NASDAQInformation TechnologyInformation Technology ServicesSnapshot 2026-08-31
Reading CTSH? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Intact: The reason to own it still holds.
Cognizant grows revenue about 6% a year. Profit margin is near 16%. EPS grows over 7% in 2026. AI projects support future growth.
Revenue and earnings missed targets recently. Profit margin fell from 16.7% to 15.6%. AI transition risks may hurt growth. The stock is down 30%.
The price is about 35% below our fair value near $67. Analysts expect 6% revenue growth. The market prices in cautious growth and some risks.
Breaks if: EPS falls below $5.22 in FY26
Breaks if: Operating margin falls below 15.6% in FY26
Breaks if: Project Leap progress stalls or reverses
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a stable management team. The current thesis is intact, supported by consistent revenue and margin growth, despite some near-term risks in the tech sector.
The valuation is considered cheap compared to peers, indicating that the market may not fully reflect the company's potential for growth. There is a slight expectations gap, suggesting that the market is cautiously optimistic but not overly aggressive.
Management is on track with its priorities, including increasing revenue growth and expanding operating margins. Recent financial performance has been neutral, with a low probability of missing earnings expectations, although the company has faced challenges in the past.
The long-term thesis hinges on the performance of sector bellwethers like IBM, ACN, and CDW. Positive earnings and guidance from these companies could provide a favorable environment for CTSH, while any negative shifts could pose risks.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. Cognizant's partnership in AI advances its builder strategy. However, the company cut its annual revenue guidance, which threatens growth expectations.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Revenue falls below $21.07 billion in FY26
In the next 1 to 3 years, CTSH's performance will depend on its ability to navigate sector challenges while maintaining its growth trajectory. Not investment advice.
