Cognizant Technology Solutions (CTSH) Stock Price, News & Analysis

Company Overview

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, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, 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 offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.

Key Stats

• Today's Range: $78.48 to $79.17
• 50-Day Range: $66.47 to $81.81
• 52-Week Range: $63.79 to $90.82
• Volume: 991,189 shs
• Average Volume: 3.56 million shs
• Market Capitalization: $39.00 billion
• P/E Ratio: 17.54
• Dividend Yield: 1.57%
• Price Target: $85.00
• Consensus Rating: Hold

Cognizant Technology Solutions Stock Analysis - MarketRank™

Cognizant Technology Solutions scored higher than 96% of companies evaluated by MarketBeat, and ranked 29th out of 652 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.1 / 5
• Analyst Rating: Hold

Consensus Rating

Cognizant Technology Solutions has received a consensus rating of Hold. The company's average rating score is 2.22, and is based on 4 buy ratings, 14 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Cognizant Technology Solutions has been the subject of 11 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 7.43%

Earnings Growth

Earnings for Cognizant Technology Solutions are expected to grow by 7.43% in the coming year, from $4.98 to $5.35 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Cognizant Technology Solutions is 17.46, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 24.77.

Price to Earnings Ratio vs. Sector

The P/E ratio of Cognizant Technology Solutions is 17.46, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 44.19.

Price to Earnings Growth Ratio

Cognizant Technology Solutions has a PEG Ratio of 2.11. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Cognizant Technology Solutions has a P/B Ratio of 2.70. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.12% of the float of Cognizant Technology Solutions has been sold short.

Short Interest Ratio / Days to Cover

Cognizant Technology Solutions has a short interest ratio ("days to cover") of 3.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Cognizant Technology Solutions has recently decreased by 13.01%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

Cognizant Technology Solutions pays a meaningful dividend of 1.52%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Cognizant Technology Solutions has been increasing its dividend for 6 years.

Dividend Coverage

The dividend payout ratio of Cognizant Technology Solutions is 26.11%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Cognizant Technology Solutions will have a dividend payout ratio of 23.18% next year. This indicates that Cognizant Technology Solutions will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 4.1 / 5
• Environmental Score: -0.75

Percentage of Shares Shorted

3.12% of the float of Cognizant Technology Solutions has been sold short.

Short Interest Ratio / Days to Cover

Cognizant Technology Solutions has a short interest ratio ("days to cover") of 3.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Cognizant Technology Solutions has recently decreased by 13.01%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 4.1 / 5
• News Sentiment: 1.36

News Sentiment

Cognizant Technology Solutions has a news sentiment score of 1.36. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.79 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 27 news articles for Cognizant Technology Solutions this week, compared to 15 articles on an average week.

Search Interest

8 people have searched for CTSH on MarketBeat in the last 30 days. This is an increase of 33% compared to the previous 30 days.

MarketBeat Follows

7 people have added Cognizant Technology Solutions to their MarketBeat watchlist in the last 30 days. This is an increase of 17% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Cognizant Technology Solutions insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.26% of the stock of Cognizant Technology Solutions is held by insiders.

Percentage Held by Institutions

92.44% of the stock of Cognizant Technology Solutions is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

CTSH Stock Analysis - Frequently Asked Questions

How have CTSH shares performed this year?

Cognizant Technology Solutions' stock was trading at $76.90 at the beginning of the year. Since then, CTSH stock has increased by 2.4% and is now trading at $78.75.
View the best growth stocks for 2025 here.

How were Cognizant Technology Solutions' earnings last quarter?

Cognizant Technology Solutions Co. (NASDAQ:CTSH) announced its earnings results on Wednesday, April, 30th. The information technology service provider reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.20 by $0.03. The firm's revenue for the quarter was up 7.5% compared to the same quarter last year.
Read the conference call transcript.

When did Cognizant Technology Solutions' stock split?

Shares of Cognizant Technology Solutions split on the morning of Monday, March 10th 2014. The 2-1 split was announced on Wednesday, February 5th 2014. The newly minted shares were distributed to shareholders after the market closes on Friday, March 7th 2014. An investor that had 100 shares of stock prior to the split would have 200 shares after the split.

How will Cognizant Technology Solutions' stock buyback program work?

Cognizant Technology Solutions' board authorized a share repurchase plan on Tuesday, March 25th 2025, which allows the company to repurchase $2,000,000,000 in shares, according to EventVestor. This means that the company could purchase up to 5.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its shares are undervalued.

Does Cognizant Technology Solutions have any subsidiaries?

The following companies are subsidiaries of Cognizant Technology Solutions: Devbridge, HUNTER Technical Resources, Cognizant Life Sciences Manufacturing, ESG Mobility, Servian, Magenic, Linium LLC, and others.

Who are Cognizant Technology Solutions' major shareholders?

Cognizant Technology Solutions' top institutional shareholders include Vanguard Group Inc. (11.95%), Dodge & Cox (3.69%), Pzena Investment Management LLC (3.45%) and Invesco Ltd. (2.44%). Insiders that own company stock include Michael Patsalos-Fox, Ravi Kumar Singisetti, John Sunshin Kim, Leo S Jr Mackay, Zein Abdalla, Kathryn Diaz, Robert C Walker and Maureen Breakiron-Evans.
View institutional ownership trends.

How do I buy shares of Cognizant Technology Solutions?

Shares of CTSH stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Cognizant Technology Solutions own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Cognizant Technology Solutions investors own include Chevron (CVX), Meta Platforms (META), NVIDIA (NVDA), Humana (HUM), American Water Works (AWK), Verizon Communications (VZ) and Advanced Micro Devices (AMD).

Company Calendar

• Record date for 2/26 Dividend: 2/18/2025
• Ex-Dividend for 2/26 Dividend: 2/18/2025
• Dividend Payable: 2/26/2025
• Last Earnings: 4/30/2025
• Record date for 5/28 Dividend: 5/19/2025
• Ex-Dividend for 5/28 Dividend: 5/19/2025
• Today: 5/23/2025
• Dividend Payable: 5/28/2025
• Next Earnings (Estimated): 7/30/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Custom computer programming services
• Sub-Industry: IT Consulting & Other Services
• Current Symbol: NASDAQ:CTSH
• Previous Symbol: NASDAQ:CTSH
• CIK: 1058290
• Web: www.cognizant.com
• Phone: (201) 801-0233
• Fax: 201-801-0243
• Employees: 355,300
• Year Founded: 1994

Price Target and Rating

• Average Stock Price Target: $85.00
• High Stock Price Target: $98.00
• Low Stock Price Target: $75.00
• Potential Upside/Downside: +6.4%
• Consensus Rating: Hold
• Rating Score (0-4): 2.22
• Research Coverage: 18 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $4.75
• Trailing P/E Ratio: 17.72
• Forward P/E Ratio: 16.04
• P/E Growth: 2.11
• Net Income: $2.24 billion
• Net Margins: 11.35%
• Pretax Margin: 14.89%
• Return on Equity: 16.78%
• Return on Assets: 12.24%

Debt

• Debt-to-Equity Ratio: 0.06
• Current Ratio: 2.09
• Quick Ratio: 2.09

Sales & Book Value

• Annual Sales: $20.09 billion
• Price / Sales: 1.96
• Cash Flow: $5.35 per share
• Price / Cash Flow: 14.94
• Book Value: $29.13 per share
• Price / Book: 2.74

Miscellaneous

• Outstanding Shares: 492,942,000
• Free Float: 494,535,000
• Market Cap: $39.39 billion
• Optionable: Optionable
• Beta: 0.93