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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
$80.2
Last Close (24-hour delay)
Profit since last BUY10.53%
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Upturn Advisory Summary

12/04/2025: 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 $85.04

1 Year Target Price $85.04

Analysts Price Target For last 52 week
$85.04 Target price
52w Low $64.7
Current$80.2
52w High $89.37

Analysis of Past Performance

Type Stock
Historic Profit 18.17%
Avg. Invested days 52
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 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 12/04/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 39.42B USD
Price to earnings Ratio 18.69
1Y Target Price 85.04
Price to earnings Ratio 18.69
1Y Target Price 85.04
Volume (30-day avg) 27
Beta 0.97
52 Weeks Range 64.70 - 89.37
Updated Date 12/5/2025
52 Weeks Range 64.70 - 89.37
Updated Date 12/5/2025
Dividends yield (FY) 1.55%
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 18.69
Forward PE 14.08
Enterprise Value 37060906520
Price to Sales(TTM) 1.89
Enterprise Value 37060906520
Price to Sales(TTM) 1.89
Enterprise Value to Revenue 1.78
Enterprise Value to EBITDA 9.4
Shares Outstanding 482646473
Shares Floating 481237145
Shares Outstanding 482646473
Shares Floating 481237145
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 was founded in 1994 as Dun & Bradstreet Satyam Software, a division of Dun & Bradstreet. In 1996, it became Cognizant Corporation, and in 1998, it was renamed Cognizant Technology Solutions. It has grown to become a major player in IT services, digital transformation, consulting, and business process services.

Company business area logo Core Business Areas

  • Consulting: Offers strategic consulting services to help clients optimize their business processes and technology strategies.
  • Digital Business: Provides digital transformation solutions, including cloud services, IoT, and AI to help clients innovate and improve customer experiences.
  • Technology Services: Delivers a wide range of IT services, including application development, maintenance, infrastructure management, and cybersecurity.
  • Business Process Services (BPS): Offers outsourcing services for various business processes, such as customer service, finance and accounting, and HR.

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

Product Key Offerings logo Key Offerings

  • Digital Transformation Services: Helps businesses adopt digital technologies to enhance customer experiences, streamline operations, and drive revenue growth. Market share is difficult to pinpoint exactly, but they compete with Accenture, TCS, and Infosys in this space. Revenue is a significant portion of Cognizant's total revenue.
  • Cloud Services: Provides cloud consulting, migration, and management services to help businesses leverage the benefits of cloud computing. Competitors include Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The Cloud Services market is growing, and Cognizant is a leading player.
  • AI and Analytics: Offers AI-powered solutions and data analytics services to help businesses gain insights, automate processes, and make data-driven decisions. Competitors include IBM, SAS, and Palantir. This is a rapidly growing market segment.
  • Application Services: Provides services to manage and support business applications. This is a mature market segment. Competitors include Tata Consultancy Services (TCS) and Capgemini

Market Dynamics

industry overview logo Industry Overview

The IT services industry is experiencing growth driven by digital transformation, cloud adoption, and the increasing demand for data analytics and AI solutions. Competition is fierce with both large global players and smaller niche providers.

Positioning

Cognizant is positioned as a leading provider of IT services and digital transformation solutions. The company's competitive advantages include its strong client relationships, global delivery network, and focus on innovation.

Total Addressable Market (TAM)

The TAM for IT services is estimated to be in the trillions of dollars globally. Cognizant is positioned well to capture a significant portion of this market through its diverse service offerings and strong market presence.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition
  • Extensive global delivery network
  • Deep industry expertise
  • Focus on digital transformation
  • Strong client relationships

Weaknesses

  • Historically slower organic growth than some peers
  • Higher employee attrition compared to competitors
  • Reliance on specific key clients
  • Integration of acquired companies can be challenging

Opportunities

  • Expanding into new markets and geographies
  • Increasing demand for digital transformation services
  • Growing adoption of cloud computing
  • Leveraging AI and automation to improve efficiency
  • Strategic acquisitions to enhance capabilities

Threats

  • Intense competition from global IT services providers
  • Economic downturns and geopolitical instability
  • Rapid technological changes
  • Cybersecurity threats
  • Talent shortage and rising labor costs

Competitors and Market Share

Key competitor logo Key Competitors

  • Accenture (ACN)
  • Tata Consultancy Services (TCS)
  • Infosys (INFY)
  • IBM (IBM)

Competitive Landscape

Cognizant faces intense competition from global IT services providers, each with its own strengths and weaknesses. Cognizant's focus on digital transformation and its strong client relationships give it a competitive edge in certain markets.

Major Acquisitions

TriZetto Healthcare Products

  • Year: 2014
  • Acquisition Price (USD millions): 2700
  • Strategic Rationale: Strengthened its healthcare IT solutions portfolio and expanded its presence in the healthcare industry.

Belize Consulting Services

  • Year: 2022
  • Acquisition Price (USD millions): 0
  • Strategic Rationale: Enhanced its cloud and data analytics capabilities.

Growth Trajectory and Initiatives

Historical Growth: Cognizant has experienced steady growth over the past decade, driven by its expansion into digital services and strategic acquisitions. However, growth has slowed in recent years.

Future Projections: Analysts project moderate revenue growth for Cognizant in the coming years, driven by continued demand for digital transformation services and cloud solutions.

Recent Initiatives: Cognizant has focused on strategic acquisitions to enhance its capabilities in key areas such as cloud, AI, and data analytics. It also invested heavily in upskilling and reskilling its workforce.

Summary

Cognizant has positioned itself as a leader in the IT services and consulting space, particularly within digital transformation. However, like its competitors, the company has been affected by market and economic factors that have stagnated growth. The company has a healthy balance sheet, which allows it to explore ways to return to being a top player. The success of the company depends on its execution in the next 3 to 5 years to realize that goal.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company Filings (10-K, 10-Q)
  • Earnings Call Transcripts
  • Analyst Reports
  • Industry Publications

Disclaimers:

The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor. Market share estimates are approximate and may vary depending on the source.

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.