Live Report · Updated February 27, 2026

Cognizant vs Ericsson

Cognizant vs Ericsson: this page compares business models, financial performance, and market context to help readers understand how the two companies relate within their sectors. The analysis presents neutral information on strategy, operations, and market positioning without speculation or endorsements. Educational content, not financial advice.

Cognizant vs Ericsson: this page compares business models, financial performance, and market context to help readers understand how the two companies relate within their sectors. The analysis presents...

Comparison Snapshot

Key Financial Metrics

CTSH

Metric

ERIC

$31.07B

Market Cap

$38.00B

35.86%

Potential Profit

-25.58%

Hold

Analyst Rating

Hold

Why It's Moving

Cognizant Faces Analyst Caution Amid AI Disruption Despite Earnings Beat and 2026 Upside Projections

Q4 2025 earnings surpassed estimates despite revenue shortfall, underscoring resilient execution in a tough IT landscape.
BMO and Jefferies cut targets citing AI disruption risks and outsourcing saturation, tempering optimism even as some see 23%+ upside by 2026.
UAE partnership boosts digital transformation outlook, countering broader concerns over labor shifts and multiple expansion limits.

Sentiment:

⚖️Neutral

ERIC Stock Warning: Why Analysts See -22% Downside Risk

Proposed SEK 3.00 dividend at the 2026 AGM signals board confidence in cash flow stability, split into two payments to reward long-term holders.
New LTV 2026 plan using up to 7.4M shares and a SEK 1.65B key contribution program aim to align executive incentives with performance amid efficiency pushes.
Stock's 2.3% weekly decline reflects investor caution on modest 2.56% revenue growth forecasts and risks from competition, even as DCF models peg fair value slightly above current levels.

Sentiment:

🐻Bearish

Cognizant Faces Analyst Caution Amid AI Disruption Despite Earnings Beat and 2026 Upside Projections

Q4 2025 earnings surpassed estimates despite revenue shortfall, underscoring resilient execution in a tough IT landscape.
BMO and Jefferies cut targets citing AI disruption risks and outsourcing saturation, tempering optimism even as some see 23%+ upside by 2026.
UAE partnership boosts digital transformation outlook, countering broader concerns over labor shifts and multiple expansion limits.

Sentiment:

⚖️Neutral

ERIC Stock Warning: Why Analysts See -22% Downside Risk

Proposed SEK 3.00 dividend at the 2026 AGM signals board confidence in cash flow stability, split into two payments to reward long-term holders.
New LTV 2026 plan using up to 7.4M shares and a SEK 1.65B key contribution program aim to align executive incentives with performance amid efficiency pushes.
Stock's 2.3% weekly decline reflects investor caution on modest 2.56% revenue growth forecasts and risks from competition, even as DCF models peg fair value slightly above current levels.

Sentiment:

🐻Bearish

Investment Analysis

Cognizant

CTSH

Pros

Cognizant generates strong free cash flow, projected to grow steadily over the next few years, supporting shareholder returns and reinvestment.
The company is expanding its digital services and cloud offerings, winning new clients in healthcare and financial sectors, which boosts revenue growth.
Cognizant's asset efficiency is above industry average, with a sales-to-total-assets ratio of 1.04, indicating effective use of resources.

Considerations

Despite recent share price gains, Cognizant's one-year return lags behind some peers, reflecting lingering investor caution.
The company's return on equity is lower than several major competitors, suggesting less efficient use of shareholder capital.
Cognizant's valuation metrics, including a forward P/E above 13, may limit upside if earnings growth slows unexpectedly.

Ericsson

ERIC

Pros

Ericsson maintains a leading position in 5G network infrastructure, benefiting from global demand for next-generation mobile technology.
The company has a strong balance sheet with manageable debt levels and consistent cash generation from core operations.
Ericsson's return on equity is above industry average, reflecting efficient capital allocation and profitability.

Considerations

Ericsson faces intense competition from rivals like Nokia and Huawei, pressuring margins and market share in key regions.
The business is exposed to cyclical demand in telecom capital expenditure, which can lead to revenue volatility.
Regulatory and geopolitical risks, especially in major markets, could disrupt supply chains and project timelines.

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