olivLaw · US equity research
Cognizant Technology Solutions Corp CTSH
Services-Computer Programming Services · SIC 7371 · Vertical: Services-Computer Programming Services (SIC 7371)
Cognizant (CTSH) is one of the largest global professional services companies in technology, increasingly presenting itself as an 'AI builder'. In 2025 revenues reached 21.108 billion USD, up 7.0%, and in the second quarter of 2026 revenues grew 4.5%. Guidance for 2026 calls for constant currency growth of 4.0% to 5.5%.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Cognizant Technology Solutions Corp (CTSH) stock was 65.78 USD (+3.05% on the day), with market capitalisation 29.4 bn USD, P/E 12.0 on diluted EPS of 5.48 USD over the last 12 months, dividend yield 1.98%, beta 0.65, 52-week range 38.73–86.70 USD. Latest reported quarter (Q3 2026): revenue of 5.7 bn USD (+4.6% YoY), net income of 627.0 m USD (+128.8% YoY), diluted EPS 1.39 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 53.7
- neutral
- Bollinger (20, 2)
- 57.94 – 72.81
- in the upper half of the band · %B 0.53 · band width 22.8%
- SMA 50 / 200
- 62.35 / 58.67
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 1.22 / 1.72
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +13.1% | −1.1% | +14.2 pp | — |
| 3 months | +17.9% | −0.5% | +18.4 pp | — |
| 6 months | +28.2% | +4.4% | +23.8 pp | — |
| Year to date | −20.7% | +12.3% | −33.1 pp | — |
| 1 year | −9.7% | +13.5% | −23.2 pp | −42.9% |
| 3 years | −0.7% | +76.4% | −77.2 pp | −43.3% |
| 5 years | −17.7% | +63.7% | −81.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.1 bn | 5.1 bn | 5.2 bn | 5.4 bn | 5.3 bn | 5.4 bn | 5.5 bn | 5.7 bn |
| Cost of revenue | 3.3 bn | 3.4 bn | 3.5 bn | 3.6 bn | 3.5 bn | 3.6 bn | 3.7 bn | 3.8 bn |
| SG&A | 844.0 m | 791.0 m | 810.0 m | 833.0 m | 806.0 m | 791.0 m | 728.0 m | 841.0 m |
| Operating income | 751.0 m | 853.0 m | 817.0 m | 866.0 m | 853.0 m | 843.0 m | 874.0 m | 872.0 m |
| Depreciation & amortisation | 143.0 m | 136.0 m | 139.0 m | 135.0 m | 140.0 m | 141.0 m | 143.0 m | 149.0 m |
| Interest expense | 19.0 m | 12.0 m | 9.0 m | 8.0 m | 8.0 m | 7.0 m | 13.0 m | 19.0 m |
| Pre-tax income | 740.0 m | 872.0 m | 842.0 m | 887.0 m | 878.0 m | 867.0 m | 875.0 m | 863.0 m |
| Income tax | 199.0 m | 213.0 m | 197.0 m | 613.0 m | 235.0 m | 208.0 m | 231.0 m | 237.0 m |
| Net income | 546.0 m | 663.0 m | 645.0 m | 274.0 m | 648.0 m | 662.0 m | 636.0 m | 627.0 m |
| Diluted EPS | 1.10 ≈ | 1.34 | 1.31 | 0.56 | 1.34 ≈ | 1.39 | 1.36 | 1.39 |
| Operating cash flow | 920.0 m | 400.0 m | 398.0 m ≈ | 1.2 bn ≈ | 858.0 m | 274.0 m | 558.0 m ≈ | 1.0 bn ≈ |
| Capex | 83.0 m | 77.0 m | 67.0 m ≈ | 67.0 m ≈ | 77.0 m | 76.0 m | 99.0 m ≈ | 79.0 m ≈ |
| Dividends paid | 150.0 m | 155.0 m | 153.0 m ≈ | 151.0 m ≈ | 151.0 m | 159.0 m | 157.0 m ≈ | 149.0 m ≈ |
| Share repurchases | 154.0 m | 209.0 m | 368.0 m ≈ | 463.0 m ≈ | 338.0 m | 444.0 m | 1.2 bn ≈ | 270.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 5 percentile of its own 44-quarter history (min 8.3, median 18.5, max 32.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 16.1 bn | 16.8 bn | 16.7 bn | 18.5 bn | 19.4 bn | 19.4 bn | 19.7 bn | 21.1 bn |
| Revenue YoY | +8.9% | +4.1% | −0.8% | +11.1% | +5.0% | −0.4% | +2.0% | +7.0% |
| Net income | 2.1 bn | 1.8 bn | 1.4 bn | 2.1 bn | 2.3 bn | 2.1 bn | 2.2 bn | 2.2 bn |
| Net income YoY | +39.7% | −12.3% | −24.4% | +53.5% | +7.2% | −7.2% | +5.4% | −0.4% |
| Diluted EPS | 3.60 | 3.29 | 2.57 | 4.05 | 4.41 | 4.21 | 4.51 | 4.56 |
| Diluted EPS YoY | +42.3% | −8.6% | −21.9% | +57.6% | +8.9% | −4.5% | +7.1% | +1.1% |
| net % | 13.0% | 11.0% | 8.4% | 11.5% | 11.8% | 11.0% | 11.3% | 10.6% |
| Free cash flow | 2.2 bn | 2.1 bn | 2.9 bn | 2.2 bn | 2.2 bn | 2.0 bn | 1.8 bn | 2.6 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.9 bn USD
- Financial debt
- 576.0 m USD
- Net debt
- -1.3 bn USD
- Equity
- 15.0 bn USD
- Total assets
- 20.7 bn USD
- Debt / equity
- 0.04x
- Current ratio
- 2.14x
- ROE
- 15.2%
- ROA
- 11.0%
- FCF margin
- 12.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 16.7 bn | 18.5 bn | 19.4 bn | 19.4 bn | 19.7 bn | 21.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Cost of revenue | 10.7 bn | 11.6 bn | 12.4 bn | 12.7 bn | 13.0 bn | 14.0 bn | SEC (XBRL)· 12 Feb 2026verified |
| Gross profit | 6.0 bn ≈ | 6.9 bn ≈ | 7.0 bn ≈ | 6.7 bn ≈ | 6.8 bn ≈ | 7.1 bn ≈ | SEC (XBRL)· 12 Feb 2026derived |
| SG&A | 3.1 bn | 3.5 bn | 3.4 bn | 3.3 bn | 3.2 bn | 3.2 bn | SEC (XBRL)· 12 Feb 2026verified |
| Operating income | 2.1 bn | 2.8 bn | 3.0 bn | 2.7 bn | 2.9 bn | 3.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Depreciation & amortisation | 559.0 m | 574.0 m | 569.0 m | 555.0 m | 542.0 m | 550.0 m | SEC (XBRL)· 12 Feb 2026verified |
| EBITDA | 2.7 bn ≈ | 3.4 bn ≈ | 3.5 bn ≈ | 3.2 bn ≈ | 3.4 bn ≈ | 3.9 bn ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Interest expense | 24.0 m | 9.0 m | 19.0 m | 41.0 m | 54.0 m | 37.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Pre-tax income | 2.1 bn | 2.8 bn | 3.0 bn | 2.8 bn | 2.9 bn | 3.5 bn | SEC (XBRL)· 12 Feb 2026verified |
| Income tax | 704.0 m | 693.0 m | 730.0 m | 668.0 m | 713.0 m | 1.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Net income | 1.4 bn | 2.1 bn | 2.3 bn | 2.1 bn | 2.2 bn | 2.2 bn | SEC (XBRL)· 12 Feb 2026verified |
| Diluted EPS | 2.57 | 4.05 | 4.41 | 4.21 | 4.51 | 4.56 | SEC (XBRL)· 12 Feb 2026verified |
| Weighted average diluted shares | 541.0 m | 528.0 m | 519.0 m | 505.0 m | 497.0 m | 489.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Dividend per share | 0.88 | 0.96 | 1.08 | 1.16 | 1.20 | 1.24 | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 2.7 bn | 1.8 bn | 2.2 bn | 2.6 bn | 2.2 bn | 1.9 bn | SEC (XBRL)· 12 Feb 2026verified |
| Receivables | 3.1 bn | 3.6 bn | 3.8 bn | 3.8 bn | 4.1 bn | 4.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Current assets | 6.9 bn | 7.3 bn | 7.3 bn | 7.5 bn | 7.5 bn | 7.8 bn | SEC (XBRL)· 12 Feb 2026verified |
| Property, plant & equipment, net | 1.3 bn | 1.2 bn | 1.1 bn | 1.0 bn | 994.0 m | 933.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Goodwill | 5.0 bn | 5.6 bn | 5.7 bn | 6.1 bn | 7.0 bn | 7.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Intangibles (excl. goodwill) | 1.0 bn | 1.2 bn | 1.2 bn | 1.1 bn | 1.6 bn | 1.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Total assets | 16.9 bn | 17.9 bn | 17.9 bn | 18.5 bn | 20.0 bn | 20.7 bn | SEC (XBRL)· 12 Feb 2026verified |
| Accounts payable | 389.0 m | 361.0 m | 360.0 m | 337.0 m | 340.0 m | 308.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Short-term debt | 38.0 m | 38.0 m | 8.0 m | 33.0 m | 33.0 m | 33.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Long-term debt | 663.0 m | 626.0 m | 638.0 m | 606.0 m | 875.0 m | 543.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Current liabilities | 3.5 bn | 3.5 bn | 3.3 bn | 3.3 bn | 3.6 bn | 3.7 bn | SEC (XBRL)· 12 Feb 2026verified |
| Total liabilities | 6.1 bn | 5.9 bn | 5.5 bn | 5.3 bn | 5.6 bn | 5.7 bn | SEC (XBRL)· 12 Feb 2026verified |
| Equity | 10.8 bn † | 12.0 bn † | 12.3 bn † | 13.2 bn † | 14.4 bn † | 15.0 bn † | SEC (XBRL)· 12 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 3.3 bn | 2.5 bn | 2.6 bn | 2.3 bn | 2.1 bn | 2.9 bn | SEC (XBRL)· 12 Feb 2026verified |
| Capex | 398.0 m | 279.0 m | 332.0 m | 317.0 m | 297.0 m | 288.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Free cash flow | 2.9 bn ≈ | 2.2 bn ≈ | 2.2 bn ≈ | 2.0 bn ≈ | 1.8 bn ≈ | 2.6 bn ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Investing cash flow | -1.2 bn | -2.2 bn | -106.0 m | -331.0 m | -1.6 bn | -230.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Financing cash flow | -2.0 bn | -1.2 bn | -1.9 bn | -1.6 bn | -915.0 m | -2.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Dividends paid | 480.0 m | 509.0 m | 564.0 m | 591.0 m | 600.0 m | 610.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Share repurchases | 1.6 bn | 771.0 m | 1.4 bn | 1.1 bn | 605.0 m | 1.4 bn | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 51 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 29.4 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet67
- Valuation69
- Quality36
- Growth29
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 12.82 – 107.55 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)69.76 – 107.55 (Mid 84.36)WACC 9.1% · starting FCFF 2.4 bn USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -7.6%
- Peers: EV/Sales15.22 – 52.07 (Mid 27.02)8 companies used · median multiple 0.6x · quartiles 0.3x – 1.1xCINT, DOX, EPAM, FORTY, MWC, RDNW, WIT, XTIA
- Peers: EV/EBITDA12.82 – 69.89 (Mid 28.94)6 companies used · median multiple 3.2x · quartiles 1.4x – 7.8xCINT, EPAM, IA, MWC, RDNW, WIT
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 51/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 33.4% | 0 (on a fixed band) | 11% |
| EBIT margin · Quality | 15.7% | 74 (vs peers) | 9% |
| FCF margin · Quality | 10.8% | 43 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 2.8% | 11 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 7.0% | 65 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 0.0x | 50 (vs peers) | 6% |
| Current ratio · Balance sheet | 2.2x | 84 (on a fixed band) | 6% |
| EV/Sales · Valuation | 1.3x | 46 (vs peers) | 17% |
| FCF yield · Valuation | 8.0% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 9.6% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet67/100 · 2/2 factors with a value
- Growth29/100 · 2/2 factors with a value
- Quality36/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation69/100 · 2/2 factors with a value
Memo
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION (CTSH). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 21.1 bn USD in 2025; YoY growth 7.0%; net margin 11.8%; ROE 17.4%; net debt/EBITDA 0.0x.
The estimated value range is 15.22–69.89 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 28.94 USD, the price of 65.78 USD leaves a potential of -56.0% (value / price − 1) and a margin of safety of -127.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 51/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 15.7%
- Current ratio: 2.2x
- FCF yield: 8.0%
- Shareholder yield (distributions): 9.6%
What contradicts it
- Gross margin: 33.4%
- Revenue CAGR 3Y: 2.8%
Versus the vertical median
Services-Computer Programming Services (SIC 7371) · same industry (4-digit SIC) · compared with 32 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| INFYInfosys Limited | 49.6 bn | 16.1 | 29.0% | 16.4% | +3.9% | −30% / −30% |
| ZSZscaler Inc | 36.6 bn | — | -2.9% | -1.9% | +25.4% | −11% / +14% |
| CTSHCognizant Technology Solutions Corporation | 29.4 bn | 12.0 | 17.4% | 11.8% | +7.0% | −10% / −1% |
| VRSNVerisign Inc | 28.5 bn | 33.6 | — | 49.1% | +6.4% | +26% / +50% |
| WITWipro Limited | 22.7 bn | 15.4 | 16.4% | 14.7% | −3.2% | −21% / −11% |
| EPAMEpam Systems, Inc. | 7.1 bn | 18.6 | 11.2% | 7.2% | +15.4% | −27% / −47% |
| DOCSDoximity, Inc. | 6.2 bn | 40.9 | 17.2% | 25.5% | +13.1% | −33% / +49% |
| DOXAmdocs Limited | 4.9 bn | 10.3 | 14.1% | 9.9% | +2.4% | −43% / −48% |
| RGTIRigetti Computing, Inc. | 3.7 bn | — | -43.8% | -1,787.4% | −34.3% | −56% / +958% |
| FORTYFormula Systems (1985) Ltd. | 1.8 bn | 23.4 | 12.2% | 2.9% | +5.2% | −20% / +96% |
| MGRTMega Fortune Co Ltd | 1.6 bn | 698.9 | 21.1% | 16.1% | +233.3% | +1,864% / unavailable |
| PERIPerion Network Ltd. | 446.8 m | — | -1.1% | -1.8% | −11.7% | +12% / −59% |
| MFImF International Limited | 367.8 m | 36.4 | 3.9% | 232.8% | +29.4% | −68% / unavailable |
| IAInnovative Solutions And Support, Inc. | 353.7 m | 18.8 | 28.5% | 20.5% | +78.6% | +103% / +167% |
| GDEVGDEV Inc. | 176.1 m | 2.6 | — | 17.1% | −3.9% | −44% / −57% |
| ATGLAlpha Technology Group Ltd | 146.5 m | — | -184.7% | -952.0% | −40.2% | −61% / −39% |
| MLGOMicroAlgo Inc. | 135.7 m | 1.2 | 7.6% | 30.2% | −20.3% | −61% / −100% |
| MWCMicware Co., Ltd. | 82.0 m | 8.1 | 20.0% | 7.3% | unavailable | unavailable / unavailable |
| PDCPerpetuals.com Ltd | 74.9 m | — | -75.8% | -1,069.9% | −47.0% | −61% / −13% |
| CINTCI&T Inc | 73.8 m | 10.3 | 13.8% | 8.3% | +11.5% | −31% / −40% |
| CYCUCycurion, Inc. | 65.1 m | — | -76.7% | -98.0% | −14.8% | −91% / unavailable |
| XTIAXti Aerospace, Inc. | 37.7 m | — | — | -89.6% | +602.4% | −40% / −100% |
| MNDOMind Cti Ltd | 18.3 m | 6.9 | 11.0% | 13.4% | −9.3% | −24% / −53% |
| CHGAChange Agents Corporation | 17.8 m | — | -606.9% | -643.1% | +6.2% | −97% / −99% |
| RDNWRideNow Group, Inc. | 11.7 m | — | — | -0.8% | −10.5% | +7% / −9% |
1- and 3-year price returns: for CTSH from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 40.13 Total return -37% · Per year -37% | 71.01 Total return 10% · Per year 10% | 107.04 Total return 65% · Per year 65% |
| 3 years | 37.63 Total return -38% · Per year -15% | 75.04 Total return 21% · Per year 6% | 124.40 Total return 97% · Per year 25% |
| 5 years | 35.29 Total return -39% · Per year -9% | 79.31 Total return 32% · Per year 6% | 144.57 Total return 135% · Per year 19% |
- Exit P/E± 18.76
- Net margin± 13.13
- Annual revenue growth± 10.96
- Annual dilution± 1.10
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (29 Oct 2026 · results).
In brief
Cognizant (CTSH) is one of the largest global professional services companies in technology, increasingly presenting itself as an 'AI builder'. In 2025 revenues reached 21.108 billion USD, up 7.0% 1, and in the second quarter of 2026 revenues grew 4.5% 3. Guidance for 2026 calls for constant currency growth of 4.0% to 5.5% 3.
SWOT
Strengths
- The company has a broad base of large clients and an integrated offering that combines industry knowledge with technology 1.
- The global delivery model and partnerships with major technology providers give operational flexibility 1.
- Margins have improved in recent periods thanks to efficiency and cost programs 1.
Weaknesses
Opportunities
Risks
- Dependence on US and European clientshigh
Most revenue comes from these regions, and an economic slowdown there could reduce demand.
- Risk of replacement by AIhigh
Traditional services may be replaced by AI, which could reduce workload and pricing.
- Intense competitionmedium
Pressure from competitors and clients' in-house teams could weigh on margins.
- Costs and regulation in Indiamedium
Changes in labor laws and tax treaties could raise costs or taxes.
- Dependence on technology partnerslow
Changes in terms or access to partner technology could affect service delivery.
Investment thesis
What would need to be true (bull case)
- If demand for AI and modernization continues, the company could accelerate revenue and profit growth.
- Strong growth in the Financial Services segment suggests the market strategy may be working.
- Efficiency programs could keep improving margins.
What would break the thesis
- If AI automation replaces traditional services faster, revenue growth could slow.
- Competition and pricing pressure could limit margin gains.
- If economic conditions in the United States or Europe worsen, clients could postpone projects.
What to watch
- Third-quarter results and revised guidanceQ3 2026
- Execution of Project Leap and realized savings2026
- Integration of Astreya and effect on margins2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (29 Oct 2026 · results).
The business
Cognizant offers consulting, application development, systems integration, quality engineering, application maintenance, infrastructure, security and business process services, all built around AI, cloud and data 1. Its global delivery model combines teams at client locations with regional and offshore delivery centers, and the company drives its strategy through AI investments, reskilling and a broad partner ecosystem 1. At the end of 2025 it had approximately 351,600 employees 1.
In fiscal 2025 the GAAP operating margin rose to 16.1% and the adjusted operating margin to 15.8% 1, supported by NextGen savings and operational efficiencies, while the Belcan acquisition diluted margins 1. GAAP diluted EPS was 4.56 USD and adjusted diluted EPS 5.28 USD 1. In 2026 the company launched Project Leap, aimed at investments in integrated offerings and AI, with expected costs of 230 to 320 million USD 2.
Segments
Financial Services
This is the largest and most mature segment, covering banks, capital markets, payments and insurers, and it grew 7.3% in fiscal 2025 1. Demand comes from modernizing legacy systems and adopting cloud, data and AI for customer experience and risk management 1. In the second quarter of 2026 the segment grew by double digits year over year for a second consecutive quarter, according to the release 3.
Market context
Trends
- Demand for AI and modernizationtailwind
Clients are investing in AI, cloud and data to modernize their systems, and Cognizant is expanding its capabilities in this area 1. If this demand holds, it could support revenue growth.
- AI automation may reduce demandheadwind
Some historically performed services may be replaced by AI or automation, which could reduce demand and the pricing the company obtains 1.
- Macroeconomic uncertaintyheadwind
Tariffs, inflation and geopolitical tensions could lead clients to postpone projects, affecting revenue predictability 2.
- Partner ecosystemmixed
Partnerships with large cloud and AI providers can broaden the offer, but they can also create pressure if partners become competitors 1.
Competitive position
Direct competitors include large consulting and integration firms such as Accenture, Infosys, Tata Consultancy Services, Wipro and IBM Consulting 1. Competition is based on reputation, AI capabilities, competitive pricing and financial stability 1.
The company can differentiate through its partner ecosystem and AI capabilities, but market pricing pressure could reduce margins, especially if competitors are willing to take on more risk 1.
- IBM Consulting
Consulting arm of a large technology company, named as a direct competitor.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Hochstein: Markets Should Be Cognizant of Strike RiskBloomberg Markets · 03 Nov 2026 · EN
- Cognizant, Infosys, Tata, Wipro and HCL among IT firms suspended from U.S. green card programmeThe Hindu — International · 08 Oct 2026 · EN
- How Is Cognizant’s Stock Performance Compared to Other Dividend StocksYahoo Finance — News · 16 Sept 2026 · EN
- Cognizant CFO: AI Pressures IT Spending, but BFSI Growth Stays StrongYahoo Finance — News · 13 Sept 2026 · EN
- Cognizant Says AI Creates Jobs, Its Own Restructuring Says OtherwiseYahoo Finance — News · 11 Sept 2026 · EN
- Cognizant (CTSH): Can 17 AI Agents Turn Productivity Into Revenue?Yahoo Finance — News · 10 Sept 2026 · EN
- U.S. suspends permanent labour certification filings by Cognizant, ClouderaThe Hindu — International · 09 Sept 2026 · EN
- Cognizant construiește viitorul prin inițiativa “Cognizant Future Talent in Tech Romania”HotNews.ro · 13 Aug 2026 · RO
- Cognizant România lansează un program de educație și competențe digitale pentru copii / Investiția se ridică la peste 500.000 de dolariEconomedia · 12 Aug 2026 · RO
- Cât de mult contează pentru tinerii care vor o carieră în IT un program de pre-employment? Raluca Dolan, Cognizant Romania: E şi responsabilitatea companiilor mari din IT să contribuie activ la formarea generaţiei următoareZiarul Financiar · 15 May 2026 · RO
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report06 Oct 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report10 Jul 2026Regulation FD disclosure · Financial statements and exhibits
- Current report03 Jun 2026Shareholder vote
- Current report21 May 2026Creation of a direct financial obligation
- Current report18 May 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report29 Apr 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Cognizant Technology Solutions Corp · 12 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Cognizant Technology Solutions Corp · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Cognizant Technology Solutions Corp · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.