Cognizant Technology Solutions Corp Class A (CTSH)
Official siteTECHNOLOGY • INFORMATION TECHNOLOGY SERVICES • NASDAQ
Market Cap: $29.09B
Last updated: Sep 01, 2026 at 5:00 PM ET
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Related GNG Research
Accenture: My March Fair Value Was Too High. The Stock Is Still Too Cheap
I overstated March fair value, cutting blended Vulcan BFV to $227.62 (-22%), stock trading at $176.89, down ~17% since March and bottoming at $118.15 in June Fiscal Q2 showed strength - record bookings $22.11B (+6%), book-to-bill 1.2, free cash flow $3.7B, adjusted operating margin +30bps, management raised FY FCF guide by $1.0B Fiscal Q3 mixed - bookings -3% LC to $19.32B, consulting +1% LC to $9.3B, revenue +3% LC to $18.7B, operating margin 17.0% (+20bps), EPS $3.80 (+9%), FCF $3.6B, FY FCF guide $10.8-11.5B AI is both the biggest opportunity and structural risk - automation can compress hours-based economics, but 104 client engagements >$100M (+13%) and ~$38B RPO argue durable integration demand Primary downside risk is M&A cadence - Vulcan normalizes $2.53B annual acquisition burden, implying normalized FCFF ~$9.13B; management's FY26 acquisition plan near ~$9B could materially lower fair value further
Accenture: The Dividend Compounder Trading at a Value Price
ACN trades at 14.4x forward earnings with a 100th-percentile EPS predictability score and 40x interest coverage. The market is pricing it like a utility. The business is still growing bookings at double digits. The Chowder Rule on ACN is 16.2%, clearing the 15% quality compounder threshold. Forward yield of 3.0% combined with 13.1% five-year dividend growth rate makes the income case as strong as the value case. Gen AI bookings at Accenture nearly doubled to $5.9B in FY25. The AI disruption narrative is backwards: enterprise clients are hiring ACN to implement AI, not replacing it with AI. Blended fair value: $292. Current price near $213. That is a 27% discount on a business with Quality Score 94, Safety Score 97.36, and negative net working capital risk. Strong Buy zone is active. The invalidation trigger is specific: two consecutive quarters of declining bookings plus a guidance cut below 2% FY26 revenue growth. Until that happens, the drawdown is price compression, not franchise deterioration.
Government Contracts
Federal contract obligations are bookings recorded by the awarding agency, not recognized revenue. They can exceed 100% of revenue and can be negative when contracts are de-obligated. Source: USAspending.gov prime awards, data through Jul 31, 2026.
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Frequently Asked Questions About CTSH
- What is CTSH's current dividend yield?
- Cognizant Technology Solutions Corp Class A (CTSH) has a current dividend yield of 2.01%.
- Does CTSH pay dividends?
- Yes, Cognizant Technology Solutions Corp Class A pays dividends with a current yield of 2.01%.
- What is CTSH's P/E ratio?
- Cognizant Technology Solutions Corp Class A has a price-to-earnings (P/E) ratio of 11.72.
- What is CTSH's market cap?
- Cognizant Technology Solutions Corp Class A (CTSH) has a market capitalization of $29.09B with a current stock price of $64.58.
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