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CTSH logo CTSH
Upturn stock rating
CTSH logo

Cognizant Technology Solutions Corp Class A (CTSH)

Upturn stock rating
$72.19
Last Close (24-hour delay)
upturn advisory
PASS
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Upturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • 1Y
  • 1M
  • 1W

Upturn Advisory Summary

10/30/2025: CTSH (2-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Below Average Performance

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

Number of Analysts

rating

27 Analysts rated it

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

1 Year Target Price $84.82

1 Year Target Price $84.82

Analysts Price Target For last 52 week
$84.82 Target price
52w Low $64.98
Current$72.19
52w High $89.77

Analysis of Past Performance

Type Stock
Historic Profit 6.9%
Avg. Invested days 56
Today’s Advisory PASS
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulation Last Close 10/30/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 35.18B USD
Price to earnings Ratio 16.87
1Y Target Price 84.82
Price to earnings Ratio 16.87
1Y Target Price 84.82
Volume (30-day avg) 27
Beta 0.94
52 Weeks Range 64.98 - 89.77
Updated Date 10/31/2025
52 Weeks Range 64.98 - 89.77
Updated Date 10/31/2025
Dividends yield (FY) 1.72%
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 2025-10-29
When After Market
Estimate 1.3
Actual 1.39

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 16.87
Forward PE 12.12
Enterprise Value 32091527779
Price to Sales(TTM) 1.69
Enterprise Value 32091527779
Price to Sales(TTM) 1.69
Enterprise Value to Revenue 1.57
Enterprise Value to EBITDA 8.43
Shares Outstanding 482646473
Shares Floating 481208187
Shares Outstanding 482646473
Shares Floating 481208187
Percent Insiders 0.1
Percent Institutions 103.2

ai summary icon Upturn AI SWOT

Cognizant Technology Solutions Corp Class A

stock logo

Company Overview

overview logo History and Background

Cognizant Technology Solutions was founded in 1994 as an in-house technology unit of Dun & Bradstreet. It was spun off as an independent company in 1996. Cognizant rapidly grew through acquisitions and expansion of its services, becoming a major player in IT services and consulting.

business area logo Core Business Areas

  • Digital Business: Focuses on helping clients transform their businesses through digital technologies, including digital strategy, design, and engineering.
  • Digital Operations: Provides services to optimize and automate business processes, leveraging technologies like AI, cloud, and automation.
  • Digital Systems and Technology: Offers IT infrastructure services, application development, and modernization, and technology consulting.

leadership logo Leadership and Structure

Cognizant is led by CEO Ravi Kumar S. The company has a hierarchical organizational structure with various business units and functional departments.

Top Products and Market Share

overview logo Key Offerings

  • Application Services: Application development, maintenance, and modernization services. Competitors include Accenture, TCS, Infosys. Difficult to assess exact market share due to varied definitions. Estimated revenue contribution: significant proportion of total revenue.
  • Business Consulting: Management and technology consulting services. Competitors include McKinsey, BCG, Bain. Market share varies by specific consulting area; Cognizant has a substantial presence in IT-related consulting. Estimated revenue contribution: substantial contribution, growing area.
  • Infrastructure Services: Cloud, data center, and end-user computing services. Competitors include IBM, Capgemini, HCLTech. Fragmented market but Cognizant is a key player. Estimated revenue contribution: substantial portion.

Market Dynamics

industry overview logo Industry Overview

The IT services and consulting industry is characterized by high growth, driven by digital transformation initiatives, cloud adoption, and increasing demand for outsourcing. The market is competitive with many global and regional players.

Positioning

Cognizant positions itself as a strategic partner for digital transformation, offering a range of services from consulting to implementation. Its strengths lie in its deep industry expertise and global delivery model. It aims to compete by being a client-centric solutions provider.

Total Addressable Market (TAM)

The global IT services market is estimated at over $1 trillion. Cognizant's positioning allows it to capture a significant portion of this TAM.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition
  • Deep industry expertise
  • Global delivery model
  • Broad service portfolio
  • Strong client relationships

Weaknesses

  • Slower growth compared to some peers
  • Integration challenges from acquisitions
  • Dependence on key clients
  • Potential talent attrition
  • Relatively lower profitability compared to some peers

Opportunities

  • Growing demand for digital transformation
  • Expanding into new markets
  • Leveraging emerging technologies like AI and IoT
  • Strategic acquisitions
  • Increasing focus on cybersecurity

Threats

  • Intense competition
  • Economic slowdowns
  • Rapid technological changes
  • Data security breaches
  • Geopolitical risks

Competitors and Market Share

competitor logo Key Competitors

  • ACN
  • INFY
  • IBM
  • TCS
  • HCL

Competitive Landscape

Cognizant faces strong competition from global IT services giants like Accenture, TCS, and Infosys. Its advantages include deep industry expertise and client-centric approach. Disadvantages include slower growth compared to some peers and relatively lower profitability.

Major Acquisitions

Belize Consulting Services

  • Year: 2023
  • Acquisition Price (USD millions): 0
  • Strategic Rationale: Expansion of consulting capacity

ESG Mobility

  • Year: 2023
  • Acquisition Price (USD millions): 0
  • Strategic Rationale: Adds engineering R&D services for connected cars.

Growth Trajectory and Initiatives

Historical Growth: Cognizant experienced rapid growth in its early years, followed by more moderate growth in recent times.

Future Projections: Consult analyst reports for detailed projections on Cognizant's future growth.

Recent Initiatives: Recent initiatives include focusing on digital transformation, expanding into new markets, and making strategic acquisitions.

Summary

Cognizant is a significant IT services provider with deep industry expertise and a global presence. It is working to bolster revenue growth through acquisitions and focus on digital transformation. However, it faces intense competition and is struggling to keep market share with competitors ACN, TCS, and INFY. It should continue to pursue acquisitions in the tech sector for growth and leverage its industry knowledge to maintain position. They face risks from fast changing tech and increasing wage inflation.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company Filings
  • Analyst Reports
  • Industry Research

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market data and market share estimations are approximate and subject to change.

Upturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

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 343800
Full time employees 343800

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.