Cognizant Technology Solutions Corporation (CTSH)
Cognizant is a global technology services firm that helps large businesses modernise their IT systems, manage data, and adopt new digital tools.
Is Cognizant Technology Solutions Corporation a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Strong, established reputation with large corporate clients. Worth weighing: Growth has been relatively slow compared to high-flying tech firms. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Cognizant Technology Solutions Corporation actually fallen?
Over the last 2 years of daily prices, Cognizant Technology Solutions Corporation fell as much as −57% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Becoming a primary partner for global digital transformation
Structural decline in demand for traditional IT outsourcing
What does Cognizant Technology Solutions Corporation do?
Think of Cognizant as the 'plumbers' of the corporate digital world; they help big companies keep their software running, move their data to the cloud, and build new apps. The business gets paid by charging these clients for the time and expertise of its massive workforce of consultants and engineers. Whether they keep pace with the rapid shift toward artificial intelligence will decide if they stay essential to their clients.
On our factor screen it looks strongest on value and income, and weakest on growth.
- ✓Pays a dividend - about 2.4% a year
- ✓Growing - revenue up about 4% over the year
- ·Low P/E of 12 vs last year's earnings
- ✓Low debt - a sturdier balance sheet
- Value screens high (85/100)
- Income screens high (71/100)
- Strong, established reputation with large corporate clients
- Consistent ability to generate profit and pay dividends
- Relatively low price-to-earnings ratio compared to some tech peers
- Growth screens low (29/100)
- Rapid changes in technology could make their current service model obsolete
- Difficulty in hiring and retaining skilled technical staff
- Potential for clients to bring IT services in-house to save costs
What do Cognizant Technology Solutions Corporation's numbers mean?
How much money does Cognizant Technology Solutions Corporation make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Cognizant Technology Solutions Corporation pay a dividend?
Yes - Cognizant Technology Solutions Corporation currently pays a dividend of about 2.4% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
What do the numbers say about Cognizant Technology Solutions Corporation's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
When does Cognizant Technology Solutions Corporation report earnings, and how did recent quarters go?
Cognizant Technology Solutions Corporation is next scheduled to report on about 2026-10-28 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-29 | $1.38 | $1.37 | In line |
| 2026-04-29 | $1.33 | $1.40 | Beat +5% |
| 2026-02-04 | $1.32 | $1.35 | Beat +2% |
| 2025-10-29 | $1.30 | $1.39 | Beat +7% |
| 2025-07-30 | $1.26 | $1.31 | Beat +4% |
| 2025-04-30 | $1.20 | $1.23 | Beat +3% |
Across the last 6 quarters here, Cognizant Technology Solutions Corporation came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Cognizant Technology Solutions Corporation?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Cognizant Technology Solutions Corporation?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Strong, established reputation with large corporate clients
- Consistent ability to generate profit and pay dividends
- Relatively low price-to-earnings ratio compared to some tech peers
- Growth has been relatively slow compared to high-flying tech firms
- Faces intense competition from both global and local IT service providers
- Heavy reliance on the health of the broader corporate economy
- Rapid changes in technology could make their current service model obsolete
- Difficulty in hiring and retaining skilled technical staff
- Potential for clients to bring IT services in-house to save costs
The write-up's own warning lights — if these start happening, the case above changes.
- A significant, sustained drop in revenue growth
- A major change in leadership or strategy that fails to deliver results
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.