Cognizant Technology Solutions Corp. - Ordinary Shares - Class A

Cognizant Technology Solutions Corp. - Ordinary Shares - Class A

CTSH

Market Cap$39.03B
Close$

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 A16.61.53%23%20.1

Earnings Call Q1 2025

April 30, 2025 - AI Summary

Strong Q1 Performance: Cognizant reported revenue of $5.1 billion for Q1 2025, a year-over-year growth of 8.2% in constant currency driven by acquisitions like Belcan and strong organic growth, primarily in Health Sciences (up 11%) and Financial Services (up 6.5%). Adjusted operating margin improved by 40 basis points to 15.5%, and adjusted EPS increased 10% year-over-year.
Forward-Looking Guidance: For Q2 2025, Cognizant anticipates revenue growth of 5% to 6.5% year-over-year. For the full year 2025, revenue is expected to grow between 3.5% to 6% in constant currency, benefiting from a relatively strong backlog and a projected inorganic uplift of over 250 basis points due to acquisitions.
Challenges from Economic Conditions: There was an observed slowdown in client decision-making and discretionary spending starting in April, particularly within the health sciences and products and resources segments. This potentially indicates increased caution among clients amid a changing macroeconomic environment, though the impact was described as isolated so far.

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$103.26

Current Fair Value

27.1% upside

Undervalued by 27.1% based on the discounted cash flow analysis.

Share Statistics

Market cap$39.03 Billion
Enterprise Value$38.17 Billion
Dividend Yield$1.21 (1.52835670077049%)
Earnings per Share$4.52
Beta0.93
Outstanding Shares494,000,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio16.59
PEG77.43
Price to Sales2.03
Price to Book Ratio2.71
Enterprise Value to Revenue1.9
Enterprise Value to EBIT16.63
Enterprise Value to Net Income11
Total Debt to Enterprise0.03
Debt to Equity0.08

Revenue Sources

No data

Insider Trades

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...