Cognizant (CTSH)
NASDAQInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
$62.31-3.60%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
QuarterlyIQ Insights · CTSH
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks CTSH against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated neutral grew net income 55% of the time over the next year (vs 56% for the rest of the cohort, n=8445).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Sustain and accelerate revenue growth driven by AI-led strategy and large deal momentum across segments.
Stated as a priority in 7 of last 7 quarters. Revenue grew from $5.08 billion in 2024-Q4 to $5.48 billion in 2026-Q2, with constant currency growth of 4.1% in 2026-Q2. Management consistently emphasized sustaining and accelerating revenue growth driven by AI-led strategy and large deal momentum, delivering on this priority.
“Our organic revenue growth momentum continued in the second quarter and was at the high end of our expectations”
“We delivered first quarter revenue growth in the upper half of our guidance range”
“Fourth quarter revenue of $5.3 billion increased 4.9% year-over-year”
“Third quarter revenue grew 6.5% year-over-year and 2.8% sequentially in constant currency”
“Second quarter revenue of $5.25 billion increased 8.1% year-over-year or 7.2% in constant currency”
“Revenue of $5.1 billion increased 7.5% year-over-year or 8.2% in constant currency”
“Fourth quarter revenue of $5.1 billion increased 6.8% year-over-year or 6.7% in constant currency”
Continue to expand adjusted operating margin through operational rigor, cost discipline, and Project Leap transformation.
Stated as a priority in 7 of last 7 quarters. Adjusted Operating Margin expanded from 15.3% in 2024-Q4 to 16.0% in 2026-Q2, with 40 basis points expansion year-over-year in Q2 2026. Project Leap program is expected to generate $200M-$300M savings in 2026, supporting margin expansion. Management is delivering on margin expansion through operational rigor and transformation.
Drive adjusted diluted EPS growth through revenue growth, margin expansion, and operational efficiency.
Stated as a priority in 7 of last 7 quarters. Adjusted EPS grew from $4.75 in 2024 full year to $5.28 in 2025 full year, and increased 4.6% year-over-year to $1.37 in 2026-Q2. Management raised full-year 2026 Adjusted Diluted EPS guidance to $5.70 to $5.82, reflecting delivery on EPS growth through revenue and margin expansion.
“Adjusted EPS of $1.37 increased 4.6% year-over-year”
Continue disciplined capital allocation with significant share repurchases and dividend increases.
Stated as a priority in 7 of last 7 quarters. The company deployed $1.6 billion on share repurchases in the first half of 2026 and declared a quarterly dividend of $0.33 per share in Q2 2026, up from $0.31 in prior quarters. Management has consistently emphasized disciplined capital return, delivering substantial share repurchases and dividend increases.
“Deployed $1.6 billion on share repurchases in first half of 2026; declared $0.33 dividend per share”
Build AI capabilities, scale Frontier Certified Engineers and Business Operators, and embed AI in client solutions.
Newly stated in 2026-Q1 and reiterated in 2026-Q2. Management emphasizes scaling the Frontier Certified workforce and reskilling to support the AI builder strategy. While no direct financial metrics are cited, the company completed acquisitions aligned with AI capabilities and launched workforce certification programs, indicating progress in this strategic priority.
“Scaling our Frontier workforce and reskilling for the future as part of AI builder strategy”
Over the trailing year it converted 0.62x of net income into operating cash flow. Historically, Information Technology names rated fragile grew net income 42% of the time over the next year (vs 59% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
5 material management or governance events in the past 24 months, led by executive changes. Historically, Information Technology names rated stable grew net income 54% of the time over the next year (vs 60% for the rest of the cohort, n=2709).
Not investment advice. As of 2026-09-04.
“Adjusted Operating Margin of 16.0% increased 40 basis points year-over-year”
“Adjusted Operating Margin increased 10 basis points year-over-year”
“Full-year operating margin of 16.1% increased 140 basis points year-over-year”
“Operating margin of 16.0% increased 140 basis points year-over-year”
“Operating margin of 15.6% increased 100 basis points year-over-year”
“Operating margin of 16.7% increased 210 basis points year-over-year”
“Operating margin of 14.8% increased 40 basis points year-over-year”
“Adjusted EPS of $1.40 increased 13.8% year-over-year”
“Adjusted EPS of $5.28 increased 11% year-over-year for full year 2025”
“Adjusted EPS of $1.39 increased 11% year-over-year”
“Adjusted EPS of $1.31 increased 12% year-over-year”
“Adjusted EPS of $1.23 increased 10% year-over-year”
“Adjusted EPS of $4.75 increased year-over-year for full year 2024”
“Repurchased 6.3 million shares for $427 million in Q1 2026”
“Repurchased 4.3 million shares for $325 million in Q4 2025”
“Repurchased 6.3 million shares for $450 million in Q3 2025”
“Repurchased 4.5 million shares for $354 million in Q2 2025”
“Repurchased 2.3 million shares for $190 million in Q1 2025”
“Repurchased 1.8 million shares for $140 million in Q4 2024”
“Project Leap funds investments in AI capabilities and upskilling our workforce”