Upside case
Bull case
$91+108.9%
CTSH would need investors to value it at roughly 16x earnings — about 8x more generous than today's 8x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 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
22 bullish · 5 bearish · 51 covering CTSH
Strong Buy
0
Buy
22
Hold
24
Sell
5
Strong Sell
0
Consensus Target
$78
+78.3% vs today
Scenario Range
$44 – $91
Model bear to bull value window
Coverage
51
Published analyst ratings
Valuation Context
7.6x
Forward P/E · Market cap $20.7B
CTSH price targets
Three scenarios for where CTSH stock could go
Current
~$44
Confidence
73 / 100
Updated
Jun 18, 2026
Where we are now
Current · $44
Bear
$44
Base
$69
Bull
$91
Market caseClosest to today
Base case
$69+58.6%
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
$44-0.1%
If investor confidence fades or macro conditions deteriorate, a 0x multiple contraction could push CTSH down roughly 0% 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
$20.7B
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
+6.1%
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/$1.34
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/$1.34 | +4.5% | $5.4B/$5.4B | -0.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$22.8B
+6.4% YoY
FY2
$23.9B
+4.9% YoY
EPS Outlook
FY1
$5.55
+18.9% YoY
FY2
$6.04
+8.8% YoY
Trailing FCF (TTM)$2.5B
FCF Margin: 11.5%
Next Earnings
July 29, 2026
Expected EPS
$1.38
Expected Revenue
$5.5B
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
Cheap versus peers
Fair value est. $54 — implies +24.4% from today's price.
Upside to Fair Value
24.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
CTSH
9.6x
vs
S&P 500
24.4x
61% discount
vs Technology Trailing P/E
CTSH
9.6x
vs
Technology
29.0x
67% discount
vs CTSH 5Y Avg P/E
Today
9.6x
vs
5Y Average
17.6x
45% discount
Forward PE
7.6x
S&P 500
18.8x
-59%
Technology
22.3x
-66%
5Y Avg
—
—
Trailing PE
9.6x
S&P 500
24.4x
-61%
Technology
29.0x
-67%
5Y Avg
17.6x
-45%
PEG Ratio
0.79x
S&P 500
1.66x
-52%
Technology
1.51x
-47%
5Y Avg
—
—
EV/EBITDA
5.0x
S&P 500
15.2x
-67%
Technology
16.6x
-70%
5Y Avg
10.8x
-54%
Price/FCF
8.0x
S&P 500
20.7x
-61%
Technology
19.2x
-58%
5Y Avg
17.9x
-56%
Price/Sales
1.0x
S&P 500
3.1x
-68%
Technology
2.4x
-60%
5Y Avg
2.0x
-50%
Dividend Yield
2.90%
S&P 500
1.91%
+51%
Technology
1.11%
+162%
5Y Avg
1.53%
+90%
| Metric | CTSH | S&P 500 | Technology | 5Y Avg CTSH |
|---|---|---|---|---|
| Forward PE | 7.6x | 18.8x-59% | 22.3x-66% | — |
| Trailing PE | 9.6x | 24.4x-61% | 29.0x-67% | 17.6x-45% |
| PEG Ratio | 0.79x | 1.66x-52% | 1.51x-47% | — |
| EV/EBITDA | 5.0x | 15.2x-67% | 16.6x-70% | 10.8x-54% |
| Price/FCF | 8.0x | 20.7x-61% | 19.2x-58% | 17.9x-56% |
| Price/Sales | 1.0x | 3.1x-68% | 2.4x-60% | 2.0x-50% |
| Dividend Yield | 2.90% | 1.91% | 1.11% | 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 9.6% 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
9.6%
Dividend
2.9%
Buyback
6.7%
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 June 18, 2026
High Risk
Execution risks
Cognizant's ambitious strategic pivots, including its push into the AI infrastructure market, come with significant execution risks.
Medium
Near-term financial pressures
Despite surpassing revenue guidance, Cognizant faces near-term financial pressures that could impact its stock performance.
High Risk
Revenue growth sustainability
While Cognizant has crossed the $20 billion revenue threshold, sustaining this growth in a competitive IT services market remains a challenge.
Medium
Market valuation concerns
Cognizant's stock is trading near its 52-week low, reflecting potential market concerns about its valuation and future prospects.
Lower
Competitive pressures
As a global IT services provider, Cognizant faces intense competition in industries like financial services, healthcare, and manufacturing.
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 June 18, 2026
AI-led productivity strategy
Cognizant's focus on AI-driven productivity is highlighted by its partnerships with NVIDIA, Microsoft, and Google, contributing to strong revenue growth.
Technology modernization services
Cognizant helps companies modernize technology and reimagine processes, enabling them to stay competitive in a rapidly evolving market.
Strong revenue growth
The company has demonstrated robust Q1 revenue growth, with its stock price appreciating by approximately 7.20% following bullish coverage.
Strategic AI partnerships
Collaborations with leading tech firms like NVIDIA, Microsoft, and Google position Cognizant as a key player in bridging AI investment to enterprise value.
Attractive valuation metrics
Cognizant's trailing and forward P/E ratios of 19.59 and 15.04 respectively suggest a potentially undervalued stock with room for growth.
Institutional ownership confidence
With Vanguard Group as the top holder (10.5%), institutional ownership reflects strong confidence in Cognizant's long-term prospects.
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
$43.70
52W Range Position
1%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$43.41
+0.7% from the low
52-Week High
$87.03
-49.8% from the high
1 Month
-14.97%
3 Month
-27.52%
YTD
-46.2%
1 Year
-44.8%
3Y CAGR
-12.2%
5Y CAGR
-8.5%
10Y CAGR
-3.3%
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
7.6x
vs 5.9x median
+30% above peer median
Revenue Growth
+6.4%
vs +5.2% median
+22% above peer median
Net Margin
10.4%
vs 10.7% median
-3% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
CTS CTSH Cognizant Technology Solutions Corporation | $20.7B | 7.6x | +6.4% | 10.4% | Hold | +78.3% |
ACN ACN Accenture plc | $80.3B | 9.4x | +4.6% | 10.7% | Buy | +81.0% |
INF INFY Infosys Limited | $42.9B | 13.9x | +4.0% | 16.2% | Hold | +59.9% |
WIT WIT Wipro Limited | $25.0B | 0.2x | +5.5% | 15.1% | Hold | +207.5% |
EPA EPAM EPAM Systems, Inc. | $4.0B | 5.9x | +6.6% | 7.0% | Buy | +88.7% |
GLO GLOB Globant S.A. | $1.3B | 4.9x | +5.2% | 4.5% | Buy | +77.5% |
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 (6.7% buyback yield), with a modest 2.90% dividend — combining for 9.6% total shareholder yield. The dividend has grown for 6 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
9.6%
Dividend + buyback return per year
Buyback Yield
6.7%
Dividend Yield
2.90%
Payout Ratio
27.4%
How CTSH Splits Its Return
Div 2.90%
Buyback 6.7%
Dividend 2.90%Buybacks 6.7%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.27
Growth Streak
Consecutive years of dividend increases
6Y
3Y Div CAGR
4.7%
5Y Div CAGR
7.1%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 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
32M
Approx. Share Reduction
6.7%
Shares Outstanding
Current diluted share count from the screening snapshot
474M
At 6.7%/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, 22 rate it Buy or Strong Buy, 24 rate it Hold, and 5 rate it Sell or Strong Sell. The consensus 12-month price target is $78, implying +78.3% from the current price of $44. The bear case scenario is $44 and the bull case is $91.
02What is the CTSH stock price target for 2026?
The Wall Street consensus price target for CTSH is $78 based on 51 analyst estimates. The high-end target is $100 (+128.8% from today), and the low-end target is $59 (+35.0%). The base case model target is $69.
03Is Cognizant Technology Solutions Corporation (CTSH) stock overvalued in 2026?
CTSH trades at 7.6x 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 cheap versus peers. 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) Execution risks — Cognizant's ambitious strategic pivots, including its push into the AI infrastructure market, come with significant execution risks. (2) Revenue growth sustainability — While Cognizant has crossed the $20 billion revenue threshold, sustaining this growth in a competitive IT services market remains a challenge. (3) Near-term financial pressures — Despite surpassing revenue guidance, Cognizant faces near-term financial pressures that could impact its stock performance. 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 $22.8B (+6.4% year-over-year) and EPS of $5.55 (+18.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $23.9B in revenue.
06When does Cognizant Technology Solutions Corporation (CTSH) report its next earnings?
Cognizant Technology Solutions Corporation is expected to report its next earnings on approximately 2026-07-29. Consensus expects EPS of $1.38 and revenue of $5.5B. Over recent quarters, CTSH has beaten EPS estimates 100% of the time.
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 (2.9% yield) and share repurchases ($1.4B TTM).