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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.
