With a market cap of $39 billion, Cognizant Technology Solutions Corporation (CTSH) is a major global IT-services and consulting firm. Headquartered in Teaneck, New Jersey, it delivers a wide range of services, including IT consulting, digital transformation, cloud infrastructure, AI and automation, cybersecurity, business-process outsourcing, and enterprise systems integration.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Cognizant fits this criterion perfectly.
However, shares of the tech company have fallen 11.1% from its 52-week high of $90.82. Cognizant’s shares have decreased 12.4% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 8.7% rise over the same time frame.
In the longer term, CTSH stock is down 5% on a YTD basis, lagging behind NASX’s nearly 22.1% rise. Moreover, shares of the company have dropped marginally over the past 52 weeks, compared to NASX’s 19.7% return over the same time frame.
Despite the grim price action, the stock has been trading above its 50-day and 200-day moving averages since late October and late November, respectively.
Following its Q3 2025 earnings release on Oct. 29, Cognizant shares surged 5.7%, driven by results that exceeded expectations, with adjusted EPS of $1.39 and revenue of $5.42 billion. The company boosted confidence further by raising its full-year adjusted earnings forecast to $5.22–$5.26 per share and lifting the lower end of its annual revenue outlook to $21.05 billion. Investor enthusiasm was additionally supported by the company’s strong AI-centric growth initiatives and rising enterprise investment in digital infrastructure.
Top rival, Broadridge Financial Solutions, Inc. (BR), has faced a similar fate. BR stock has gained over 2.6% on a YTD basis and has dwindled 1.7% over the past 52 weeks.
The stock has a consensus rating of “Moderate Buy” from the 24 analysts in coverage, and the mean price target of $85.52 is a premium of 5.9% to current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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