Nasdaq · Services-Computer Programming Services
Quote as of Oct 9, 2:30 PM ET · delayed
Fairly Valued. Our fair value estimate is USD 62.89 against a price of USD 59.36, +6% implied upside. Reasoning and scenarios are in Cognizant stock falls 3.9% with no clear new catalyst.
Cognizant Technology Solutions declared USD 1.24 per share in dividends in FY2025, up 3.3% from USD 1.20 in FY2024. At USD 59.36 that is a 2.09% trailing yield. The dividend took 27% of FY2025 diluted EPS of USD 4.56.
Cognizant stock is lower today, but the documents reviewed disclose no fresh development that explains the move. The latest results show steady growth and a sharp split between Financial Services and other businesses.
StockLarge CapTechnologyNo earnings notes for this company yet.
Revenue (USD, billions)
Margins (%)
Free cash flow (USD, billions)
Estimated ROIC (%)
Net debt (USD, billions)
Monetary values are in USD; revenue, FCF and net debt are in billions; EPS is per share. Missing values appear as gaps and “Not available.” Source: SEC EDGAR XBRL filings, latest restated values; quarterly cash flow derived from year-to-date figures; Q4 = fiscal year minus nine months. ROIC is NOPAT (21% tax) over debt plus equity.
| Period | Revenue | Gross % | Op % | FCF | EPS | ROIC % | Net debt |
|---|---|---|---|---|---|---|---|
| FY2016 | 13.5 | Not available | 17.0 | 1.34 | 2.55 | 15.6 | -1.15 |
| FY2017 | 14.8 | Not available | 16.8 | 2.12 | 2.53 | 17.1 | -1.13 |
| FY2018 | 16.1 | Not available | 17.4 | 2.21 | 3.60 | 18.2 | -0.41 |
| FY2019 | 16.8 | Not available | 14.6 | 2.11 | 3.29 | 16.5 | -1.95 |
| FY2020 | 16.6 | Not available | 12.7 | 2.90 | 2.57 | 14.5 | -2.02 |
| FY2021 | 18.5 | Not available | 15.3 | 2.22 | 4.05 | 17.7 | -1.17 |
| FY2022 | 19.4 | Not available | 15.3 | 2.24 | 4.41 | 18.1 | -1.55 |
| FY2023 | 19.4 | Not available | 13.9 | 2.01 | 4.21 | 15.4 | -2.02 |
| FY2024 | 19.7 | Not available | 14.7 | 1.83 | 4.51 | 14.9 | -1.36 |
| FY2025 | 21.1 | Not available | 16.1 | 2.60 | 4.56 | 17.2 | -1.36 |
Current price
USD 59.36
Fair value estimate
USD 62.89
Implied upside
+5.9%
Bear
25%USD 52
Direct equity valuation using assumed FCF multiple
Growth remains narrow and bookings weaken further, warranting a lower cash-flow multiple.
Base
50%USD 63
Direct equity valuation using assumed FCF multiple
Cash generation and current earnings support a modest premium to the share price, while mixed demand limits multiple expansion.
Bull
25%USD 73
Direct equity valuation using assumed FCF multiple
Broader organic growth and sustained margin performance would support a higher valuation multiple.
Cognizant announced it plans to release its third-quarter 2026 results before market open on Thursday, October 29, and hold a conference call at 8:30 a.m. Eastern to discuss the quarter’s operating performance.
Why this matters
This is a calendar notice, not new evidence about demand, margins or cash generation. For a services business, the useful information will come with the results and management’s account of operating performance: the scheduled call creates a checkpoint for investors, but the announcement itself changes no economics.