| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 12.9x | 17.8x | Top tier | |
Growth | 42 | 5.6% | 7.1% | Around median | |
Quality | 71 | 13.0% | 4.5% | Top tier | |
Safety | 92 | 0.3x | 2.6x | Top tier | |
Capital Return | 43 | 2.07% | 2.12% | Around median | |
Momentum | 31 | -18.1% | 2.9% | Bottom tier | |
Sentiment | 85 | 19 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cognizant Technology Solutions Corporation operates in information technology services, digital transformation, and managed operations, generating revenue from software engineering, data, cloud, cybersecurity, business operations, and specialized platforms. Its contracting model is split roughly evenly between time-and-materials work and fixed-price contracts, while the company seeks to increase outcome- and transaction-based pricing. The TriZetto healthcare platform is an important example of this direction; its annual revenue exceeds $1.1 billion, and during the first half of fiscal year 2026, it grew faster than the company as a whole and at significantly higher margins than traditional services.
In Q2 of fiscal year 2026, revenue reached $5.5 billion, growing 4.1% year over year in constant currency, with North America and the financial sector leading this performance as financial services grew by approximately 12% for the second consecutive quarter above 10%. Adjusted operating margin was 16%, up 40 basis points year over year, and adjusted earnings per share reached $1.37, up 5%, while free cash flow totaled $459 million. The results included $84 million in Project LEAP costs and a nonrecurring benefit of $81 million related to the partial reversal of a defined contribution obligation in India.
Business operations services supported growth, and demand remained strong for data, cybersecurity, and technology customer services, while Health Sciences was stable and discretionary spending there remained subject to strict scrutiny. Products and Resources was stable, and demand from communications and media clients remained soft, while momentum emerged in manufacturing, logistics, energy, and utilities. For fiscal year 2025, the company reported revenue of $21.1 billion and net income of $2.2 billion, while revenue for the last twelve months through 2026 reached approximately $21.4 billion and net income was $2.2 billion.
The average analyst price target is $64.77 with a neutral consensus, and the target range is between $51 and $82; the average is below the 52-week range high of $87.03, and the highest target is also below that high. The 52-week range extends from $37.08 to $87.03, and no price-to-earnings ratio is available in the provided data, so the stock's valuation is based on the breadth of the target range and balancing the increase in earnings-per-share guidance to $5.70–$5.82 against pressure on discretionary spending and the dependence of part of expected growth on acquisitions.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue reached $5.5 billion and grew 4.1% year over year in constant currency, with North America and the financial sector leading growth. Financial services increased by approximately 12% across banking, capital markets, and insurance, marking the second consecutive quarterly reading above 10%. Adjusted operating margin was 16%, up 40 basis points, and adjusted earnings per share increased 5% to $1.37.
On July 29, 2026, the company disclosed more than 8,000 artificial intelligence engagements, and more than 40% of its software development became AI-assisted. It launched the Cognizant AI Delivery Operating System and connected it with the Engineering Harness, Business Operations Harness, and Intelligence Spine platforms. In customer applications, it reduced manual work by 60% at a mid-sized healthcare payer organization, and a fraud dispute pilot at a large North American bank demonstrated the potential to reduce manual effort by more than 50%.
TriZetto generates more than $1.1 billion in annual revenue, and during the first half of fiscal year 2026, it grew faster than the company as a whole and at significantly higher margins. Cognizant uses the platform to expand healthcare operations, including an automated claims review solution that relies on large language models with human verification when needed. Astreya, whose acquisition was completed in Q2 of fiscal year 2026, adds expertise in data centers, networking, the digital workplace, and AI-enabled managed operations, and continues working with Google in its corporate and engineering environments.
Automated analysis for informational purposes only — not investment advice.
The company expects Q3 fiscal year 2026 revenue growth of between 3.8% and 5.3% in constant currency, including approximately 200 basis points from completed acquisitions. It expects fiscal year 2026 revenue growth of between 4% and 5.5%, including 150 basis points of inorganic growth, while adjusted operating margin remains between 16% and 16.2%. Adjusted earnings-per-share guidance was raised to $5.70–$5.82, while free cash flow conversion guidance remained at 90%–100% of net income.
Last-twelve-month bookings reached approximately $29 billion, with 5% growth and a book-to-bill ratio of 1.3. The company signed seven deals with total contract value exceeding $100 million each, including three new clients, while new and expansion bookings grew at a mid-teens rate during the first half of fiscal year 2026. In contrast, annual contract value declined modestly because of longer deal durations, and achieving the guidance depends on deals in transition moving to billable volumes during Q3 and Q4.
Economic caution kept discretionary spending under pressure, particularly in Health Sciences, while demand from communications and media clients remained soft in Q2 of fiscal year 2026. Annual growth guidance includes 150 basis points from acquisitions, making organic growth weaker than the total figure, while gross margin remained slightly below its year-ago level. Project LEAP adds implementation costs after recording $84 million in Q2, while the neutral analyst consensus and the wide range of targets from $51 to $82 show meaningful disagreement about the valuation trajectory.
