COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does COGNIZANT TECHNOLOGY SOLUTIONS CORP Do?
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. The company offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It also provides solution to manufacturers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to information, media and entertainment, and communications and technology companies. The company was founded in 1994 and is headquartered in Teaneck, New Jersey. COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) is classified as a large-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Brian J. Humphries and employs approximately 355,300 people, headquartered in TEANECK, New Jersey. With a market capitalization of $29.3B, CTSH is one of the prominent companies in the Technology sector.
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) Stock Rating — Reduce (April 2026)
As of April 2026, COGNIZANT TECHNOLOGY SOLUTIONS CORP receives a Reduce rating with a composite score of 45.1/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.CTSH ranks #2,398 out of 4,446 stocks in our coverage universe. Within the Technology sector, COGNIZANT TECHNOLOGY SOLUTIONS CORP ranks #260 of 584 stocks, placing it in the upper half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CTSH Stock Price and 52-Week Range
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) currently trades at $58.22. The stock lost $0.98 (1.7%) in the most recent trading session. The 52-week high for CTSH is $87.03, which means the stock is currently trading -33.1% from its annual peak. The 52-week low is $60.03, putting the stock -3.0% above its annual trough. Recent trading volume was 5.2M shares, reflecting moderate market activity.
Is CTSH Overvalued or Undervalued? — Valuation Analysis
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 13.59x, compared to the Technology sector average of 45.27x — a discount of 70%. The price-to-book ratio stands at 1.96x, versus the sector average of 3.16x. The price-to-sales ratio is 1.41x, compared to 1.06x for the average Technology stock. On an enterprise value basis, CTSH trades at 7.70x EV/EBITDA, versus 12.79x for the sector.
Based on these multiples, COGNIZANT TECHNOLOGY SOLUTIONS CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
COGNIZANT TECHNOLOGY SOLUTIONS CORP Profitability — ROE, Margins, and Quality Score
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.4%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 10.5% versus the sector average of -1.0%.
On a margin basis, COGNIZANT TECHNOLOGY SOLUTIONS CORP reports gross margins of 33.9%, compared to 50.9% for the sector. The operating margin is 15.7% (sector: -0.5%). Net profit margin stands at 10.5%, versus -1.5% for the average Technology stock. Revenue growth is running at 11.7% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CTSH Debt, Balance Sheet, and Financial Health
COGNIZANT TECHNOLOGY SOLUTIONS CORP has a debt-to-equity ratio of 38.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.14x, indicating strong short-term liquidity. Total debt on the balance sheet is $1.02B. Cash and equivalents stand at $2.34B.
CTSH has a beta of 0.90, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for COGNIZANT TECHNOLOGY SOLUTIONS CORP is 69/100, reflecting average volatility within the normal range for its sector.
COGNIZANT TECHNOLOGY SOLUTIONS CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, COGNIZANT TECHNOLOGY SOLUTIONS CORP reported revenue of $20.82B and earnings per share (EPS) of $4.57. Net income for the quarter was $2.16B. Gross margin was 33.9%. Operating income came in at $3.27B.
In FY 2025, COGNIZANT TECHNOLOGY SOLUTIONS CORP reported revenue of $21.11B and earnings per share (EPS) of $4.57. Net income for the quarter was $2.23B. Revenue grew 7.0% year-over-year compared to FY 2024. Operating income came in at $3.39B.
In Q3 2025, COGNIZANT TECHNOLOGY SOLUTIONS CORP reported revenue of $5.42B and earnings per share (EPS) of $0.56. Net income for the quarter was $274M. Gross margin was 33.9%. Revenue grew 7.4% year-over-year compared to Q3 2024. Operating income came in at $866M.
In Q2 2025, COGNIZANT TECHNOLOGY SOLUTIONS CORP reported revenue of $5.25B and earnings per share (EPS) of $1.31. Net income for the quarter was $645M. Revenue grew 8.1% year-over-year compared to Q2 2024. Operating income came in at $817M.
Over the past 8 quarters, COGNIZANT TECHNOLOGY SOLUTIONS CORP has demonstrated a growth trajectory, with revenue expanding from $4.85B to $20.82B. Investors analyzing CTSH stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CTSH Dividend Yield and Income Analysis
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) currently pays a dividend yield of 1.8%. At this yield, a $10,000 investment in CTSH stock would generate approximately $$183.00 in annual dividend income. The net margin of 10.5% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
CTSH Momentum and Technical Analysis Profile
COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) has a momentum factor score of 29/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CTSH vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) ranks #260 out of 584 stocks based on the Blank Capital composite score. This places CTSH in the upper half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing CTSH against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CTSH vs S&P 500 (SPY) comparison to assess how COGNIZANT TECHNOLOGY SOLUTIONS CORP stacks up against the broader market across all factor dimensions.
CTSH Next Earnings Date
No upcoming earnings date has been announced for COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CTSH? — Investment Thesis Summary
The quantitative profile for COGNIZANT TECHNOLOGY SOLUTIONS CORP suggests caution. The value score of 74/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 29/100, a headwind for near-term performance. Low volatility (stability score 69/100) reduces downside risk.
In summary, COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH) earns a Reduce rating with a composite score of 45.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CTSH stock.
Related Resources for CTSH Investors
Explore more research and tools: CTSH vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare CTSH head-to-head with peers: CTSH vs IHS, CTSH vs VRSN, CTSH vs ESE.