CTSH vs. PANW: Cognizant vs. Palo Alto Networks Stock Comparison

November 11, 2026

How do Cognizant (CTSH) and Palo Alto Networks (PANW) 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 Palo Alto Networks (PANW) both fall under the Software & Services industry group, but CTSH is classified in IT Services while PANW is classified in Software.

Company profile comparison for Cognizant (CTSH) and Palo Alto Networks (PANW)
Profile Item	CTSH	PANW
Name	Cognizant Technology Solutions Corp. Class A Common Stock	Palo Alto Networks, 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	256.86 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	June 19, 1998	July 20, 2012
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CTSH

PANW

GSPC

Cognizant (CTSH) vs. Palo Alto Networks (PANW), 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 Palo Alto Networks (PANW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cognizant (CTSH) and Palo Alto Networks (PANW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cognizant (CTSH) and Palo Alto Networks (PANW)
Metric	CTSH	PANW
Total Return (1Y)	-10.80%	53.99%
Total Return (3Y, Annualized)	1.40%	39.16%
Total Return (5Y, Annualized)	-2.88%	30.80%

Risk Profile

Drawdown History

CTSH

PANW

GSPC

Cognizant (CTSH) vs. Palo Alto Networks (PANW), 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 Palo Alto Networks (PANW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cognizant (CTSH) and Palo Alto Networks (PANW)
Metric	CTSH	PANW
Volatility (1Y, Annualized)	43.62%	51.34%
Beta (5Y)	0.83	1.00
Max Drawdown (5Y)	-56.08%	-36.01%
Avg. Volume (3M)	6.65M	6.03M

Risk-Adjusted Performance

Risk-Return Positioning

CTSH and PANW 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 Palo Alto Networks (PANW)
Metric	CTSH	PANW
Sharpe Ratio (1Y)	-0.35	0.97
Sortino Ratio (1Y)	-0.50	1.49

Profitability

ROE (TTM)

Both Cognizant (CTSH) at 17.37% and Palo Alto Networks (PANW) at 1.74% 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%

PANW

Software & Services industry group

1.74%

Max: 53.85%
Q3: 17.90%
Median: 6.59%
PANW: 1.74%
Q1: -9.59%
Min: -50.52%

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both Cognizant (CTSH) at 11.75% and Palo Alto Networks (PANW) at 2.67% 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%

PANW

Software & Services industry group

2.67%

Max: 41.17%
Q3: 15.28%
Median: 4.63%
PANW: 2.67%
Q1: -5.42%
Min: -33.17%

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Cognizant (CTSH) at 16.30% and Palo Alto Networks (PANW) at 5.40% 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%

PANW

Software & Services industry group

5.40%

Max: 46.89%
Q3: 17.64%
Median: 8.73%
PANW: 5.40%
Q1: -2.13%
Min: -30.45%

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cognizant (CTSH) and Palo Alto Networks (PANW)
Metric	CTSH	PANW
ROE (TTM)	17.37%	1.74%
ROA (TTM)	10.78%	1.40%
Net Margin (TTM)	11.75%	2.67%
Operating Margin (TTM)	16.30%	5.40%
Gross Margin (TTM)	33.42%	70.38%

Growth

Revenue Growth

Palo Alto Networks (PANW) at 24.50% 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. Palo Alto Networks (PANW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Cognizant (CTSH) at 1.11% is around its peer norm for EPS growth, while Palo Alto Networks (PANW) at -75.00% drops into the bottom quartile, signaling weaker earnings momentum.

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cognizant (CTSH) and Palo Alto Networks (PANW)
Metric	CTSH	PANW
Revenue Growth (YoY)	6.95%	24.50%
Revenue Growth (3Y CAGR)	2.80%	18.54%
EPS Growth (YoY)	1.11%	-75.00%
EPS Growth (3Y CAGR)	1.12%	-14.50%

Financial Strength

Current Ratio (MRQ)

Cognizant (CTSH) at 2.22 keeps current ratio within its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PANW.

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

PANW

Software & Services industry group

0.87

Max: 5.11
Q3: 2.77
Median: 1.67
Q1: 1.01
PANW: 0.87
Min: 0.03

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Cognizant (CTSH) at 0.14 and Palo Alto Networks (PANW) at 0.09 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

PANW

Software & Services industry group

0.09

Max: 2.52
Q3: 1.13
Median: 0.40
PANW: 0.09
Q1: 0.07
Min: 0.00

Cognizant (CTSH) vs. Palo Alto Networks (PANW): 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 Palo Alto Networks (PANW)
Metric	CTSH	PANW
Current Ratio (MRQ)	2.22	0.87
Debt / Equity (MRQ)	0.14	0.09
Net Debt / EBITDA	0.14	-0.32

Dividends

Dividend Yield (TTM)

Palo Alto Networks (PANW) 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%

PANW

Software & Services industry group

0.00%

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

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Palo Alto Networks (PANW) 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%

PANW

Software & Services industry group

0.00%

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

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cognizant (CTSH) and Palo Alto Networks (PANW)
Metric	CTSH	PANW
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 Palo Alto Networks (PANW) at 784.60 trades above its peer range — a wide earnings-valuation gap relative to industry peers.

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

PANW

Software & Services industry group

784.60

PANW: 784.60
Max: 112.94
Q3: 60.32
Median: 32.91
Q1: 18.77
Min: 6.69

Cognizant (CTSH) vs. Palo Alto Networks (PANW): 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 Palo Alto Networks (PANW) at 22.37 prices above its industry range — a wide gap in sales valuation between them.

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

PANW

Software & Services industry group

22.37

PANW: 22.37
Max: 17.91
Q3: 8.78
Median: 4.25
Q1: 2.23
Min: 0.02

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Cognizant (CTSH) at 1.97 is valued about in line with its industry on P/B ratio, while Palo Alto Networks (PANW) at 9.30 carries an above-peer premium to book — PANW is pricier on assets.

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

PANW

Software & Services industry group

9.30

Max: 16.63
PANW: 9.30
Q3: 8.50
Median: 4.30
Q1: 1.92
Min: -3.90

Cognizant (CTSH) vs. Palo Alto Networks (PANW): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cognizant (CTSH) and Palo Alto Networks (PANW)
Metric	CTSH	PANW
P/E Ratio (TTM)	11.81	784.60
P/S Ratio (TTM)	1.32	22.37
P/B Ratio (MRQ)	1.97	9.30
Free Cash Flow Yield (TTM)	7.19%	1.65%