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Cognizant Technology Solutions (CTSH)
NASDAQ:CTSH
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Cognizant (CTSH) Price & Analysis

2,273 Followers

CTSH Stock Chart & Stats

$45.45
$2.44(5.67%)
At close: 4:00 PM EDT
$45.45
$2.44(5.67%)

Bulls Say, Bears Say

Bulls Say
Strong Balance Sheet And Low LeverageCognizant’s very low TTM debt-to-equity (~0.07) and sizable equity base give durable financial flexibility to fund acquisitions, buybacks, and investments through cycles. This conservatism supports strategic optionality and resilience versus peers during downturns or investment waves.
Robust Free Cash Flow ConversionSustained FCF of roughly $2.6B and conversion near 90% of net income demonstrates durable cash generation from services operations. Strong FCF underpins dividends, buybacks, M&A funding and de-risks execution of multi-year investments like AI platforms without stressing liquidity.
AI And Platform Momentum With Strategic PartnershipsRapid AI integration, thousands of engagements and expanded partner ties (Google, OpenAI, Anthropic) plus platform revenue like TriZetto (> $1.1B) create a structural shift from labor arbitrage to higher-value, recurring platform and AI-enabled services, improving long-term mix and margin potential.
Bears Say
Margin Compression Vs Prior YearsWhile margins are recovering, the company has experienced structural margin compression since 2021–2022, implying persistent pricing pressure, cost inflation or mix shifts toward lower-margin work. This could constrain long-term operating leverage unless higher-value mix gains accelerate materially.
Working-capital Pressure And Higher DSOOperating cash flow lagging net income (≈78% conversion) and a rising DSO profile are signs of working-capital strain that can cause cash volatility. Persistent receivables elongation increases funding needs and can amplify financing costs or limit reinvestment capacity over several quarters.
Increased Reliance On Revolver For M&A And BuybacksUsing a $1B revolver to finance acquisitions and aggressive buybacks raises interest costs and modestly increases leverage. While manageable now, sustained reliance on short-term credit to fund strategic moves can elevate refinancing and interest-rate risk, reducing financial margin for investments.

Cognizant News

CTSH FAQ

What was Cognizant Technology Solutions’s price range in the past 12 months?
Cognizant Technology Solutions lowest stock price was $37.08 and its highest was $87.03 in the past 12 months.
    What is Cognizant Technology Solutions’s market cap?
    Cognizant Technology Solutions’s market cap is $23.84B.
      When is Cognizant Technology Solutions’s upcoming earnings report date?
      Cognizant Technology Solutions’s upcoming earnings report date is Nov 04, 2026 which is in 97 days.
        How were Cognizant Technology Solutions’s earnings last quarter?
        Cognizant Technology Solutions released its earnings results on Jul 29, 2026. The company reported $1.37 earnings per share for the quarter, missing the consensus estimate of $1.377 by -$0.007.
          Is Cognizant Technology Solutions overvalued?
          According to Wall Street analysts Cognizant Technology Solutions’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Cognizant Technology Solutions pay dividends?
            Cognizant Technology Solutions pays a Quarterly dividend of $0.33 which represents an annual dividend yield of 2.29%. See more information on Cognizant Technology Solutions dividends here
              What is Cognizant Technology Solutions’s EPS estimate?
              Cognizant Technology Solutions’s EPS estimate is 1.47.
                How many shares outstanding does Cognizant Technology Solutions have?
                Cognizant Technology Solutions has 473,869,480 shares outstanding.
                  What happened to Cognizant Technology Solutions’s price movement after its last earnings report?
                  Cognizant Technology Solutions reported an EPS of $1.37 in its last earnings report, missing expectations of $1.377. Following the earnings report the stock price went up 11.25%.
                    Which hedge fund is a major shareholder of Cognizant Technology Solutions?
                    Currently, no hedge funds are holding shares in CTSH
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Cognizant Technology Solutions

                      Cognizant Technology Solutions Corporation functions as a global professional services firm, delivering a comprehensive suite of consulting, technology, and outsourcing solutions across North America, Europe, and other international markets. Its operations are structured into four primary divisions: Financial Services, Healthcare, Products and Resources, and Communications, Media and Technology. Within the Financial Services sector, Cognizant provides advanced services such as enhancing customer experiences, implementing robotic process automation (RPA), and leveraging analytics and artificial intelligence (AI) to address needs in areas like digital lending, fraud prevention, and modern payment systems. For its Healthcare clients, the company focuses on navigating industry shifts toward consumer-centric models, outcome-based agreements, and digital health initiatives, striving to deliver an integrated, seamless, and patient-focused omnichannel experience. Furthermore, Cognizant assists in optimizing operations across various functions, including clinical development, pharmacovigilance, manufacturing, claims management, enrollment procedures, membership administration, and billing processes. Its clientele in this domain spans healthcare providers, payers, and life sciences organizations, encompassing pharmaceutical, biotechnology, and medical device firms. In the Products and Resources segment, the company develops solutions tailored for manufacturers, retailers, and entities within the travel and hospitality sectors, alongside those engaged in logistics, energy, and utility services. Within the Communications, Media and Technology division, Cognizant supports businesses in creating digital content, crafting personalized user experiences, and expediting digital engineering efforts. This includes serving information, media, entertainment, communications, and technology enterprises. Established in 1994, the company maintains its primary corporate office in Teaneck, New Jersey.

                      Cognizant (CTSH) Earnings & Revenues

                      CTSH Company Deck

                      CTSH Earnings Call

                      Q2 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call conveyed a predominantly positive operational and strategic picture: revenue growth, margin expansion, strong bookings and large‑deal momentum (particularly in financial services), accelerated AI adoption and platform initiatives, meaningful share repurchases, and healthy free cash flow. Notable near‑term headwinds include Project LEAP costs, India labor reforms run‑rate impacts, higher interest expense from revolver use for acquisitions and buybacks, higher DSO, some industry pockets of muted demand, and observable AI execution/ROI challenges across a portion of the Global 2000. On balance, the positive growth, margin recovery, and AI‑led strategy and execution appear to outweigh the lowlights.View all CTSH earnings summaries

                      CTSH Revenue Breakdown

                      30.06%30.06%29.15%24.23%16.56%
                      30.06% Health Sciences
                      29.15% Financial Services
                      24.23% Products and Resources
                      16.56% Communications, Media and Technology
                      tipranks

                      CTSH Stock 12 Month Forecast

                      Average Price Target

                      $61.18
                      ▲(34.60% Upside)
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