multiple geographies and service lines, indicating broader market acceptance of Cognizant's expanded capabilities.
CTSH company profile · for informational purposes only — not investment advice.
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