CTSH Price & AI Analysis — Cognizant Technology Solutions Corp Class A | HeyTheo
Market Cap
18.518B
Large Cap
P/E Ratio
8.49
Fwd: 7.26
EPS (TTM)
$4.61
Div. Yield
3.09%
Theo Outlook
Cognizant Technology Solutions (CTSH) presents a compelling bullish thesis with a trailing P/E of 8.48, forward P/E of 6.86, and market capitalization of $18.93 billion. The company delivered TTM revenue of $21.41 billion and EPS of $4.72, supported by 5.8% year-over-year quarterly revenue growth and 3.6% quarterly earnings growth, indicating resilient demand in IT services amid a low valuation relative to peers.
Key catalysts include sustained earnings momentum from digital transformation projects, expansion in healthcare and financial services verticals, and a robust 3.27% dividend yield with the next ex-dividend date on May 18, 2026. Analyst consensus targets $69.38 per share with 13 buy ratings, signaling potential upside from operational efficiencies and new contract wins in cloud and AI consulting.
Risks encompass competitive pressures from larger IT firms, potential regulatory scrutiny on outsourcing practices, and macro headwinds from client budget cuts in a slowing economy. Mitigations include CTSH's diversified client base, strong 14.9% return on equity, and focus on high-margin digital services to buffer cyclical downturns.
Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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Cognizant is an American multinational technology company that provides business consulting, information technology and outsourcing services. It is headquartered in Teaneck, New Jersey, United States.
Fundamental Snapshot
Revenue
21.406B
EBITDA
3.891B
Gross Profit
7.174B
Operating Margin
15.6%
Profit Margin
10.4%
ROE
14.9%
Book Value
$31.79
Beta
0.81
52-Wk High
$85.98
52-Wk Low
$38.97
Avg Volume
13.5047M
PEG Ratio
0.678
Frequently Asked Questions
What is Cognizant Technology Solutions' business model?
CTSH operates as a global IT services provider offering consulting, digital transformation, and outsourcing solutions. It generates revenue primarily through long-term contracts in technology, healthcare, and financial services, with TTM revenue of $21.41 billion.
What are CTSH's main revenue sources?
Revenue comes from IT services, digital operations, and consulting across verticals like healthcare and financial services. TTM revenue reached $21.41 billion with 5.8% quarterly growth, supported by a 15.6% operating margin.
What competitive advantages does CTSH have?
CTSH benefits from deep domain expertise, a global delivery model, and strong client relationships, reflected in its 14.9% return on equity and 10.4% profit margin. Its low forward P/E of 6.86 highlights undervaluation versus peers.
What are the key risks for CTSH investors?
Key risks include competition, client spending cuts, and regulatory issues in outsourcing. The stock trades at a trailing P/E of 8.48 with a beta of 0.81, offering some downside protection, while a 3.27% dividend yield provides income support.
What is the growth outlook for CTSH?
Analysts project upside to a $69.38 target price with 13 buy ratings. Growth is driven by digital services expansion, 3.6% quarterly EPS growth, and the next earnings period following the March 31, 2026 quarter, supported by 5.8% revenue growth.
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CTSHNASDAQ— Cognizant Technology Solutions Corp Class A Price & Analysis
