CTSH
Cognizant
$41.83
▼ 4.3%Updated Today 7:15 PM ET
▼ Down 44.8% over the last 12 months
Market Cap
$20.71B
P/E
9.33x
Forward P/E (est.)
9.62x
ROE
14.8%
Revenue Growth
6.6%
EPS Growth
-3.0%
Profit Margin
10.4%
FCF Yield
10.2%
Debt / Equity
0.04x
ROIC
17.0%
Interest Coverage
82.66x
Current Ratio
2.23x
Dividend Yield
2.6%
Implied Growth (rev. DCF)
-3.1%
Rating Score
56/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CTSH's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CTSH trades near $41.83, below its 50-day average ($53.51) and 200-day average ($67.60). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 15 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. CTSH's is $2.39 (~5.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month CTSH found buyers near $43.41 (support) and sellers near $57.65 (resistance); its 52-week range is $43.41–$87.03. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 5.1× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Cognizant (CTSH) is a large-cap company in the IT Consulting & Other Services industry, part of the Information Technology sector of the S&P 500, with a market value around $20.71B.
In its latest reported year it generated about $21.11B in revenue and $2.23B in net profit.
Our model rates CTSH Neutral (56/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
3.3%
Revenue moved from $18.51B in 2021 to $21.11B in 2025, a 3.3% compound annual growth rate. The most recent year grew a steady 6.6% year over year. Slower, mature growth is common for established businesses.
Gross Margin
33.5%
Operating Margin
16.1%
Net Margin
10.6%
ROE
14.8%
Cognizant keeps about 10.4% of each sales dollar as net profit, with a 33.5% gross margin and 16.1% operating margin. Return on equity is 14.8% and return on invested capital about 17.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$750.00M
Net Debt
-$754.00M
Net cash position
Net Debt / EBITDA
-0.22x
Debt / Equity
0.04x
Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 82.7x, with a current ratio of 2.2x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $750.00M of total debt against $1.50B of cash.
Operating CF
$2.88B
Free Cash Flow
$2.60B
FCF Margin
12.3%
In the latest year Cognizant produced about $2.88B of operating cash flow and $2.60B of free cash flow after capital spending. That is a free-cash-flow yield of about 10.2% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
9.33x
P/S
1.15x
P/B
2.28x
EV / EBITDA
5.95x
CTSH trades at 9.3x trailing earnings (about 9.6x on estimated forward earnings), 1.2x sales, and 2.3x book value. Reverse-engineering today's price implies the market expects roughly -3.1% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How CTSH stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (72 S&P 500 companies), CTSH ranks #45 of 72 by our overall rating. It trades at a discount versus the sector on earnings (9.3x P/E vs. 35.6x median) with a lower return on equity (14.8% vs. 25.6%) and slower revenue growth (6.6% vs. 17.4%).
P/E vs sector
9.3x
median 35.6x
ROE vs sector
14.8%
median 25.6%
Growth vs sector
6.6%
median 17.4%
Sector rank
#45
of 72 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$34.36 – $61.85
vs. $41.83 today · expected CAGR -4% – 8%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $22.59B | $24.17B | $25.86B | $27.67B | $29.61B |
| Net income | $2.48B | $2.66B | $2.84B | $3.04B | $3.26B |
| EPS | $5.24 | $5.61 | $6.00 | $6.42 | $6.87 |
| Share price (low) | $26.21 | $28.05 | $30.01 | $32.11 | $34.36 |
| Share price (high) | $47.19 | $50.49 | $54.02 | $57.80 | $61.85 |
| CAGR (low–high) | -37% / 13% | -18% / 10% | -10% / 9% | -6% / 8% | -4% / 8% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for CTSH:
- Healthy free-cash-flow yield (~10.2%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Pays a 2.6% dividend on top of any price gains.
The case against CTSH:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Cognizant is a large-cap information technology business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 9.3x earnings, which our model scores Neutral (56/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.