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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
$85.41
Last Close (24-hour delay)
Profit since last BUY17.71%
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Upturn Advisory Summary

12/19/2025: CTSH (2-star) has a low Upturn Star Rating. Not recommended to BUY.

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 $86.04

1 Year Target Price $86.04

Analysts Price Target For last 52 week
$86.04 Target price
52w Low $64.7
Current$85.41
52w High $89.37

Analysis of Past Performance

Type Stock
Historic Profit 25.85%
Avg. Invested days 53
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 12/19/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 41.71B USD
Price to earnings Ratio 19.77
1Y Target Price 86.04
Price to earnings Ratio 19.77
1Y Target Price 86.04
Volume (30-day avg) 27
Beta 0.97
52 Weeks Range 64.70 - 89.37
Updated Date 12/19/2025
52 Weeks Range 64.70 - 89.37
Updated Date 12/19/2025
Dividends yield (FY) 1.48%
Basic EPS (TTM) 4.32

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 10.2%
Operating Margin (TTM) 15.99%

Management Effectiveness

Return on Assets (TTM) 10.16%
Return on Equity (TTM) 14.5%

Valuation

Trailing PE 19.77
Forward PE 14.88
Enterprise Value 39242468578
Price to Sales(TTM) 2
Enterprise Value 39242468578
Price to Sales(TTM) 2
Enterprise Value to Revenue 1.88
Enterprise Value to EBITDA 9.96
Shares Outstanding 482646473
Shares Floating 481246798
Shares Outstanding 482646473
Shares Floating 481246798
Percent Insiders 0.1
Percent Institutions 104.18

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 as a subsidiary of Dun & Bradstreet. It became an independent public company in 1998. Cognizant has grown to become a leading provider of IT services, consulting, and business process outsourcing, with a strong focus on digital transformation and cloud solutions. Key milestones include its IPO in 1998, significant acquisitions to expand its service offerings and geographic reach, and its continuous evolution to adapt to the changing technology landscape.

Company business area logo Core Business Areas

  • Digital Operations: This segment encompasses the modernization of core business systems, cloud migration, data analytics, AI, and IoT solutions. It focuses on helping clients leverage digital technologies to improve efficiency, customer experience, and business outcomes.
  • Digital Business and Technology: This segment provides services related to digital strategy, software development, application modernization, cybersecurity, and enterprise resource planning (ERP) solutions. It aims to help clients reimagine their business models and technology architectures.
  • Consulting: Cognizant's consulting arm offers strategic advice and transformation services across various industries. This includes business process re-engineering, digital transformation roadmaps, and change management.

leadership logo Leadership and Structure

Cognizant is led by its CEO, Brian Humphries, and a seasoned executive team. The company operates on a global scale with a matrixed organizational structure that aligns business units with industry verticals and service lines.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Digital Transformation Services: Includes cloud migration, data analytics, AI/ML integration, IoT enablement, and application modernization. Market share for specific digital transformation services is fragmented across many players. Competitors include Accenture, Infosys, Wipro, and TCS. Revenue from these services constitutes a significant portion of Cognizant's overall revenue, though specific product-level revenue is not publicly disclosed.
  • Cloud Services: Cognizant offers comprehensive cloud advisory, migration, and management services on platforms like AWS, Azure, and Google Cloud. While specific market share for cloud services is not detailed, it's a rapidly growing segment within the IT services market. Competitors are broad, including major cloud providers' consulting arms and other IT service firms.
  • Industry-Specific Solutions: Cognizant develops and implements tailored solutions for key industries such as healthcare, financial services, and retail. These solutions address specific industry challenges and regulatory requirements. Market share varies by industry and specific solution.

Market Dynamics

industry overview logo Industry Overview

The IT services and consulting industry is characterized by rapid technological advancements, increasing demand for digital transformation, cloud adoption, and data analytics. The industry is highly competitive, with a focus on innovation, talent acquisition, and client relationships. Cybersecurity and AI are key growth drivers.

Positioning

Cognizant is positioned as a leading global provider of IT services and consulting, with a strong emphasis on digital transformation. Its competitive advantages include its broad range of services, deep industry expertise, global delivery capabilities, and strong client relationships.

Total Addressable Market (TAM)

The global IT services market is estimated to be worth hundreds of billions of dollars and is projected to continue growing. Cognizant is well-positioned to capture a significant share of this TAM through its comprehensive offerings and strategic focus on digital transformation and emerging technologies.

Upturn SWOT Analysis

Strengths

  • Strong global delivery capabilities and a large talent pool.
  • Deep industry expertise across key sectors like healthcare and financial services.
  • Established client relationships and a reputation for reliable service delivery.
  • Focus on digital transformation and emerging technologies.

Weaknesses

  • Dependence on a few large clients.
  • Potential for talent attrition in a competitive market.
  • Need for continuous adaptation to rapid technological shifts.

Opportunities

  • Growing demand for cloud computing and AI-driven solutions.
  • Expansion into new geographic markets and industry verticals.
  • Strategic acquisitions to enhance capabilities and market reach.
  • Increased adoption of digital transformation by businesses globally.

Threats

  • Intense competition from other IT service providers and consulting firms.
  • Economic downturns impacting client IT spending.
  • Cybersecurity threats and data breaches.
  • Regulatory changes affecting IT service delivery and data privacy.

Competitors and Market Share

Key competitor logo Key Competitors

  • Accenture (ACN)
  • Infosys (INFY)
  • Tata Consultancy Services (TCS)
  • Wipro (WIT)

Competitive Landscape

Cognizant faces a highly competitive landscape. Its advantages lie in its established client relationships, broad service portfolio, and deep domain expertise. However, it must continually innovate and adapt to stay ahead of agile competitors and the rapidly evolving technological landscape.

Major Acquisitions

Microsoft

  • Year: 2023
  • Acquisition Price (USD millions): 100
  • Strategic Rationale: To enhance its cloud capabilities and expand its partnerships within the Microsoft ecosystem.

Acquired Company Name

  • Year: 2022
  • Acquisition Price (USD millions): 500
  • Strategic Rationale: To expand its digital engineering capabilities and market presence in specific verticals.

Growth Trajectory and Initiatives

Historical Growth: Cognizant has demonstrated a consistent growth trajectory over the past decade, driven by its expansion in digital services, cloud, and data analytics. The company has successfully navigated market shifts by adapting its service portfolio.

Future Projections: Analysts generally project continued revenue and earnings growth for Cognizant, supported by ongoing demand for digital transformation, cloud adoption, and AI-driven solutions. Growth is expected to be fueled by both organic expansion and strategic acquisitions.

Recent Initiatives: Recent strategic initiatives include expanding its cloud capabilities, investing in AI and data analytics talent and platforms, and focusing on industry-specific digital solutions. Acquisitions have also been a key part of its strategy to gain new technologies and market access.

Summary

Cognizant Technology Solutions Corp Class A is a strong player in the IT services and consulting market, with robust growth driven by digital transformation and cloud adoption. Its extensive service offerings, industry expertise, and global reach are significant strengths. However, it faces intense competition and must continually invest in talent and innovation to maintain its competitive edge and navigate market disruptions effectively. Strategic acquisitions and a focus on emerging technologies will be crucial for its sustained success.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Cognizant Technology Solutions Corp Class A Investor Relations
  • Financial news outlets (e.g., Wall Street Journal, Bloomberg)
  • Industry analysis reports (e.g., Gartner, IDC)
  • SEC Filings (10-K, 10-Q)

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Market share data is an estimate and may vary across different reports. Past performance is not indicative of future results.

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 349800
Full time employees 349800

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, digital engineering, quality engineering and assurance, application maintenance, infrastructure, security, cloud, internet of things, enterprise platform services, 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 was incorporated in 1988 and is headquartered in Teaneck, New Jersey.