Cognizant (CTSH) Stock Analysis

November 11, 2026

This is a peer-relative look at Cognizant (CTSH): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Cognizant (CTSH)
Profile Item	CTSH
Name	Cognizant Technology Solutions Corp. Class A Common Stock
Country/Region	United States
GICS Sector	Information Technology
GICS Industry Group	Software & Services
GICS Industry	IT Services
GICS Sub-Industry	IT Consulting & Other Services
Market Capitalization	28.93 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	June 19, 1998
Security Type	Common Stock

Price Performance

Cumulative Growth

CTSH

GSPC

Cognizant (CTSH) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cognizant (CTSH) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cognizant (CTSH) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
Total Return (1Y)	-10.80%	-3.00%
Total Return (3Y, Annualized)	1.40%	8.28%
Total Return (5Y, Annualized)	-2.88%	-7.91%

Risk Profile

Drawdown History

CTSH

GSPC

Cognizant (CTSH) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cognizant (CTSH) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
Volatility (1Y, Annualized)	43.62%	61.69%
Beta (5Y)	0.83	1.06
Max Drawdown (5Y)	-56.08%	-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. CTSH is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
Sharpe Ratio (1Y)	-0.35	-0.13
Sortino Ratio (1Y)	-0.50	-0.19

Profitability

ROE (TTM)

Cognizant (CTSH) posts ROE of 17.37%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

CTSH

Software & Services industry group

17.37%

Group distribution

Max: 53.85%
Q3: 17.90%
CTSH: 17.37%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Largest peers

ORCL: 41.19%
PLTR: 40.91%
IBM: 34.77%
MSFT: 34.22%
SAP: 18.18%
CTSH: 17.37%
PANW: 1.74%

Where Cognizant (CTSH) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Cognizant (CTSH) keeps 11.75% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

CTSH

Software & Services industry group

11.75%

Group distribution

Max: 41.17%
Q3: 15.28%
CTSH: 11.75%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Largest peers

PLTR: 50.34%
MSFT: 41.17%
ORCL: 26.36%
SAP: 20.41%
IBM: 15.99%
CTSH: 11.75%
PANW: 2.67%

Where Cognizant (CTSH) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Cognizant (CTSH) turns 16.30% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

CTSH

Software & Services industry group

16.30%

Group distribution

Max: 46.89%
Q3: 17.64%
CTSH: 16.30%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Largest peers

MSFT: 49.76%
PLTR: 46.89%
ORCL: 35.63%
SAP: 29.50%
IBM: 16.97%
CTSH: 16.30%
PANW: 5.40%

Where Cognizant (CTSH) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
ROE (TTM)	17.37%	6.59%
ROA (TTM)	10.78%	2.45%
Net Margin (TTM)	11.75%	4.63%
Operating Margin (TTM)	16.30%	8.73%
Gross Margin (TTM)	33.42%	70.07%

Growth

Revenue Growth

Cognizant (CTSH) grew revenue 6.95%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

Cognizant (CTSH): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

Cognizant (CTSH) grew earnings per share 1.11%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Cognizant (CTSH): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
Revenue Growth (YoY)	6.95%	14.22%
Revenue Growth (3Y CAGR)	2.80%	13.52%
EPS Growth (YoY)	1.11%	7.85%
EPS Growth (3Y CAGR)	1.12%	18.19%

Financial Strength

Current Ratio (MRQ)

Cognizant (CTSH) has current ratio of 2.22, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

CTSH

Software & Services industry group

2.22

Group distribution

Max: 5.11
Q3: 2.77
CTSH: 2.22
Median: 1.67
Q1: 1.01
Min: 0.03

Largest peers

PLTR: 7.10
CTSH: 2.22
MSFT: 1.23
ORCL: 1.17
SAP: 1.16
PANW: 0.87
IBM: 0.86

Where Cognizant (CTSH) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Cognizant (CTSH) has debt-to-equity ratio of 0.14, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

CTSH

Software & Services industry group

0.14

Group distribution

Max: 2.52
Q3: 1.13
Median: 0.40
CTSH: 0.14
Q1: 0.07
Min: 0.00

Largest peers

ORCL: 2.52
IBM: 1.85
MSFT: 0.28
SAP: 0.23
CTSH: 0.14
PANW: 0.09
PLTR: 0.02

Where Cognizant (CTSH) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
Current Ratio (MRQ)	2.22	1.67
Debt / Equity (MRQ)	0.14	0.40
Net Debt / EBITDA	0.14	0.17

Dividends

Dividend Yield (TTM)

Cognizant (CTSH) has dividend yield of 1.98%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

CTSH

Software & Services industry group

1.98%

Group distribution

CTSH: 1.98%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

IBM: 2.73%
CTSH: 1.98%
ORCL: 1.74%
SAP: 1.03%
MSFT: 0.69%
PLTR: 0.00%
PANW: 0.00%

Where Cognizant (CTSH) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Cognizant (CTSH) has payout ratio of 23.72%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

CTSH

Software & Services industry group

23.72%

Group distribution

CTSH: 23.72%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

IBM: 57.51%
SAP: 36.45%
ORCL: 31.35%
CTSH: 23.72%
MSFT: 19.00%
PLTR: 0.00%
PANW: 0.00%

Where Cognizant (CTSH) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
Dividend Yield (TTM)	1.98%	0.00%
Dividend Payout Ratio (TTM)	23.72%	0.00%

Valuation

P/E Ratio (TTM)

Cognizant (CTSH) trades at P/E ratio of 11.81, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

CTSH

Software & Services industry group

11.81

Group distribution

Max: 112.94
Q3: 60.32
Median: 32.91
Q1: 18.77
CTSH: 11.81
Min: 6.69

Largest peers

PANW: 784.60
PLTR: 112.94
SAP: 29.07
MSFT: 27.69
IBM: 20.90
ORCL: 18.20
CTSH: 11.81

Where Cognizant (CTSH) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Cognizant (CTSH) trades at 1.32 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

CTSH

Software & Services industry group

1.32

Group distribution

Max: 17.91
Q3: 8.78
Median: 4.25
Q1: 2.23
CTSH: 1.32
Min: 0.02

Largest peers

PLTR: 53.02
PANW: 22.37
MSFT: 11.37
SAP: 6.84
ORCL: 5.04
IBM: 3.31
CTSH: 1.32

Where Cognizant (CTSH) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Cognizant (CTSH) trades at 1.97 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

CTSH

Software & Services industry group

1.97

Group distribution

Max: 16.63
Q3: 8.50
Median: 4.30
CTSH: 1.97
Q1: 1.92
Min: -3.90

Largest peers

SAP: 73.25
PLTR: 34.41
PANW: 9.30
MSFT: 8.38
IBM: 6.52
ORCL: 5.68
CTSH: 1.97

Where Cognizant (CTSH) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Cognizant (CTSH) metric values compared with Software & Services industry-group medians
Metric	Current stock: CTSH	Industry group median
P/E Ratio (TTM)	11.81	32.91
P/S Ratio (TTM)	1.32	4.25
P/B Ratio (MRQ)	1.97	4.30
Free Cash Flow Yield (TTM)	7.19%	3.98%