CTSH
TechnologyCognizant Technology Solutions Corporation · Information Technology Services · $25B
What is Cognizant Technology Solutions Corporation?
Cognizant Technology Solutions is a large-cap professional services firm delivering consulting, technology, and outsourcing solutions to clients across North America, Europe, and global markets. Founded in 1994 and headquartered in Teaneck, New Jersey, it serves industries from financial services to healthcare.
Cognizant generates revenue by helping enterprises modernize operations through IT services, digital transformation consulting, and business process outsourcing. Its four segments — Financial Services, Healthcare, Products and Resources, and Communications, Media and Technology — each address sector-specific challenges. Clients pay for ongoing managed services, project-based consulting, and outcome-driven contracts, giving the company a recurring, relationship-oriented revenue model.
Cognizant was founded in 1994 and is headquartered in Teaneck, New Jersey.
- Digital transformation consulting and IT outsourcing
- AI, analytics, and robotic process automation services
- Healthcare IT and life sciences process solutions
- Digital engineering and personalized content services
- Next-generation payments and fraud detection platforms
Is CTSH a Good Stock to Buy?
UQS Score rates CTSH as Good overall, reflecting a balanced but mixed profile across its five pillars.
The standout pillar for Cognizant is Risk, which rates Strong — suggesting the business carries relatively low financial and operational risk compared to sector peers. Valuation is rated Attractive, meaning the stock does not appear expensive relative to its fundamentals, which may interest value-oriented investors.
Growth and Moat both rate Weak, indicating that Cognizant faces meaningful competitive pressure and has not demonstrated a clear structural advantage or above-average expansion trajectory. Quality sits at Neutral, suggesting room for improvement in underlying business fundamentals.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does CTSH pay dividends?
Yes — Cognizant Technology Solutions Corporation pays a dividend.
Cognizant pays a regular dividend, making it one of the few large-cap IT services companies to return cash directly to shareholders. This reflects the company's relatively stable cash generation and mature business model. Income-focused investors may find the dividend cadence appealing, though the payout should be weighed alongside the company's Weak Growth profile.
When does CTSH report earnings?
Cognizant reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Revenue trends have been measured, consistent with the Weak Growth pillar rating. The company has maintained financial discipline, which supports its Strong Risk profile. Margin management and segment mix remain key themes in each reporting period.
For the most recent quarter's results, visit Cognizant's investor relations page directly.
CTSH Price History
-8.9% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Cognizant Technology Solutions Corporation?
Based on Cognizant Technology Solutions Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
CTSH Long-term Outlook
Cognizant's fundamental outlook is shaped by a tension between its low-risk financial profile and its limited near-term growth momentum. The Attractive Valuation rating suggests the market may already be pricing in a cautious growth trajectory. Structural demand for IT outsourcing and digital transformation provides a long-term tailwind, but the Weak Moat rating signals that pricing power and client retention face ongoing pressure from a crowded competitive landscape.
Growth drivers
- Enterprise demand for AI integration and automation services
- Healthcare IT modernization and life sciences outsourcing
- Expansion of digital engineering services in media and communications
Key risks
- Intense competition limiting pricing power and contract wins
- Slow revenue growth constraining long-term compounding potential
- Client budget sensitivity in a softening IT spending environment
CTSH vs Peers
Cognizant operates in a competitive professional services and IT outsourcing landscape alongside several large-cap peers.
Fiserv focuses primarily on financial technology infrastructure and payment processing, giving it a more product-oriented revenue model compared to Cognizant's services-led approach.
FIS concentrates on banking and capital markets technology platforms, competing with Cognizant's Financial Services segment but with a heavier software and licensing mix.
CGI is a Canadian IT services firm with a similarly broad consulting and outsourcing model, making it one of Cognizant's closest direct competitors in government and enterprise IT.
Frequently Asked Questions
What does Cognizant Technology Solutions do?
Cognizant provides IT consulting, technology services, and business process outsourcing to large enterprises. It operates across four industry segments — Financial Services, Healthcare, Products and Resources, and Communications, Media and Technology — helping clients modernize operations and adopt digital technologies.
Does CTSH pay dividends?
Yes, Cognizant pays a regular dividend. This is relatively uncommon among large-cap IT services companies and reflects the firm's stable cash generation. Investors seeking income alongside technology exposure may find this appealing, though dividend sustainability should always be evaluated in context of overall business performance.
When does CTSH report earnings?
Cognizant reports financial results on a quarterly basis, in line with standard US-listed company practice. For exact dates and the most recent results, check the investor relations section of Cognizant's official website.
Is CTSH a good stock to buy?
UQS Score rates CTSH as Good overall. The stock carries a Strong Risk rating and an Attractive Valuation, which may suit risk-conscious investors. However, Weak Growth and Moat ratings suggest limited competitive differentiation and modest expansion prospects. The full pillar breakdown is available to UQS Pro members.
Is CTSH overvalued?
Based on the UQS Valuation pillar, CTSH is rated Attractive — meaning the stock does not appear expensive relative to its fundamentals. This could reflect the market's tempered expectations for growth, which may create an entry point for investors comfortable with a slower-growth, lower-risk profile.
How does CTSH compare to its competitors?
Cognizant competes with firms like Fiserv, FIS, and CGI in IT services and financial technology. Unlike more product-focused peers, Cognizant's model is heavily services- and consulting-driven. Its Attractive Valuation may compare favorably to some peers, though its Weak Moat suggests less pricing power than more specialized competitors.
What is CTSH's market cap bracket?
Cognizant is classified as a large-cap company, placing it among the more established and widely followed names in the IT services sector. Large-cap status generally implies greater liquidity and institutional coverage compared to mid- or small-cap peers.
Who founded Cognizant Technology Solutions?
Cognizant was founded in 1994, originally as an in-house technology unit before becoming an independent company. Founding context and leadership history are widely available through public sources and Cognizant's official corporate history page.
Is CTSH a long-term quality investment?
As a long-term quality indicator, CTSH's UQS profile presents a mixed picture. The Strong Risk and Attractive Valuation pillars support stability, but Weak Growth and Moat ratings suggest the company may struggle to compound value at above-average rates over time. Long-term investors should weigh these factors carefully.
What is the main competitive advantage of Cognizant?
Cognizant's scale, deep industry vertical expertise, and long-standing client relationships provide some degree of stickiness. However, the UQS Moat pillar rates Weak, indicating these advantages may not be durable enough to consistently fend off competition or sustain pricing power across its service lines.
What sector does CTSH belong to?
Cognizant is classified in the Technology sector, specifically within IT services and consulting. It serves clients across financial services, healthcare, retail, and media — giving it broader industry exposure than many pure-play technology companies.
Is CTSH a growth stock or value stock?
Based on UQS pillar labels, CTSH leans toward value rather than growth. The Valuation pillar is Attractive while the Growth pillar is Weak, suggesting the stock may appeal more to value-oriented investors than those seeking high-growth technology exposure.
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Pro Analysis
CTSH — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 11, 2026 | 54.0 | 51.9 | 32.0 | 20.6 | 92.8 | 100.0 | +0.2 |
| May 10, 2026 | 53.8 | 50.9 | 32.0 | 20.6 | 92.8 | 100.0 | +3.2 |
| May 9, 2026 | 50.6 | 50.9 | 32.0 | 4.8 | 92.8 | 100.0 | -3.5 |
| May 4, 2026 | 54.1 | 51.8 | 32.0 | 20.6 | 93.8 | 100.0 | 0.0 |
| Apr 26, 2026 | 54.1 | 51.8 | 32.0 | 20.3 | 93.8 | 99.9 | +0.1 |
| Apr 24, 2026 | 54.0 | 51.8 | 32.0 | 20.3 | 93.8 | 99.2 | +0.3 |
| Apr 23, 2026 | 53.7 | 50.7 | 32.0 | 20.4 | 93.8 | 99.2 | +0.1 |
| Apr 21, 2026 | 53.6 | 50.4 | 32.0 | 20.4 | 93.8 | 99.2 | 0.0 |
| Apr 19, 2026 | 53.6 | 50.1 | 32.0 | 20.4 | 93.8 | 99.2 | 0.0 |
| Apr 18, 2026 | 53.6 | 50.1 | 32.0 | 20.4 | 93.8 | 99.4 | 0.0 |
CTSH — Pillar Breakdown
Quality
— 51.9/100 (25%)Cognizant Technology Solutions Corporation has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 20.6/100 (20%)Cognizant Technology Solutions Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 92.8/100 (15%)Cognizant Technology Solutions Corporation carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 100.0/100 (15%)Cognizant Technology Solutions Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 32/100 (25%)Cognizant Technology Solutions Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CTSH.
Score Composition
Financial Data
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How is the CTSH UQS Score Calculated?
The UQS (Unified Quality Score) for Cognizant Technology Solutions Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Cognizant Technology Solutions Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Cognizant Technology Solutions Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.