CTSH
Technology · Information Technology Services
Performance
CTSH (CTSH) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
CTSH (CTSH) operates in the Information Technology Services space within the Technology sector. With a market cap of $24.1B, it qualifies as a mid-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.
- Low P/E of 11.0× suggests the stock may be undervalued relative to earnings
- Forward P/E (8.3×) is lower than trailing P/E (11.0×) — analysts expect earnings to improve
- Revenue growth of 6% YoY shows solid business momentum
- Healthy profit margin of 10.4%
- Current ratio of 2.2× — ample short-term liquidity
- Dividend yield of 2.60% provides consistent income on top of price appreciation
- Price is near its 52-week low — potential entry point with asymmetric upside
- High debt-to-equity of 7.25× increases financial risk, especially with elevated interest rates
Verdict
Strong Buy
Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
Current DY
2.60%
5Y Avg Annual
$1.0680
Last Payment
$0.3300
Ex-Date
05/18/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest05/18/2026 | 05/27/2026 | $0.3300 | 2.59% |
02/18/2026 | 02/27/2026 | $0.3300 | 2.59% |
11/18/2025 | 11/27/2025 | $0.3100 | 2.44% |
08/18/2025 | 08/27/2025 | $0.3100 | 2.44% |
05/19/2025 | 05/28/2025 | $0.3100 | 2.44% |
02/18/2025 | 02/27/2025 | $0.3100 | 2.44% |
11/19/2024 | 11/28/2024 | $0.3000 | 2.36% |
08/20/2024 | 08/29/2024 | $0.3000 | 2.36% |
Magic Number
Shares needed to self-fund your next purchase
$50.87
Price
$0.3300
Last div. (quarterly)
155
shares
Own 155 CTSH shares ($7,884.85) and each quarterly dividend pays for 1 new share — the snowball runs on its own.
Investment target
$7,884.85
New shares / year
+4 shares
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Jul 29, 2026
43
days
EPS (TTM)
$4.61
P/E (TTM)
11.0
Fwd P/E
8.3
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $50.87
Graham Number
√(22.5 × EPS × Book Value)
$57.42
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
$18.80
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
9/10
90% score
Pays dividends
9Y hist.9+ years of dividend history
Dividend consistency (5Y+)
9 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
14.9%Return on equity — measures how efficiently capital is used
Positive profit margin
10.4%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+5.8%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+3.6%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
7.25×Low financial leverage reduces risk of distress
Current ratio above 1
2.23×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$370M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
2.60%Stock must distribute income to shareholders
Related Assets
Technology
About CTSH
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. The company provides services including 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. In addition, the company 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, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
Sector
Technology
Industry
Information Technology Services
Location
Teaneck, United States
Employees
357,600