Cognizant
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…
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. It provides services, such as artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. It develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies; and businesses providing logistic, energy, and utility services. It has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. It holds a strategic partnership with Travelport to build intelligent travel retail for the AI era. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.Priced within the modelled range
Other models: USD 57.07–99.44 (median 69.19). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 5.03% growth, 3.25% terminal growth, and 11.5% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 5.03%, discount rate 11.50%, terminal growth 3.25% (sector defaults). See a worked example.
Blended growth assumption: 5.0% (sector default 8.5%, own revenue history 3.3%, analyst revenue consensus 4.1%).
5-year outlook: relative outlook of about 10.1% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 4.1% a year; the growth assumption used is 5.0%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 74.29 (+11.6%)
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EPS-based Gordon proxy
— USD 57.07 (-14.2%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 74.29 (+11.6%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 69.19 (+4.0%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 99.44 (+49.4%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 74.08 (+11.3%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 207.31 (+211.6%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear USD 57.42 | -15.9% |
| Base USD 74.29 | 10.4% |
| Bull USD 102.38 | 35.0% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 66.54 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.3%, discount 11.5%).
Compare: the market implies 2.3% a year, this model assumes 5.0%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 9.5% | 10.5% | 11.5% | 12.5% | 13.5% |
|---|---|---|---|---|---|
| 1.0% | 82.37 | 71.51 | 63.27 | 56.82 | 51.62 |
| 3.0% | 89.61 | 77.65 | 68.58 | 61.48 | 55.76 |
| 5.0% | 97.41 | 84.25 | 74.29 | 66.48 | 60.20 |
| 7.0% | 105.78 | 91.34 | 80.41 | 71.85 | 64.96 |
| 9.0% | 114.77 | 98.95 | 86.98 | 77.60 | 70.06 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 82 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +3.0% a year | 12 / 20 |
| Balance sheet | net debt 0.0x EBITDA | 20 / 20 |
| Margins | EBITDA margin 18% | 10 / 20 |
Peers in Information Technology
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| CTSH (this company) | USD 66.54 | 6.5% | 11.6 | 2.0 | 1.9% | 82 |
| SMCI Supermicro | USD 27.08 | 50.8% | 8.5 | 1.3 | – | 68 |
| SNDK Sandisk | USD 806.43 | 44.1% | 6.4 | 6.8 | – | 76 |
| ADBE Adobe Inc. | USD 246.44 | 42.5% | 13.4 | 8.3 | – | 100 |
| IT Gartner | USD 198.07 | 35.7% | 13.3 | – | – | 92 |
| INTU Intuit | USD 354.84 | 31.9% | 21.1 | 5.1 | 1.4% | 100 |
| HPQ HP Inc. | USD 29.44 | 31.6% | 11.1 | – | 4.0% | 64 |
| GIB-A.TO CGI Inc. | CAD 115.51 | 26.9% | 13.9 | 2.4 | 0.6% | 90 |
| FSLR First Solar | USD 195.76 | 25.9% | 11.3 | 1.9 | – | 84 |
| Peer median | 12.3 | 3.7 | ||||
Dividends
Paid in the last 12 months: USD 1.30 per share · yield 1.95% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.990 |
| 2025 | 1.240 |
| 2024 | 1.200 |
| 2023 | 1.160 |
| 2022 | 1.080 |
| 2021 | 0.960 |
Annual financial statement
Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 31 Dec 2025
| Revenue | USD 21,108,000,000 |
|---|---|
| EBITDA | USD 3,939,000,000 |
| EBIT | USD 3,389,000,000 |
| Net income | USD 2,230,000,000 |
| Free cash flow | USD 2,595,000,000 |
| Capital expenditures | USD -288,000,000 |
| Debt | USD 543,000,000 |
| Cash | USD 1,901,000,000 |
| Working capital | USD 4,159,000,000 |
| Shares outstanding | 489,000,000 |
| Reported dividends per share | USD 1.2400 |