Cognizant Technology Solutions Corporation (CTSH)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Cognizant as a steady but not exciting technology-services franchise. It serves large clients across financial services, health sciences, products and resources, and communications, media and technology, with 356,700 employees. The filed numbers show fiscal FY2025, the year ended 2025-12-31, revenue of $21.1B, up from $19.7B in fiscal FY2024, the year ended 2024-12-31, and $19.4B in fiscal FY2023, the year ended 2023-12-31. Fiscal FY2025 net income was $2.2B, and diluted EPS was $4.56 versus $4.51 in fiscal FY2024 and $4.21 in fiscal FY2023. That is modest top-line progress, while profit has been roughly flat. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $5.4B, net income $662.0M, and diluted EPS $1.39. FairStock calculations show low leverage and cash generation: debt/equity 0.14, Altman Z-Score 4.79, and trailing free cash flow of $2.6B, a 7.9% FCF yield. FairStock return metrics are decent but not superb—ROE 14.92% and ROCE 10.73%. The FairStock Lynch category is STALWART, based on 9.9% annual profit growth and 4.9% revenue growth over five years. At the $69.34 close on 2026-10-26, the FairStock P/E is 14.88, P/B 2.17, EV/EBITDA 8.41, and Graham Number $57.92, leaving a -21.79% margin of safety. FairStock Piotroski is 4/9. I would call this a financially sound, cash-generative business with only modest growth and returns; the numbers do not prove a wide moat, and the price is not a clear Graham bargain.

In plain English: Cognizant helps other companies with consulting, technology, and outsourcing work. The business looks financially solid—low debt, steady cash generation, and reasonable profits—but growth has been slow and profits have been roughly flat. At $69.34, the price looks fair to somewhat rich compared with its earnings and cash generation, not a clear bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer