Cognizant Technology Solutions Corp. - Ordinary Shares - Class A

Cognizant Technology Solutions Corp. - Ordinary Shares - Class A

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Market Cap$26.42B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Cognizant Technology Solutions Corp. - Ordinary Shares - Class ACognizant Technology Solutions Corp. - Ordinary Shares - Class A11.92.3%15%1.20.1

Earnings Call Q1 2026

April 29, 2026 - AI Summary

Revenue Growth and Performance: Cognizant reported Q1 2026 revenue of $5.4 billion, reflecting a year-over-year growth of 3.9% in constant currency. This growth was primarily driven by strong demand in the Financial Services segment, which increased over 10% year-over-year. Bookings growth was particularly strong, up 21% year-over-year, with seven large deals signed each valued over $100 million and one mega deal exceeding $500 million.
Adjusted Operating Margin and EPS Growth: The company's adjusted operating margin expanded for the fifth consecutive quarter, reaching 15.6%, an increase of 10 basis points year-over-year. Adjusted EPS stood at $1.40, reflecting a 14% growth YOY, indicating effective operational efficiency and a strong earnings performance despite a complex macroeconomic environment.
Acquisition Strategy: Cognizant announced an agreement to acquire Atria, a managed IT services provider specializing in AI infrastructure. This acquisition is expected to enhance Cognizant's capabilities in AI and infrastructure management, aligning with its strategy to become a leading AI builder and driving further growth in integrated offerings.

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$73.00

Target Price by Analysts

36.4% upsideCognizant Technology Solutions Target Price DetailsTarget Price
$110.11

Current Fair Value

105.8% upside

Undervalued by 105.8% based on the discounted cash flow analysis.

Share Statistics

Market cap$26.42 Billion
Enterprise Value$26.59 Billion
Dividend Yield$1.28 (2.30%)
Earnings per Share$4.56
Beta0.8
Outstanding Shares477,000,000

Return

Return on Equity14.79%ROE
Return on Assets10.87%
Return on Invested Capital17.89%

Valuation & Multiples

P/E Ratio11.93P/E Ratio
PEG-7910.53PEG
Price to Sales1.22Price to Sales
Price to Book Ratio1.73Price to Book Ratio
Enterprise Value to Revenue1.24
Enterprise Value to EBIT8.75
Enterprise Value to Net Income11
Total Debt to Enterprise0.06
Debt to Equity0.11Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 6, 2026
EPS Estimate
$1.33
Average shareholder expectation
Revenue Estimate
$5.41 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 29, 2026
EPS Estimate
$1.38
Average shareholder expectation
Revenue Estimate
$5.50 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.0609 223.06%
Total Calls1,331,702 18.58%
Total Puts1,412,747 73.76%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %98.36% 0.61%
Total Invested$29.03B 27.90%
Investors Holding1,011 91.00%

ESG Score

No data

About Cognizant Technology Solutions Corp.

289,500 employees
CEO: Francisco D'Souza

Cognizant is one of the world's leading professional services companies, transforming clients' business, operating, and technology models for the digital era. Its unique industry-based, consultative approach helps clients envision, build...

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the official revenue estimates and technical expertise for all tax legislation. Its analysis directly influences the development of tax policies that impact corporate structures, capital investment, and the overall tax burden on Cognizant, providing critical insight into future fiscal policy.

Finance

As the primary committee controlling taxation and trade policy, its decisions directly affect Cognizant's corporate tax burden, profitability, and global operating environment, including cross-border service delivery and client engagement.

Appropriations

This committee directly allocates discretionary federal spending across all government agencies. Its decisions on funding for defense programs, scientific research, and other government initiatives directly determine the budget available for IT and consulting services, thus directly impacting potential government contracts for Cognizant.

Judiciary

This committee oversees antitrust laws, intellectual property, and mergers & acquisitions. These areas are critically important for a large technology-driven services company like Cognizant, impacting its growth strategy, competitive landscape, and the protection of its proprietary technologies.

Banking, Housing, and Urban Affairs

This committee regulates the entire financial system, including banks, the SEC, and emerging areas like cryptocurrency. As Cognizant provides significant services to the financial sector (digital transformation, data processing), regulations from this committee directly impact its major client base and the demand for its specialized services.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, data privacy, and the telecommunications sector. Regulations concerning 'Big Tech,' data privacy laws, and telecommunications infrastructure directly impact Cognizant's digital transformation, data processing, and IT services offerings.

Homeland Security and Governmental Affairs

This committee directly regulates federal contracting and procurement, which are significant revenue streams for a professional services company like Cognizant. Its oversight on the consulting sector and emerging AI risks also directly impacts Cognizant's core business.