A Business at a Glance
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COGNIZANT TECHNOLOGY SOLUTIONS CORP
CTSH
$22.2B
Mkt Cap
$45.45
+5.67%
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a current P/E ratio of 10.0, compared to its historical median P/E of 18.0. The stock is currently considered Cheap based on its historical valuation range.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a 5-year average return on invested capital (ROIC) of 18.7%. This indicates strong capital allocation and a potential competitive advantage.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a market capitalization of $21.5B. It is classified as a large-cap stock.
Yes, COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) pays a dividend with a trailing twelve-month yield of 2.85%. The company also returns capital through share buybacks, with a buyback yield of 7.49%.
Based on historical P/E analysis, COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) appears cheap. The current P/E of 10.0 is 45% below its historical median of 18.0. The estimated fair value CAGR (P/E method) is 7.0%.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) operates in the Services-Computer Programming Services industry, within the Technology sector.
Cognizant is a leading professional services company that helps clients modernize technology, reimagine processes, and transform experiences through AI-driven solutions and strategic consulting. The company operates across four industry-based segments—Health Sciences, Financial Services, Products and Resources, and Communications, Media and Technology—serving healthcare providers, payers, life sciences companies, financial institutions, manufacturers, retailers, and media/technology enterprises globally. Cognizant's service delivery model combines consulting, application development, systems integration, quality engineering, infrastructure and security, business process services, and automation, organized into seven integrated practices including Core Technologies and Insights, Enterprise Platform Services, Industry Solutions, Intuitive Operations and Automation, Software and Platform Engineering, Cognizant Moment (digital experience), and Security. The company employs a hybrid delivery model with client-facing teams at customer locations and dedicated global and regional delivery centers, enabling tailored, industry-specific solutions that leverage proprietary platforms, accelerators, and ecosystem partnerships with hyperscalers and enterprise software providers. Revenue is generated through a mix of time-and-materials contracts, fixed-price engagements, and business process outsourcing services, with the company increasingly shifting toward outcome-based pricing models and AI-led productivity solutions that help clients achieve measurable business results while defending against digital-native competitors.
【AI-driven margin expansion】 Management expects Project Leap, a multi-year operational modernization program, to deliver approximately $200–300 million in savings during 2026, with substantially higher benefits realized in 2027, enabling the company to reinvest roughly two-thirds of savings into AI capabilities, integrated offerings, and partnerships while dedicating one-third to workforce upskilling. The company is raising its 2026 adjusted operating margin guidance to 16%–16.2%, representing 20–40 basis points of year-over-year expansion, building on 50 basis points of margin growth achieved in 2025 and reflecting confidence in long-term margin expansion aspirations. While the macroeconomic environment remains complex with heightened uncertainty affecting near-term discretionary spending, management expects large deal ramps and full contributions from recent acquisitions to drive meaningful second-half performance, with some improvement in discretionary spending anticipated in the second half compared to near-term assumptions. The company is positioning itself as an AI builder by scaling agentic AI solutions across client landscapes, with pioneering clients progressing from AI productivity gains to unlocking new experiences, products, and services, while maintaining an active M&A strategy aligned with this strategic direction.
| Metric | Target | Period |
|---|---|---|
| Revenue growth | 4%-6.5% | FY2026 |
| Adjusted diluted EPS | $5.63-$5.77 | FY2026 |
| Project Leap savings | $200 million-$300 million | 2026 |
| Project Leap restructuring costs | $230 million-$320 million | 2026 |
| Capital return to shareholders | approximately $1.6 billion | FY2026 |
Revenue growth (FY2026): “For the full year, we expect revenue to grow 4%-6.5% in constant currency.”
Adjusted diluted EPS (FY2026): “This leads to EPS guidance of $5.63-$5.77, representing 7%-9% growth.”
Project Leap savings (2026): “The program is expected to deliver savings in 2026 of approximately $200 million-$300 million with a full year benefit in 2027.”
Project Leap restructuring costs (2026): “As part of this program, we expect to record costs of $230 million-$320 million, with substantially all incurred in 2026.”
Capital return to shareholders (FY2026): “For 2026, we still expect to return approximately $1.6 billion of capital to shareholders, including $1 billion towards share repurchases and the remainder towards our regular dividend.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 21.4B | 21.1B | 19.7B | 19.4B | 19.4B | 18.5B |
| Net Income | 2.2B | 2.2B | 2.2B | 2.1B | 2.3B | 2.1B |
| EPS | $4.64 | $4.56 | $4.51 | $4.21 | $4.41 | $4.05 |
| Free Cash Flow | 2.5B | 2.6B | 1.8B | 2.0B | 2.2B | 2.2B |
| ROIC | 15.3% | 14.9% | 17.6% | 18.3% | 21.1% | 21.6% |
| Gross Margin | - | 33.7% | 34.3% | 34.6% | 35.9% | 37.3% |
| Debt/Equity | 0.04 | 0.08 | 0.10 | 0.10 | 0.13 | 0.14 |
| Dividends/Share | $1.30 | $1.24 | $1.20 | $1.16 | $1.08 | $0.96 |
| Operating Income | 3.4B | 3.4B | 2.9B | 2.7B | 3.0B | 2.8B |
| Operating Margin | 15.8% | 16.1% | 14.7% | 13.9% | 15.3% | 15.3% |
| ROE | 14.8% | 15.2% | 16.2% | 16.7% | 18.8% | 18.7% |
| Shares Outstanding | 474M | 489M | 497M | 505M | 519M | 528M |
COGNIZANT TECHNOLOGY SOLUTIONS CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
COGNIZANT TECHNOLOGY SOLUTIONS CORP trades at 10.0x trailing earnings, compared to its 15-year median P/E of 18.0x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 8.4x vs a median of 16.9x. The company's 5-year average ROIC is 18.7% with a gross margin of 35.2%. Total shareholder yield (dividends + buybacks) is 10.3%. At current prices, the estimated annualized return to fair value is -0.5%.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) reported annual revenue of $21.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a net profit margin of 10.6%. This is a healthy margin.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) generated $2.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a debt-to-equity ratio of 0.08. This indicates a conservatively financed balance sheet.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) reported earnings per share (EPS) of $4.56 in its most recent fiscal year.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a return on equity (ROE) of 15.2%. This indicates the company generates strong returns for shareholders.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a 5-year average gross margin of 35.2%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a book value per share of $30.70, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects Project Leap, a multi-year operational modernization program, to deliver approximately $200–300 million in savings during 2026, with substantially higher benefits realized in 2027, enabling the company to reinvest roughly two-thirds of savings into AI capabilities, integrated offerings, and partnerships while dedicating one-third to workforce upskilling. The company is raising its 2026 adjusted operating margin guidance to 16%–16.2%, representing 20–40 basis points of year-over-year expansion, building on 50 basis points of margin growth achieved in 2025 and reflecting confidence in long-term margin expansion aspirations. While the macroeconomic environment remains complex with heightened uncertainty affecting near-term discretionary spending, management expects large deal ramps and full contributions from recent acquisitions to drive meaningful second-half performance, with some improvement in discretionary spending anticipated in the second half compared to near-term assumptions. The company is positioning itself as an AI builder by scaling agentic AI solutions across client landscapes, with pioneering clients progressing from AI productivity gains to unlocking new experiences, products, and services, while maintaining an active M&A strategy aligned with this strategic direction.
Based on recent SEC filings and earnings calls, COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has provided the following forward guidance: Revenue growth: 4%-6.5% (FY2026); Adjusted diluted EPS: $5.63-$5.77 (FY2026); Project Leap savings: $200 million-$300 million (2026); Project Leap restructuring costs: $230 million-$320 million (2026); Capital return to shareholders: approximately $1.6 billion (FY2026).