Stock · CTSH · Technology

Cognizant Technology Solutions Corp Class A

United States · Large Cap · listed since 1998 · Revenue 12 mo. $21.6B

Price as of 11/06/2026

StockScorer score
4.5
of 10 5 of 11 points Low Match To the score
Price
$64.72
1 Y −20.7%
Market cap
$28.9B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue +2.8% a year (3 years)EBIT margin 16.7%Payout 68.0% of operating cash flow

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally.

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Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. It also holds a strategic partnership with Travelport to build intelligent travel retail for the AI era. Cognizant Technology Solutions Corporation was incorporated in 1988 and is

Original text from the data provider

Summary

Cognizant Technology Solutions Corp Class A is above the middle of the Technology sector overall

61.4 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 0.1% FCF growth a year: more than over the last 5 years, less than over the last 10 years.

If free cash flow stays at €2.3B (2025), it supports €25.9B. The remaining €96.4M of the market value assume it grows 0.1% a year for 10 years and not at all afterwards.

Required FCF growth per year

0.1%

no growth afterwards

Market value breakdown€26B market value, price as of 11/06/2026

€25.9B without growth
€96.4M priced-in growth
  • 5 yrs achieved −4.4%
  • 10 yrs achieved 2.4%
  • priced in 0.1%

Valuation against its own history

Price to operating cash flow 10.3×, below its usual range.

Middle half of 20 quarters: 11.3× to 17.7×, median 14.9×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, none speaks against it.

What supports it

with respect to the priced-in expectation

  • High return on capital every year ROCE at least 15.8% (10 years)
  • Low capital needs capex median 1.8% of revenue (10 years)
  • Steady FCF margin at least 9.3%, range 8.2 pp (10 years)

What speaks against it

with respect to the priced-in expectation

No anomaly in the stored figures.

Since the last quarter

Q1 → Q2 2026

Mostly better than the previous quarter: 2 of 3 changes for the better.

  • FCF, 12 mo.$2.5B → $2.6B+5.2%better
  • Net debt−$412.0M → $1.1Bsign changedworse
  • Shares outstanding477M → 466M−2.3%better

5 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, FCF margin, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability45.3around the middleEarns about as much as the sector.
MetricStockSector medianPosition in sector
Return on equity14.85%14.60%Rank 52
Return on capital (Greenblatt)55.16%29.77%Rank 68
EBIT margin16.72%17.40%Rank 49
FCF margin12.29%18.54%Rank 36
Gross margin33.72%48.47%Rank 23
Growth33.5below the middleGrows more slowly than the sector: Revenue growth, 1 year 6.95%, sector 12.70%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year6.95%12.70%Rank 29
Earnings growth, 3 years per year1.59%9.54%Rank 31
Earnings growth, 5 years per year12.45%14.07%Rank 43
Sustainable growth (ROE × retained earnings)1.36%2.87%Rank 31
Valuation91.9above the middleValued lower than the sector: EV/EBIT 8.10, sector 26.24.
MetricStockSector medianPosition in sector
Earnings yield7.15%2.64%Rank 90
FCF yield8.97%3.06%Rank 91
EV/saleslower is better1.365.18Rank 89
EV/EBITlower is better8.1026.24Rank 98
Momentum64.7above the middleShare price doing better than the sector: Share price, 3 months 17.36%, sector −5.84%.
MetricStockSector medianPosition in sector
Share price, 1 year−20.74%−0.59%Rank 28
Share price, 6 months25.72%−4.46%Rank 80
Share price, 3 months17.36%−5.84%Rank 89
Distance from 52-week high−25.35%−33.23%Rank 63
Quality63.3above the middleQuality above the sector: Change in share count −3.02%, sector −0.17%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−2.08%1.65%Rank 74
Change in share countlower is better−3.02%−0.17%Rank 87
Dividend streak in years88Rank 68
Price reaction to results, market-adjusted−5.74%−1.57%Rank 25
Balance sheet & risk69.4above the middleLess risk than the sector: Equity ratio 72.56%, sector 53.98%.
MetricStockSector medianPosition in sector
Equity ratio72.56%53.98%Rank 85
Net debt/EBITDAlower is better−0.08−0.20Rank 47
Debt to equitylower is better0.100.33Rank 74
Volatility, 1 yearlower is better43.09%50.37%Rank 71

Ten years in figures

Revenue from $13.5B (2016) to $21.1B (2025), 5.1% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt
201613.517.0%1.3610M−$1.2B
201714.816.8%2.1595M−$1.1B
201816.117.4%2.2584M−$416.0M
201916.814.6%2.1560M−$960.0M
202016.712.7%2.9541M−$922.0M
202118.515.3%2.2528M−$150.0M
202219.415.3%2.2519M−$657.0M
202319.413.9%2.0505M−$1.3B
202419.714.7%1.8497M−$728.0M
202521.116.7%2.6482M−$326.0M
4.5 / 10Low MatchStockScorer score5 of 11 points

3 of 7 StockScorer Score rules met · How the score is built

Cognizant Technology Solutions Corp Class A mainly meets criteria in the Valuation category. Result from 18 strategies checked.

This stock · Profitability: 67%This stock · Growth: 0%This stock · Valuation: 100%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Cognizant Technology Solutions Corp Class A's score is built

Cognizant Technology Solutions Corp Class A is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

3 of 7 rules met

5 of 11 points

  1. Free cash flow yield above the sector medianmet2 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector mediannot met0 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Cognizant Technology Solutions Corp Class A stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • StockScorer Score
  • Magic Formula: Value + Quality
  • Moat Quality
  • PEG Strategy (inspired by Peter Lynch)
  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Levermann Strategy (13 Criteria)
  • Growth Momentum (CAN SLIM principle)
  • Defensive: Low Volatility
  • Dividend Aristocrats & Continuity
  • Acquirer's Multiple: EV/EBIT Deep Value
  • High-Growth / Rule of 40

Cognizant Technology Solutions Corp Class A key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Cognizant Technology Solutions Corp Class A.

MetricStockSector
P/E ratio14.035.1
P/B ratio2.15.5
Return on equity (ROE)14.9%14.6%
Equity ratio72.6%54.0%
Debt-to-equity (D/E)0.100.33
Dividend yield2.0%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

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CTSHCognizant Technology Solutions Corp Class Athis page
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CDWCDW CorpLow4.5
LDOSLeidos Holdings IncMedium5.5
FISFidelity National Information Services Inclocked
CACICACI International Inclocked

Frequently asked questions about Cognizant Technology Solutions Corp Class A stock

How does Cognizant Technology Solutions Corp Class A stock (CTSH) score in the StockScorer model?
Cognizant Technology Solutions Corp Class A stock reaches a StockScorer score of 4.5 out of 10, which is a low match with the rule-based strategies. 3 out of 7 flagship profile rules are met.
What is Cognizant Technology Solutions Corp Class A's P/E ratio?
Cognizant Technology Solutions Corp Class A's P/E ratio is 14.0. The Technology sector median is 35.1.
What sector is Cognizant Technology Solutions Corp Class A in?
Cognizant Technology Solutions Corp Class A is assigned to the Technology sector. Its rank within the sector is 61.4 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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