Cognizant vs Credo

This page compares Cognizant (Cognizant Technology Solutions Corp.) and Credo (CREDO TECHNOLOGY GROUP HOLDING LTD), looking at their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

This page compares Cognizant (Cognizant Technology Solutions Corp.) and Credo (CREDO TECHNOLOGY GROUP HOLDING LTD), looking at their business models, financial performance, and market context in a neu...

Comparison Snapshot

Key Financial Metrics

CTSH

Metric

CRDO

$31.83B

Market Cap

$21.94B

31.51%

Potential Profit

83.35%

Hold

Analyst Rating

Buy

Why It's Moving

Cognizant Powers Up AI Push with Google Cloud, Fueling Analyst Optimism for 33% Upside by 2026

Q4 earnings topped estimates with $1.35 EPS versus $1.32 expected, driven by robust bookings and AI investments that signal sustained demand in financial services and health sciences.
Fresh Google Cloud pact advances agentic AI deployment, enabling clients to scale AI from strategy to real-world execution for tangible business gains.
Raised 2026 revenue outlook to $22.14-$22.66 billion exceeds consensus, paired with dividend hike to $0.33/share and $1.6 billion shareholder returns, highlighting operational strength.

Sentiment:

🐃Bullish

Cognizant Powers Up AI Push with Google Cloud, Fueling Analyst Optimism for 33% Upside by 2026

Q4 earnings topped estimates with $1.35 EPS versus $1.32 expected, driven by robust bookings and AI investments that signal sustained demand in financial services and health sciences.
Fresh Google Cloud pact advances agentic AI deployment, enabling clients to scale AI from strategy to real-world execution for tangible business gains.
Raised 2026 revenue outlook to $22.14-$22.66 billion exceeds consensus, paired with dividend hike to $0.33/share and $1.6 billion shareholder returns, highlighting operational strength.

Sentiment:

🐃Bullish

Investment Analysis

Cognizant

CTSH

Pros

Delivered year-on-year revenue growth above 7% and recent earnings per share above consensus, reflecting solid execution and resilient demand.
Maintains a robust balance sheet with low debt ratios and strong liquidity, reducing financial risk and supporting dividends and buybacks.
Operates across diverse industries and geographies, benefiting from recurring revenue streams in consulting, digital, and IT services.

Considerations

Guidance for full-year 2025 earnings per share suggests only modest growth, with limited upside compared to some high-growth peers.
High customer concentration in certain sectors could expose the company to slower spending cycles or market-specific downturns.
Dividend yield remains relatively low at under 2%, which may not appeal to income-focused investors.

Credo

CRDO

Pros

Specialises in high-speed connectivity solutions for data infrastructure, positioning the company for growth in AI, cloud, and advanced networking markets.
Recent stock price appreciation and strong revenue trends reflect robust demand for its niche technology in an increasingly data-driven economy.
Low competitive overlap with traditional IT services firms, maintaining a differentiated technology portfolio in fast-growing segments.

Considerations

Current price-to-earnings ratio exceeds 250, signalling that much of near-term growth potential may already be reflected in the valuation.
Reliant on continued rapid adoption of advanced networking technologies, exposing the company to cyclical shifts in enterprise and data centre spending.
Market capitalisation and share float are smaller than many peers, potentially increasing share price volatility and limiting index inclusion.

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