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CTSH 2-star rating from Upturn Advisory
Cognizant Technology Solutions Corp Class A (CTSH) company logo

Cognizant Technology Solutions Corp Class A (CTSH)

Cognizant Technology Solutions Corp Class A (CTSH) 2-star rating from Upturn Advisory
$65.03
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Upturn Advisory Summary

02/20/2026: CTSH (2-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

Upturn 2 star rating for performance

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

4 star rating from financial analysts

27 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $90.2

1 Year Target Price $90.2

Analysts Price Target For last 52 week
$90.2 Target price
52w Low $63.83
Current$65.03
52w High $86.59
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Key Highlights

Company Size Large-Cap Stock
Market Capitalization 31.39B USD
Price to earnings Ratio 14.26
1Y Target Price 90.2
Price to earnings Ratio 14.26
1Y Target Price 90.2
Volume (30-day avg) 27
Beta 0.96
52 Weeks Range 63.83 - 86.59
Updated Date 02/20/2026
52 Weeks Range 63.83 - 86.59
Updated Date 02/20/2026
Dividends yield (FY) 1.94%
Basic EPS (TTM) 4.56

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-02-04
When -
Estimate 1.32
Actual 1.35

Profitability

Profit Margin 10.56%
Operating Margin (TTM) 16%

Management Effectiveness

Return on Assets (TTM) 10.23%
Return on Equity (TTM) 15.16%

Valuation

Trailing PE 14.26
Forward PE 11.79
Enterprise Value 31065332526
Price to Sales(TTM) 1.49
Enterprise Value 31065332526
Price to Sales(TTM) 1.49
Enterprise Value to Revenue 1.47
Enterprise Value to EBITDA 7.65
Shares Outstanding 478246920
Shares Floating 477185212
Shares Outstanding 478246920
Shares Floating 477185212
Percent Insiders 0.1
Percent Institutions 104.73

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Cognizant Technology Solutions Corp Class A

Cognizant Technology Solutions Corp Class A(CTSH) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

Cognizant Technology Solutions Corp Class A was founded in 1994. It has grown to become a leading global provider of information technology, consulting, and business process outsourcing services. Key milestones include its IPO in 1998, expansion into new service lines and geographies, and strategic acquisitions to enhance its capabilities.

Company business area logo Core Business Areas

  • Digital Engineering: Offers services in cloud, data, AI, IoT, and cybersecurity to help clients modernize their IT infrastructure and build digital products and platforms.
  • Digital Software and Technology: Focuses on application development, modernization, and management, along with enterprise resource planning (ERP) and customer relationship management (CRM) solutions.
  • Consulting: Provides strategic advice and transformation services across various industries, helping clients navigate complex business challenges and leverage technology for growth.
  • Enterprise Information Systems: Delivers services related to IT infrastructure management, application support, and custom software development.

leadership logo Leadership and Structure

Cognizant is led by a Board of Directors and an executive management team. Key leadership roles include CEO, CFO, and heads of various business units and functional areas. The company operates with a global delivery model, with operations spread across North America, Europe, and Asia.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Cloud Services: Includes cloud migration, strategy, implementation, and management. Competitors: Accenture, Infosys, TCS, Wipro. Market share data is aggregated within broader IT services.
  • Digital Transformation Services: Encompasses strategy, design, development, and implementation of digital solutions across various industries. Competitors: Accenture, Deloitte, Capgemini. Market share data is aggregated within broader IT services.
  • Data & Analytics: Provides solutions for data management, business intelligence, AI, and machine learning. Competitors: IBM, Oracle, SAP, Microsoft. Market share data is aggregated within broader IT services.
  • Application Modernization: Helps clients update legacy systems to modern, scalable, and agile platforms. Competitors: TCS, Wipro, Infosys, Accenture. Market share data is aggregated within broader IT services.

Market Dynamics

industry overview logo Industry Overview

The IT services industry is characterized by rapid technological advancements, increasing demand for digital transformation, cloud adoption, AI, and data analytics. The market is highly competitive with a mix of large global players and niche specialists. Geopolitical factors, economic conditions, and talent availability also influence the industry.

Positioning

Cognizant is positioned as a leading global IT services provider, focusing on digital transformation and innovation. Its strengths lie in its broad service portfolio, global delivery capabilities, and strong client relationships across various industries. Its competitive advantages include its scale, deep domain expertise, and ability to offer end-to-end solutions.

Total Addressable Market (TAM)

The global IT services market is valued in hundreds of billions of dollars and is projected to grow significantly. Cognizant targets a substantial portion of this TAM, focusing on segments like digital transformation, cloud, data, and AI. The company's positioning is strong within its core service areas, aiming to capture a significant share of this expanding market.

Upturn SWOT Analysis

Strengths

  • Strong global delivery capabilities and large workforce.
  • Diverse client base across multiple industries.
  • Comprehensive portfolio of digital and technology services.
  • Established reputation and long-standing client relationships.
  • Significant investments in R&D and innovation.

Weaknesses

  • Dependence on a few large clients.
  • Potential for increased competition and commoditization of services.
  • Challenges in talent acquisition and retention in niche areas.
  • Integration complexities from past acquisitions.
  • Pressure on pricing in certain service lines.

Opportunities

  • Growing demand for digital transformation and cloud adoption.
  • Expansion into emerging technologies like AI, IoT, and blockchain.
  • Leveraging acquisitions to enter new markets or enhance capabilities.
  • Increasing focus on sustainability and ESG services.
  • Growth in specific industry verticals like healthcare and financial services.

Threats

  • Intense competition from both large and small IT service providers.
  • Economic downturns impacting client IT spending.
  • Cybersecurity threats and data privacy regulations.
  • Rapid technological obsolescence.
  • Geopolitical instability affecting global operations.

Competitors and Market Share

Key competitor logo Key Competitors

  • Accenture plc (ACN)
  • Infosys Limited (INFY)
  • Tata Consultancy Services Limited (TCS)
  • Wipro Limited (WIT)
  • Capgemini SE (CAPP)
  • International Business Machines Corporation (IBM)
  • DXC Technology Company (DXC)

Competitive Landscape

Cognizant faces intense competition from global IT giants and specialized firms. Its competitive advantages include its scale, broad service offerings, and deep industry expertise, particularly in digital transformation. However, it faces challenges from competitors with strong niche capabilities, aggressive pricing, and faster innovation cycles. The ability to adapt to evolving technology trends and client needs is crucial.

Major Acquisitions

QAI Ventures

  • Year: 2023
  • Acquisition Price (USD millions): 30
  • Strategic Rationale: To strengthen Cognizant's digital engineering capabilities and expand its presence in the product development lifecycle.

Cognizant acquired the digital transformation consulting firm ESG

  • Year: 2023
  • Acquisition Price (USD millions): 100
  • Strategic Rationale: To enhance its digital and cloud consulting capabilities, particularly in the UK and European markets.

Growth Trajectory and Initiatives

Historical Growth: Cognizant has experienced consistent revenue growth over the past decade, driven by its expansion in digital services, acquisitions, and its global delivery model. Its growth has been supported by increasing demand for IT outsourcing and digital transformation across industries.

Future Projections: Analyst consensus for Cognizant's future growth suggests continued revenue expansion, driven by its focus on digital transformation, cloud, AI, and industry-specific solutions. Profitability is expected to remain stable, with potential for margin improvement through operational efficiencies and higher-value service offerings.

Recent Initiatives: Recent initiatives include strategic acquisitions to bolster digital capabilities, expansion into new service areas such as cybersecurity and data analytics, and a continued focus on client-centric digital transformation projects. The company is also investing in its talent pool and developing new intellectual property.

Summary

Cognizant Technology Solutions Corp Class A is a well-established global IT services leader with a strong track record of revenue growth and consistent financial performance. Its core strength lies in its comprehensive digital transformation capabilities and broad industry expertise. The company's future growth is poised to benefit from the ongoing demand for cloud, AI, and digital solutions. However, it must navigate intense competition, evolving technological landscapes, and potential economic headwinds to maintain its market position and profitability.

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Sources and Disclaimers

Data Sources:

  • Cognizant Technology Solutions Corp. Investor Relations
  • Financial News Outlets (e.g., Bloomberg, Reuters)
  • Market Research Reports (e.g., Gartner, IDC)
  • Company Filings (SEC)

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Market share data and competitor information are estimates and can vary based on the source and methodology. Financial performance data is based on publicly available information and may be subject to change.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

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About Cognizant Technology Solutions Corp Class A

Exchange NASDAQ
Headquaters Teaneck, NJ, United States
IPO Launch date 1998-06-19
CEO & Director Mr. Ravi Kumar Singisetti
Sector Technology
Industry Information Technology Services
Full time employees 351600
Full time employees 351600

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. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.