Cognizant (CTSH) stock

Information Technology · IT Consulting & Other Services

$70.54
-$3.18 -4.31%
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Cognizant (CTSH) is an IT Consulting & Other Services company in the Information Technology sector, headquartered in Teaneck, New Jersey. As of October 23, 2026, CTSH closed at $70.54, a market capitalization of $31.77 billion, the 313th largest company in the S&P 500. Over the last twelve months it generated $21.64 billion in revenue (+4% year over year) and $2.60 billion in free cash flow. The stock trades at 15.2x trailing earnings and 11.1x forward earnings.

  • 1-year total return: +6.0% (dividends reinvested)
  • 5-year return: -0.6% a year
  • 52-week range: $37.08 – $87.03
  • Gross margin 33.4%, operating margin 17.5%
  • Dividend yield: 1.87%, 6 straight years of increases
  • FI Handbook report card: B- across 10 metrics
  • 54th largest of 75 Information Technology stocks in the S&P 500

CTSH price chart

1Y price change: +3.7% (price only; total returns below include dividends)

$40.00
$60.00
$80.00
Nov2026MarMayJulSep
CTSH total returns
Total return1MYTD1Y3Y5Y10YMAX
CTSH+19.3%-13.5%+6.0%+4.6%-0.6%+5.0%+23.4%

Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1998.

CTSH key statistics

Market cap
$31.8B
#313 in S&P 500
P/E (TTM)
15.2x
Forward P/E
11.1x
EPS (TTM)
$4.65
Revenue (TTM)
$21.6B
+5%
Free cash flow
$2.6B
Gross margin
33.4%
Operating margin
17.5%
Return on equity
14.9%
Dividend yield
1.87%
52-week range
$37.08 – $87.03
Beta
0.85
Price / sales
1.5x
EV / EBITDA
8.1x
Debt / equity
0.14x
Employees
356,700

CTSH report card

B-

Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.

  • Revenue growth4.5%D
  • Gross margin33.4%C
  • Operating margin17.5%C
  • FCF margin12.0%C
  • Return on equity14.9%C
  • Net debt / EBITDA0.3xB
  • Forward P/E11.1xA
  • PEG ratio0.9xA
  • Shareholder yield6.2%A
  • Share count change / yr-2.0%A

Cognizant Technology Solutions financials

Revenue went from $13.5B in fiscal 2016 to $21.1B in fiscal 2025, growing 5.1% a year.

FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
Cognizant Technology Solutions annual financial results
Fiscal year2016201720182019202020212022202320242025
Revenue$13.5B$14.8B$16.1B$16.8B$16.7B$18.5B$19.4B$19.4B$19.7B$21.1B
Operating income$2.3B$2.5B$2.8B$2.5B$2.1B$2.8B$3.0B$2.7B$2.9B$3.4B
Net income$1.6B$1.5B$2.1B$1.8B$1.4B$2.1B$2.3B$2.1B$2.2B$2.2B
EPS (diluted)$2.55$2.53$3.60$3.29$2.57$4.05$4.41$4.21$4.51$4.56
Free cash flow$1.3B$2.1B$2.2B$2.1B$2.9B$2.2B$2.2B$2.0B$1.8B$2.6B
Buybacks$512.0M$1.9B$1.3B$2.2B$1.6B$771.0M$1.4B$1.1B$605.0M$1.4B
Dividends paid$0$265.0M$468.0M$453.0M$480.0M$509.0M$564.0M$591.0M$600.0M$610.0M
Diluted shares610.0M595.0M584.0M560.0M541.0M528.0M519.0M505.0M497.0M489.0M

Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.

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What's priced into CTSH?

A reverse DCF asks what growth the current price requires. With an enterprise value of $32.8B and $2.6B of trailing free cash flow, Cognizant Technology Solutions needs to grow free cash flow about -0.7% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew -2.2% a year over the last five years.

P/E ratio history

Current 15.5x vs. median 23.3x (10th–90th percentile 15.5x–30.9x).

10x
20x
30x
20122014201620182020202220242026

A model, not a forecast or advice. Small changes in assumptions move the answer a lot.

CTSH dividend

Dividend yield
1.87%
Annual dividend
$1.32
Years of increases
6
5-yr dividend growth
7.1%
per year
Payout ratio
28%
Payments per year
4
201720182019202020212022202320242025

Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.

CTSH analyst price targets

25 analysts' average 12-month target is $67.10 (-5% vs. $70.54). Targets range from $47.00 to $93.00. 45% rate it a buy.

CTSH earnings

Next report: October 29, 2026. Last quarter's revenue was $5.5B (+4% year over year).

Report dateEPS estimateEPS actualSurprise
Jul 29, 2026$1.38$1.37-0.7%
Apr 29, 2026$1.33$1.40+5.0%
Feb 4, 2026$1.32$1.35+2.0%
Oct 29, 2025$1.30$1.39+6.7%
Jul 30, 2025$1.26$1.31+4.0%
Apr 30, 2025$1.20$1.23+2.5%
Feb 5, 2025$1.13$1.21+7.5%
Oct 30, 2024$1.15$1.25+9.0%

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CTSH news

CTSH stock FAQ

What is CTSH's market cap?

Cognizant's market capitalization is $31.77 billion as of October 23, 2026, ranking 313th in the S&P 500.

What is CTSH's P/E ratio?

CTSH trades at a trailing price-to-earnings ratio of 15.2x and a forward P/E of 11.1x. Its median P/E over the period we track is 23.3x.

Does CTSH pay a dividend?

Yes. Cognizant pays $1.32 per share a year, a 1.87% yield. It has raised its dividend 6 years in a row. Dividends grew 7.1% a year over the last five years.

How much has CTSH stock returned?

Including reinvested dividends, CTSH returned +6.0% over one year, -0.6% a year over five years, +5.0% a year over ten years through October 23, 2026.

Is CTSH stock overvalued?

At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Cognizant must grow free cash flow about -1% a year for the next decade. Its free cash flow fell 2% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.

What is the CTSH price target?

25 analysts cover CTSH with an average 12-month price target of $67.10, -5% from the current price. 45% of them rate it a buy.

When does CTSH report earnings?

Cognizant is expected to report earnings on October 29, 2026.

How many employees does Cognizant have?

Cognizant has about 356,700 full-time employees, or $60,673 of revenue per employee.

Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology