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
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 0.8% |
| Our one-year growth estimate | diamond | 5.5% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
A larger daily loss that occurred about once in every 20 trading days.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 4.8 percentage points less one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 38 industry peers · Company calendar date is not available
CTSH — earnings in line
Dated 2026-07-29
Results of Operations and Financial Condition. On July 29, 2026 , Cognizant Technology Solutions Corporation (the “Company”), issued a press release to report the Company’s financial results for the quarter ended June 30, 2026. The full text of the press release and the infographic embedded in and part of such press release are attached to this current report on Form 8-K as Exhibits 99.1 and 99.2, respectively.*
Why it matters: More savings mean Cognizant is doing better. It shows they are making more money.
Supportive ifProject Leap generates savings of $300 million or more in 2026.
Worry ifProject Leap savings were less than $200 million.
Why it matters: EPS growth below 3% shows problems with making money and growing earnings.
Worry ifEPS growth reported at less than 3% year over year.
Less concerning ifEPS growth reported above 3% year over year.
Why it matters: If guidance is missed, it may show Cognizant's revenue growth is slowing. This could hurt investor confidence.
Worry ifQ3 revenue growth was below 3.4% compared to last year.
Less concerning ifQ3 revenue growth meets or exceeds 3.4% year-over-year.
Why it matters: More repurchases show management believes in the company's value. This could help the share price.
Supportive ifAnnouncement of a new share repurchase program or an increase in the current program.
Worry ifNo new announcements or a cut in share repurchase activity.
We watch for confirming and disproving signals on each item. Resolutions are found automatically where possible and checked by hand for unclear cases. Last 90 days shown.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$192 on $10,000 · ±1.9% | How much price usually moves either way. |
| Bad day | $378 loss on $10,000 · 3.8% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $5,511 loss on $10,000 · 55.1% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: How Cognizant uses the borrowed money will show its financial health and plans.
Watch forManagement shares a clear plan for using the $1 billion borrowed.
Also watch forNo clear plan or negative commentary on the borrowing impact.
Why it matters: A drop in bookings growth shows weaker demand for Cognizant's services.
Worry ifBookings growth falls below 5% year-over-year.
Less concerning ifTrailing bookings growth remains at or above 5% year-over-year.
Why it matters: A drop in operating margin shows problems with managing costs and making money.
Worry ifOperating margin was less than 15.6% for Q2 2026.
Less concerning ifOperating margin reported at or above 16.0% for Q2 2026.
Why it matters: A better operating margin shows that the company is managing costs well.
Supportive ifOperating margin goes up by more than 1% from the last quarter.
Worry ifOperating margin goes down or stays the same from the last quarter.
Why it matters: Project Leap aims to make operations better. It could increase profits if it works.
Watch forAdjusted operating margin rises to 16.0% or more by the end of 2026.
Also watch forAdjusted operating margin stays below 16.0% by the end of 2026.
Why it matters: Updates on Project Leap could show how well Cognizant is changing its work.
Watch forManagement says Project Leap has saved a lot of money.
Also watch forProject Leap does not deliver the expected savings or changes.
Why it matters: Higher costs might hurt margins. This can change the operating model.
Worry ifCosts related to Project Leap exceed $320 million.
Less concerning ifCosts related to Project Leap are at or below $230 million.
Why it matters: Approval could clear legal issues and help investor feelings.
Supportive ifThe court approves the settlement for the lawsuit.
Worry ifCourt denies the settlement of the derivative action.
Why it matters: Growth in large deal bookings shows strong client demand. This indicates good revenue potential in the future.
Supportive ifCognizant reports large deal bookings growth above 21% in subsequent quarters.
Worry ifLarge deal bookings growth drops below 21% in the next quarter.
Why it matters: Going over this amount would show strong commitment to returning capital. This would boost investor confidence.
Supportive ifTotal share repurchases were over $1 billion for 2026.
Worry ifTotal share repurchases were below $1 billion for 2026.
Why it matters: The outcome of this hearing could impact Cognizant's legal standing and financial health.
Worry ifThe court approves the settlement on September 14, 2026.
Less concerning ifThe court denies the settlement. This leads to more legal actions.