Cognizant Technology Solutions Corp. - Ordinary Shares - Class A
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+ FollowMarket Cap$29.44B
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Earnings Call Q3 2026
October 29, 2026 - AI Summary
Q3 performance (good): solid growth + strong profitability despite tougher demand
- Revenue +$5.7B, up 4.8% YoY in constant currency.
- Adjusted operating margin: 16.3%, +30 bps YoY, and management said it’s the highest in ~4 years.
- Adjusted EPS: $1.49, +7% YoY (benefits from margin expansion and lower share count).
- Cash flow/capital returns: Free cash flow $925M in Q3; $1.6B YTD. Repurchased 4.9M shares (~$250M) in the quarter; $2.3B returned YTD (repurchases + dividends). Targeting ~$2.6B for full year.
Bookings/backlog dynamics (surprising/important): bookings quality improved
- Trailing-12-month bookings +4%, book-to-bill 1.3x.
- Management highlighted a mix shift toward new business: new vs. expanded bookings up 10+ percentage points YoY to 60%.
- They also noted renewal portion is down (rebaselining coming off productivity) while new bookings are up, implying bookings should convert to revenue faster than in prior quarters (helpful for near-term confidence).
AI Builder strategy progress + investment capacity build-out (opportunity): client demand shifting toward production/enterprise scale
- Claim: by end of Q3, >50% of software development was AI-assisted; 8,500+ AI engagements.
- Scale building:
- 45,000 associates earned 95,000+ certifications across frontier AI platforms; 65,000+ in progress.
- Expanded Google Cloud partnership via Gemini Frontier Capability Group with 18,000+ associates; 55,000+ associates completed “Build with Gemini.”
- Strategy pillars: reimagine work, enterprise-grade governed AI engineering, help clients absorb AI (Skillspring ~315,000 associates users), govern/compound institutional intelligence via Cognizant AI Nexus.
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$93.58
42.2% upside
Current Fair Value
42.2% upsideUndervalued by 42.2% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $29.44 Billion |
|---|---|
| Enterprise Value | $30.98 Billion |
| Annual dividend | $1.30 |
| Dividend yield | 2.00% |
| Earnings per Share | $4.56 |
| Beta | 0.85 |
| Outstanding Shares | 450,000,000 |
Return
| Return on Equity | 17.79% |
|---|---|
| Return on Assets | 12.36% |
| Return on Invested Capital | 20.00% |
Valuation & Multiples
| P/E Ratio | 11.86 |
|---|---|
| PEG | 9.21 |
| Price to Sales | 1.37 |
| Price to Book Ratio | 2.06 |
| Enterprise Value to Revenue | 1.42 |
| Enterprise Value to EBIT | 8.92 |
| Enterprise Value to Net Income | 12 |
| Total Debt to Enterprise | 0.08 |
| Debt to Equity | 0.18 |
Revenue Sources
No data
Last Earnings Call
Report Date
November 4, 2026
EPS Estimate
$1.46
Consensus analyst estimateRevenue Estimate
$5.64 B
Consensus analyst estimateNext Earnings Call
Expected Date
February 3, 2027
EPS Estimate
$1.49
Consensus analyst estimateRevenue Estimate
$5.55 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.00, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.0000▼ 120.68% |
|---|---|
| Total Calls | -▼ 100.00% |
| Total Puts | 42,500▼ 99.11% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 10.61%▼ 98.65% |
|---|---|
| Total Invested | $2.83B▼ 85.68% |
| Investors Holding | 314▼ 647.00% |
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...