Model Update

Research evidence excerpt

Model Update

TD Cowen Cognizant Technology Solutions Corp.

Global Research June 26, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

We rate CTSH shares Hold. Relatively low valuation is apt to provide downside support for ■ 2Q26 results

shares, though some inconsistent financial performance and sectoral GenAI concerns have ■ Additional Bolt-on M&A announcements

weighed on sentiment. A recent pickup in large deal momentum has supported more upbeat ■ Capital returns execution

commentary. Sustaining the turnaround progress remains key. Balance sheet flexibility supports

shareholder-friendly initiatives and bolt-on M&A, but we await firmer signals that would drive

upside to estimates and/or multiple expansion.

Base Case Assumptions Upside Scenario Downside Scenario

■ FY26 CC revenue up 5.2% y/y ■ FY26 CC revenue growth above guide ■ FY26 CC revenue growth below guide

■ FY26 operating margin, adj of ~16.0% ■ Stronger than expected bookings ■ Booking deteriorate

■ FY26 FCF conversion of ~91% of ANI ■ Sustained improvement in operating ■ Operating margins deteriorate

margin trajectory

Price Performance Company Description

Cognizant Technology Solutions Corporation (CTSH) is a global business and technology

$100

consulting and outsourcing company. It offers a wide range of services across information

90 technology, business processes and operations, pairing a deep industry expertise across

sector verticals with a global delivery network that is primarily based in India. The company

80 was founded in 1994 when The Dun & Bradstreet Corporation spun out several subsidiaries,

including its internal IT development and maintenance arm.

50 Analyst Top Picks

40 Ticker Price (06/25/2026) Price Target Rating

Block XYZ $74.08 $101.00 Buy