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

Company Overview - Cognizant Technology Solutions Corporation (CTSH) has a market cap of $34.5 billion and is a leading global professional services company providing consulting, technology, and outsourcing services with a focus on digital transformation in AI, cloud, IoT, and software engineering [1] - Cognizant serves various industries including financial services, healthcare, life sciences, products and resources, and communications, media, and technology, helping clients modernize operations and enhance customer experiences [2] Stock Performance - Cognizant's shares have fallen 23.5% from their 52-week high of $90.82 and decreased 13.6% over the past three months, underperforming the S&P 500 Index, which gained nearly 9% in the same period [3] - Year-to-date, CTSH stock is down 9.6%, lagging behind the S&P 500's nearly 12% rise, and has dropped 8.9% over the past 52 weeks compared to the S&P 500's 17.7% return [4] Financial Performance - In Q2 2025, Cognizant reported earnings of $1.31 per share and revenue of $5.25 billion, beating estimates, yet the stock fell 2.4% the following day [5] - Cash and short-term investments declined to $1.8 billion, and free cash flow dropped to $331 million, raising concerns about slowing growth in key segments [5] Competitive Landscape - Rival Broadridge Financial Solutions, Inc. (BR) has outperformed Cognizant, with BR stock gaining over 12% year-to-date and 20.3% over the past 52 weeks [6] - Despite the underperformance, analysts maintain a moderately optimistic outlook on CTSH, with a consensus rating of "Moderate Buy" and a mean price target of $88.16, representing a 26.9% premium to current levels [6]