CTSH vs. NOW: Cognizant vs. ServiceNow Stock Comparison

November 11, 2026

How do Cognizant (CTSH) and ServiceNow (NOW) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Cognizant (CTSH) and ServiceNow (NOW) both fall under the Software & Services industry group, but CTSH is classified in IT Services while NOW is classified in Software.

Company profile comparison for Cognizant (CTSH) and ServiceNow (NOW)
Profile Item	CTSH	NOW
Name	Cognizant Technology Solutions Corp. Class A Common Stock	ServiceNow Inc.
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	IT Services	Software
GICS Sub-Industry	IT Consulting & Other Services	Systems Software
Market Capitalization	28.93 billion USD	105.84 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	June 19, 1998	June 29, 2012
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CTSH

NOW

GSPC

Cognizant (CTSH) vs. ServiceNow (NOW), with S&P 500 (GSPC) for reference: 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 ServiceNow (NOW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cognizant (CTSH) and ServiceNow (NOW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
Total Return (1Y)	-10.80%	-39.72%
Total Return (3Y, Annualized)	1.40%	-5.71%
Total Return (5Y, Annualized)	-2.88%	-5.55%

Risk Profile

Drawdown History

CTSH

NOW

GSPC

Cognizant (CTSH) vs. ServiceNow (NOW), with S&P 500 (GSPC) for reference: 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 ServiceNow (NOW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
Volatility (1Y, Annualized)	43.62%	64.49%
Beta (5Y)	0.83	0.98
Max Drawdown (5Y)	-56.08%	-64.54%
Avg. Volume (3M)	6.65M	15.74M

Risk-Adjusted Performance

Risk-Return Positioning

CTSH and NOW are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
Sharpe Ratio (1Y)	-0.35	-0.68
Sortino Ratio (1Y)	-0.50	-0.89

Profitability

ROE (TTM)

Both Cognizant (CTSH) at 17.37% and ServiceNow (NOW) at 11.85% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

CTSH

Software & Services industry group

17.37%

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

NOW

Software & Services industry group

11.85%

Max: 53.85%
Q3: 17.90%
NOW: 11.85%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both Cognizant (CTSH) at 11.75% and ServiceNow (NOW) at 9.36% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

CTSH

Software & Services industry group

11.75%

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

NOW

Software & Services industry group

9.36%

Max: 41.17%
Q3: 15.28%
NOW: 9.36%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Cognizant (CTSH) at 16.30% and ServiceNow (NOW) at 17.39% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

CTSH

Software & Services industry group

16.30%

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

NOW

Software & Services industry group

17.39%

Max: 46.89%
Q3: 17.64%
NOW: 17.39%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
ROE (TTM)	17.37%	11.85%
ROA (TTM)	10.78%	4.59%
Net Margin (TTM)	11.75%	9.36%
Operating Margin (TTM)	16.30%	17.39%
Gross Margin (TTM)	33.42%	73.08%

Growth

Revenue Growth

ServiceNow (NOW) at 20.88% is around its peer norm for revenue growth, while Cognizant (CTSH) at 6.95% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Cognizant (CTSH) at 1.11% and ServiceNow (NOW) at 22.08% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
Revenue Growth (YoY)	6.95%	20.88%
Revenue Growth (3Y CAGR)	2.80%	22.38%
EPS Growth (YoY)	1.11%	22.08%
EPS Growth (3Y CAGR)	1.12%	73.46%

Financial Strength

Current Ratio (MRQ)

Cognizant (CTSH) at 2.22 keeps current ratio within its industry’s typical mid-range, while ServiceNow (NOW) at 0.72 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for NOW.

CTSH

Software & Services industry group

2.22

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

NOW

Software & Services industry group

0.72

Max: 5.11
Q3: 2.77
Median: 1.67
Q1: 1.01
NOW: 0.72
Min: 0.03

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Cognizant (CTSH) at 0.14 and ServiceNow (NOW) at 0.64 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

CTSH

Software & Services industry group

0.14

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

NOW

Software & Services industry group

0.64

Max: 2.52
Q3: 1.13
NOW: 0.64
Median: 0.40
Q1: 0.07
Min: 0.00

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
Current Ratio (MRQ)	2.22	0.72
Debt / Equity (MRQ)	0.14	0.64
Net Debt / EBITDA	0.14	1.18

Dividends

Dividend Yield (TTM)

ServiceNow (NOW) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Cognizant (CTSH) reports a yield of 1.98%, ranking against industry peers normally.

CTSH

Software & Services industry group

1.98%

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

NOW

Software & Services industry group

0.00%

NOW: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

ServiceNow (NOW) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Cognizant (CTSH) reports a payout of 23.72%, ranking against industry peers normally.

CTSH

Software & Services industry group

23.72%

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

NOW

Software & Services industry group

0.00%

NOW: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
Dividend Yield (TTM)	1.98%	0.00%
Dividend Payout Ratio (TTM)	23.72%	0.00%

Valuation

P/E Ratio (TTM)

Cognizant (CTSH) at 11.81 sits in the cheaper P/E ratio quartile, while ServiceNow (NOW) at 73.36 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.

CTSH

Software & Services industry group

11.81

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

NOW

Software & Services industry group

73.36

Max: 112.94
NOW: 73.36
Q3: 60.32
Median: 32.91
Q1: 18.77
Min: 6.69

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Cognizant (CTSH) at 1.32 sits in the cheaper P/S ratio quartile while ServiceNow (NOW) at 6.86 prices around its industry’s middle — CTSH costs less per dollar of sales, though read it alongside growth and margins.

CTSH

Software & Services industry group

1.32

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

NOW

Software & Services industry group

6.86

Max: 17.91
Q3: 8.78
NOW: 6.86
Median: 4.25
Q1: 2.23
Min: 0.02

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Cognizant (CTSH) at 1.97 and ServiceNow (NOW) at 8.08 are valued close to their industries’ norm against book — neither stands out from peers.

CTSH

Software & Services industry group

1.97

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

NOW

Software & Services industry group

8.08

Max: 16.63
Q3: 8.50
NOW: 8.08
Median: 4.30
Q1: 1.92
Min: -3.90

Cognizant (CTSH) vs. ServiceNow (NOW): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cognizant (CTSH) and ServiceNow (NOW)
Metric	CTSH	NOW
P/E Ratio (TTM)	11.81	73.36
P/S Ratio (TTM)	1.32	6.86
P/B Ratio (MRQ)	1.97	8.08
Free Cash Flow Yield (TTM)	7.19%	5.44%