Upside case
Bull case
$91+76.4%
CTSH would need investors to value it at roughly 16x earnings — about 7x more generous than today's 9x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Cognizant Technology Solutions Corporation (CTSH) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
51
analysts
21 bullish · 5 bearish · 51 covering CTSH
Strong Buy
0
Buy
21
Hold
25
Sell
5
Strong Sell
0
Consensus Target
$83
+62.3% vs today
Scenario Range
$46 – $91
Model bear to bull value window
Coverage
51
Published analyst ratings
Valuation Context
9.0x
Forward P/E · Market cap $24.3B
CTSH price targets
Three scenarios for where CTSH stock could go
Current
~$51
Confidence
76 / 100
Updated
May 1, 2026
Where we are now
Current · $51
Bear
$46
Base
$66
Bull
$91
Market caseClosest to today
Base case
$66+28.9%
At 12x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$46-9.7%
If investor confidence fades or macro conditions deteriorate, a 1x multiple contraction could push CTSH down roughly 10% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Cognizant Technology Solutions Corporation
CTSH · NASDAQTechnologyInformation Technology ServicesDecember year-end
Cognizant Technology Solutions is a global IT services and consulting firm that helps businesses modernize their technology infrastructure and operations. It generates revenue primarily through long-term service contracts across four main industry verticals — financial services (~35%), healthcare (~28%), products & resources (~22%), and communications/media/technology (~15%) — with consulting, digital transformation, and outsourcing services. The company's competitive advantage lies in its deep domain expertise across regulated industries like banking and healthcare, where its specialized knowledge creates high switching costs for clients.
Market Cap
$24.3B
Revenue TTM
$21.4B
Net Income TTM
$2.2B
Net Margin
10.4%
CTSH Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+6.2%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.31/$1.26
Revenue
$5.2B/$5.2B
Q4 2025
EPS
$1.39/$1.30
Revenue
$5.4B/$5.3B
Q1 2026
EPS
$1.35/$1.32
Revenue
$5.3B/$5.3B
Q2 2026
EPS
$1.40/$1.33
Revenue
$5.4B/$5.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.31/$1.26 | +4.0% | $5.2B/$5.2B | +1.1% |
| Q4 2025 | $1.39/$1.30 | +6.9% | $5.4B/$5.3B | +1.8% |
| Q1 2026 | $1.35/$1.32 | +2.3% | $5.3B/$5.3B | +0.4% |
| Q2 2026 | $1.40/$1.33 | +5.3% | $5.4B/$5.4B | -0.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$22.4B
+4.8% YoY
FY2
$23.6B
+5.3% YoY
EPS Outlook
FY1
$5.43
+16.3% YoY
FY2
$5.86
+7.9% YoY
Trailing FCF (TTM)$2.5B
FCF Margin: 11.5%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
CTSH beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
CTSH Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $21.1B
Product Mix
Latest annual revenue by segment or product family
Healthcare Segment
30.1%
+7.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
74.8%
+7.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Healthcare Segment is the largest disclosed segment at 30.1% of FY 2025 revenue, up 7.0% YoY.
North America is the largest reported region at 74.8%, up 7.4% YoY.
CTSH Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $71 — implies +36.0% from today's price.
Upside to Fair Value
36.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
CTSH
11.3x
vs
S&P 500
25.2x
55% discount
vs Technology Trailing P/E
CTSH
11.3x
vs
Technology
27.5x
59% discount
vs CTSH 5Y Avg P/E
Today
11.3x
vs
5Y Average
17.6x
36% discount
Forward PE
9.0x
S&P 500
19.1x
-53%
Technology
21.7x
-58%
5Y Avg
—
—
Trailing PE
11.3x
S&P 500
25.2x
-55%
Technology
27.5x
-59%
5Y Avg
17.6x
-36%
PEG Ratio
0.93x
S&P 500
1.75x
-47%
Technology
1.47x
-36%
5Y Avg
—
—
EV/EBITDA
5.9x
S&P 500
15.3x
-61%
Technology
17.4x
-66%
5Y Avg
10.8x
-45%
Price/FCF
9.4x
S&P 500
21.3x
-56%
Technology
19.8x
-53%
5Y Avg
17.9x
-48%
Price/Sales
1.2x
S&P 500
3.1x
-63%
Technology
2.4x
-52%
5Y Avg
2.0x
-42%
Dividend Yield
2.47%
S&P 500
1.88%
+31%
Technology
1.18%
+109%
5Y Avg
1.53%
+62%
| Metric | CTSH | S&P 500 | Technology | 5Y Avg CTSH |
|---|---|---|---|---|
| Forward PE | 9.0x | 19.1x-53% | 21.7x-58% | — |
| Trailing PE | 11.3x | 25.2x-55% | 27.5x-59% | 17.6x-36% |
| PEG Ratio | 0.93x | 1.75x-47% | 1.47x-36% | — |
| EV/EBITDA | 5.9x | 15.3x-61% | 17.4x-66% | 10.8x-45% |
| Price/FCF | 9.4x | 21.3x-56% | 19.8x-53% | 17.9x-48% |
| Price/Sales | 1.2x | 3.1x-63% | 2.4x-52% | 2.0x-42% |
| Dividend Yield | 2.47% | 1.88% | 1.18% | 1.53% |
CTSH trades above S&P 500 benchmarks on 0 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolCTSH Financial Health
Verdict
Strong
CTSH generates $2.5B in free cash flow at a 11.5% margin — 18.7% ROIC signals a durable competitive advantage · returns 8.1% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$21.4B
Revenue Growth
TTM vs prior year
+6.5%
Gross Margin
Gross profit as a share of revenue
32.1%
Operating Margin
Operating income divided by revenue
15.7%
Net Margin
Net income divided by revenue
10.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$4.67
Free Cash Flow (TTM)
Cash generation after capex
$2.5B
FCF Margin
FCF as share of revenue — the primary cash quality signal
11.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
18.7%
ROA
Return on assets, trailing twelve months
10.9%
Cash & Equivalents
Liquid assets on the balance sheet
$1.9B
Net Cash
Cash exceeds total debt — no net leverage
$326M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
14.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
8.1%
Dividend
2.5%
Buyback
5.7%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.4B
Dividend / Share
Annualized trailing dividend per share
$1.27
Payout Ratio
Share of earnings distributed as dividends
27.4%
Shares Outstanding
Declining as buybacks retire shares
474M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageCTSH Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
AI Automation Threat
Rapid AI adoption could automate tasks previously performed by human consultants, potentially reducing demand for Cognizant’s consulting services and compressing billable hours. This shift may erode revenue streams and margin if the firm cannot pivot quickly.
High Risk
Cybersecurity Breach Risk
The firm’s reliance on global IT networks exposes it to data security breaches and cyberattacks, which could trigger costly legal actions, reputational damage, and financial penalties. A single breach could materially affect liquidity and client trust.
High Risk
Anti‑Outsourcing Legislation
Potential U.S. legislation against offshore outsourcing could limit Cognizant’s ability to serve clients, directly impacting its core business operations and financial results. Such regulatory changes could force costly restructuring or higher domestic labor costs.
Medium
Macroeconomic & Client Spending
Global economic and political shifts can dampen client discretionary spending on IT services, especially in the financial services sector where Cognizant has significant exposure. Reduced spending could lower revenue growth and margin expansion.
Medium
Offshore Labor & Talent Gap
Reliance on offshore labor subjects the firm to political and economic risks, while a recognized talent and skills gap may hinder the delivery of advanced technologies. These factors could increase operational costs and delay project timelines.
Lower
Attrition & EBIT Margin Pressure
High employee attrition relative to industry peers and margin compression from rising compensation costs and large deal reliance have historically impacted EBIT margins. Ongoing attrition could further erode profitability if not addressed.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why CTSH Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
AI‑Led Transformation
Cognizant is embedding artificial intelligence across its operations and client services, driving efficiency and automating processes. The strategy is already generating new and expanded contracts, especially in generative AI and enterprise AI agents, and the launch of its Cognizant AI Factory platform positions the firm as a key partner for clients scaling AI initiatives.
Strong Financial Performance
In Q1 2025, Cognizant posted significant year‑over‑year revenue growth, accelerating from prior periods. The company maintains double‑digit net profit margins and solid returns on equity and invested capital, with owner earnings—EPS growth plus dividends—also strong.
Durable Business Model
Cognizant’s model is supported by intangible assets and high customer switching costs, ensuring client retention. Its operations are efficient, with sound margins and effective capital use, reinforcing long‑term profitability.
Shareholder Returns
The firm has a history of returning value through dividends, which it recently increased, and a substantial share repurchase program, underscoring management’s commitment to shareholder value.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
CTSH Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$51.33
52W Range Position
1%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$50.81
+1.0% from the low
52-Week High
$87.03
-41.0% from the high
1 Month
-17.67%
3 Month
-33.41%
YTD
-36.8%
1 Year
-33.9%
3Y CAGR
-5.9%
5Y CAGR
-7.3%
10Y CAGR
-1.6%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
CTSH vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
9.0x
vs 8.4x median
+8% above peer median
Revenue Growth
+4.8%
vs +4.7% median
+3% above peer median
Net Margin
10.4%
vs 10.7% median
-2% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
CTS CTSH Cognizant Technology Solutions Corporation | $24.3B | 9.0x | +4.8% | 10.4% | Hold | +62.3% |
ACN ACN Accenture plc | $108.7B | 12.6x | +4.7% | 10.7% | Buy | +71.8% |
INF INFY Infosys Limited | $51.3B | 16.6x | +1.4% | 16.2% | Hold | +33.7% |
WIT WIT Wipro Limited | $20.9B | 0.2x | +2.6% | 15.1% | Hold | +268.8% |
EPA EPAM EPAM Systems, Inc. | $5.9B | 8.4x | +7.4% | 7.0% | Buy | +84.1% |
GLO GLOB Globant S.A. | $1.8B | 6.5x | +10.8% | 4.0% | Buy | +56.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
CTSH Dividend and Capital Return
CTSH returns capital mainly through $1.4B/year in buybacks (5.6% buyback yield), with a modest 2.44% dividend — combining for 8.0% total shareholder yield. The dividend has grown for 9 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
8.0%
Dividend + buyback return per year
Buyback Yield
5.6%
Dividend Yield
2.44%
Payout Ratio
27.4%
How CTSH Splits Its Return
Div 2.44%
Buyback 5.6%
Dividend 2.44%Buybacks 5.6%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.27
Growth Streak
Consecutive years of dividend increases
9Y
3Y Div CAGR
4.7%
5Y Div CAGR
7.1%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.4B
Estimated Shares Retired
27M
Approx. Share Reduction
5.7%
Shares Outstanding
Current diluted share count from the screening snapshot
474M
At 5.7%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.66 | — | — | — |
| 2025 | $1.24 | +3.3% | 3.4% | 5.0% |
| 2024 | $1.20 | +3.4% | 1.6% | 3.2% |
| 2023 | $1.16 | +7.4% | 2.8% | 4.3% |
| 2022 | $1.08 | +12.5% | 4.8% | 6.7% |
FAQ
7 questionsCTSH Investor Questions
Common questions answered from live analyst data and company financials.
01Is Cognizant Technology Solutions Corporation (CTSH) stock a buy or sell in 2026?
Cognizant Technology Solutions Corporation (CTSH) is rated Hold by Wall Street analysts as of 2026. Of 51 analysts covering the stock, 21 rate it Buy or Strong Buy, 25 rate it Hold, and 5 rate it Sell or Strong Sell. The consensus 12-month price target is $83, implying +62.3% from the current price of $51. The bear case scenario is $46 and the bull case is $91.
02What is the CTSH stock price target for 2026?
The Wall Street consensus price target for CTSH is $83 based on 51 analyst estimates. The high-end target is $107 (+108.5% from today), and the low-end target is $56 (+9.1%). The base case model target is $66.
03Is Cognizant Technology Solutions Corporation (CTSH) stock overvalued in 2026?
CTSH trades at 9.0x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Cognizant Technology Solutions Corporation (CTSH) stock in 2026?
The primary risks for CTSH in 2026 are: (1) AI Automation Threat — Rapid AI adoption could automate tasks previously performed by human consultants, potentially reducing demand for Cognizant’s consulting services and compressing billable hours. (2) Cybersecurity Breach Risk — The firm’s reliance on global IT networks exposes it to data security breaches and cyberattacks, which could trigger costly legal actions, reputational damage, and financial penalties. (3) Anti‑Outsourcing Legislation — Potential U. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Cognizant Technology Solutions Corporation's revenue and earnings forecast?
Analyst consensus estimates CTSH will report consensus revenue of $22.4B (+4.8% year-over-year) and EPS of $5.43 (+16.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $23.6B in revenue.
06When does Cognizant Technology Solutions Corporation (CTSH) report its next earnings?
A confirmed upcoming earnings date for CTSH is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Cognizant Technology Solutions Corporation generate?
Cognizant Technology Solutions Corporation (CTSH) generated $2.5B in free cash flow over the trailing twelve months — a free cash flow margin of 11.5%. CTSH returns capital to shareholders through dividends (2.4% yield) and share repurchases ($1.4B TTM).