Is Cognizant Technology Solutions Stock Underperforming the S&P 500?

With a market cap of $34.5 billion, Cognizant Technology Solutions Corporation (CTSH) is a leading global professional services company. It provides consulting, technology, and outsourcing services across North America, Europe, and international markets, with a strong focus on digital transformation in areas such as AI, cloud, IoT, and experience-driven software engineering. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Cognizant fits this criterion perfectly. Serving industries including financial services, healthcare, life sciences, products and resources, and communications, media, and technology, Cognizant helps clients modernize operations, enhance customer experiences, and drive business growth.

Shares of the Teaneck, New Jersey-based company have fallen 23.5% from its 52-week high of $90.82. Cognizant’s shares have decreased 13.6% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) nearly 9% gain over the same time frame. 

In the longer term, CTSH stock is down 9.6% on a YTD basis, lagging behind SPX’s nearly 12% rise. Moreover, shares of the company have dropped 8.9% over the past 52 weeks, compared to the 17.7% return of the SPX over the same time frame.

The stock has been trading below its 50-day and 200-day moving averages since early July.

Despite beating Q2 2025 estimates with earnings of $1.31 per share and revenue of $5.25 billion on Jul. 30, Cognizant’s stock fell 2.4% the next day. Cash and short-term investments declined to $1.8 billion, free cash flow dropped to $331 million, and slowing growth in key segments like Communications, Media & Technology raised concerns.

In contrast, rival Broadridge Financial Solutions, Inc. (BR) has outpaced CTSH stock. BR stock has gained over 12% on a YTD basis and 20.3% over the past 52 weeks.

Despite the stock’s underperformance, analysts remain moderately optimistic on CTSH. The stock has a consensus rating of “Moderate Buy” from the 23 analysts in coverage, and the mean price target of $88.16 is a premium of 26.9% to current levels.