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Cognizant Technology Solutions Corp Class A

CTSH: XNAS (USA)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$55.00	Spgdtpc	Yyrvwsvx

Cognizant Earnings: Firm Focuses on Profitability as Top-Line Expansion Slows

Malik Ahmed Khan

Feb 7, 2024

We are maintaining our $94 fair value estimate for Cognizant after the firm reported strong financial results to close out fiscal 2023. The upward impact of these results on our fair value estimate was offset by the weaker-than-expected guidance for fiscal 2024. All considered, we continue to view Cognizant as materially undervalued and think that the market is allowing near-term discretionary weakness to factor into longer-term discretionary spending expectations. We expect discretionary spending to rebound as macroeconomic weakness dissipates, which we believe will enable Cognizant to rejuvenate its top-line growth.

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