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Cognizant Technology Solutions Corp Class A - Stock Quote CTSH

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Morningstar's Cognizant Technology Solutions Corp Class A Stock Analysis

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5-Star Price

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Economic Moat

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Cognizant Faces Strong Headwinds and Stronger Demand in the First Quarter; Shares Attractive

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

Cognizant kicked off the year with decent first-quarter results ahead of FactSet consensus on the top line, however, bottom-line results came in short of expectations. Despite persistent challenges arising from talent shortages within the IT services industry, we remain impressed with Cognizant’s ability to expand its top line and shrink voluntary attrition rates over the quarter. While management has provided a conservative outlook for 2022, we believe elevated demand for Cognizant’s digital transformation services will continue to drive growth and offset the near-term headwinds. Furthermore, Cognizant’s acceleration of international revenue and bookings growth is promising. With this, we maintain our fair value estimate for narrow-moat Cognizant at $102 per share and view the stock as attractive.

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Cognizant Technology Solutions Corp Class A's Company Profile

Business Description

Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.

Contact
300 Frank W. Burr Boulevard, Suite 36, 6th Floor
Teaneck, NJ, 07666
T +1 201 801-0233
Sector Technology
Industry Information Technology Services
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Classic Growth
Employees 340,400

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