Quick verdict: CTSH vs FICO in 2026

In this CTSH vs FICO stock comparison 2026, Fair Isaac Corporation (FICO) holds a stronger overall edge due to its superior growth metrics and robust profitability, which analysts also favor. Cognizant Technology Solutions Corporation (CTSH), however, presents a more compelling valuation and significantly higher potential upside according to discounted cash flow (DCF) analysis and analyst price targets. While FICO excels in growth, margins, and analyst sentiment, CTSH stands out as the clear value leader with greater forecast appreciation. Not investment advice.

CTSH vs FICO: key metrics side by side

Full side-by-side comparison of CTSH and FICO across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-04.

CTSH vs FICO valuation comparison

When assessing the CTSH vs FICO valuation, Cognizant Technology Solutions Corporation (CTSH) appears significantly more attractive from a traditional valuation standpoint. CTSH boasts a P/E ratio of 11.04x, which is substantially lower than FICO’s P/E of 32.7x, indicating that CTSH’s earnings are available at a much cheaper price relative to its stock price. Furthermore, CTSH’s price-to-book (P/B) ratio stands at a healthy 1.63x, while FICO reports a negative P/B of -11.82x, often suggesting aggressive share repurchases or a heavily liability-laden balance sheet.

The discounted cash flow (DCF) models further underscore CTSH’s compelling valuation, estimating a potential upside of +104.5% to a fair value of $105.52 from its current price of $51.608. In stark contrast, FICO’s DCF analysis suggests a significant downside of -51.2%, with a fair value estimate of $512.91 against its current price of $1051.275. This fundamental data indicates that for investors prioritizing value, CTSH offers a far more appealing entry point and greater intrinsic upside potential in the current market, making it a strong contender in the CTSH vs FICO fundamentals and valuation debate for 2026.

CTSH vs FICO growth comparison

In terms of growth, Fair Isaac Corporation (FICO) demonstrates superior momentum when compared to Cognizant Technology Solutions Corporation (CTSH). FICO reported an impressive year-over-year revenue growth of +15.9%, which significantly outpaces CTSH’s revenue growth of +7.0%. This indicates that FICO is expanding its top line at a much faster rate, reflecting stronger market demand for its core credit scoring and decision management solutions. The difference in growth rates is a key factor for investors looking for companies with robust expansion trajectories.

Beyond revenue growth, FICO’s exceptional profitability margins also indirectly speak to its growth quality and operational efficiency. While not a direct growth metric, FICO’s substantially higher net margin of 33.67% and EBITDA margin of 51.54% (compared to CTSH’s 10.41% net margin and 18.71% EBITDA margin) suggest that its growth is highly profitable and sustainable. This implies that FICO is not only growing faster but also converting a larger portion of its revenue into profit, signaling stronger underlying business momentum and a more attractive long-term outlook for growth-oriented investors evaluating CTSH vs FICO for 2026.

CTSH vs FICO profitability

When analyzing CTSH vs FICO profitability, Fair Isaac Corporation (FICO) clearly leads with significantly higher margins across the board. FICO’s net margin stands at an impressive 33.67%, demonstrating its ability to translate a substantial portion of its revenue into net income. This compares favorably against Cognizant Technology Solutions Corporation (CTSH), which has a net margin of 10.41%. Similarly, FICO’s EBITDA margin of 51.54% far exceeds CTSH’s 18.71%, indicating superior operational efficiency and cost management within FICO’s business model.

While Return on Equity (ROE) data is not available for either company, the Free Cash Flow (FCF) yield offers another perspective on cash generation. Here, CTSH shows a strong FCF yield of 10.1%, suggesting it generates a healthy amount of cash relative to its market capitalization. FICO, while highly profitable on a margin basis, has a lower FCF yield of 3.66%. Despite FICO’s lower FCF yield, its commanding net and EBITDA margins indicate a business that is inherently more efficient at extracting profit from its operations, generally generating more cash per dollar of revenue, which is a critical aspect when evaluating which company generates more cash.

Analyst ratings: CTSH vs FICO

In terms of analyst sentiment, Fair Isaac Corporation (FICO) is the overwhelming favorite among financial professionals, making it a stronger contender in the CTSH vs FICO analyst ratings and recommendations comparison. Out of 18 analysts covering FICO, a significant 83.3% recommend a “Buy,” leading to a consensus rating of “Buy” for the stock. Their average price target for FICO is $1593.56, suggesting a potential upside of +51.6% from its current price of $1051.275, reflecting strong confidence in its future performance and growth prospects.

Conversely, Cognizant Technology Solutions Corporation (CTSH) garners a more cautious outlook from analysts. Out of 51 analysts, only 41.2% have a “Buy” rating, resulting in a consensus of “Hold” for CTSH. While the analyst target of $83.33 for CTSH implies a higher potential upside of +61.5% from its current $51.608, the lower percentage of “Buy” ratings and the “Hold” consensus suggest that the market views FICO as a more compelling immediate investment based on current data. This divergence in analyst consensus highlights FICO’s strong perceived fundamentals and future potential.

Should I buy CTSH or FICO stock in 2026?

Deciding whether to buy CTSH or FICO stock in 2026 depends heavily on an investor’s specific priorities, be it growth, value, or income. For growth-oriented investors, FICO presents a compelling case with its robust revenue growth of +15.9% year-over-year, significantly outperforming CTSH’s +7.0%. FICO also boasts exceptional profitability margins, with a net margin of 33.67% and an EBITDA margin of 51.54%, indicating a highly efficient and scalable business model. The strong analyst consensus of “Buy” for FICO, with 83.3% of analysts recommending it, further reinforces its position as a favored growth stock.

On the other hand, value investors seeking a more attractive entry point and higher potential upside should consider CTSH. Cognizant Technology Solutions Corporation trades at a much lower P/E ratio of 11.04x compared to FICO’s 32.7x, making it a significantly cheaper stock relative to its earnings. Moreover, CTSH’s discounted cash flow (DCF) analysis projects a substantial upside of +104.5% to $105.52, alongside an analyst price target upside of +61.5% to $83.33. These metrics suggest that CTSH could be undervalued and offers considerable appreciation potential for those focused on CTSH vs FICO fundamentals and valuation.

For income-focused investors, the choice is straightforward, although neither stock offers a substantial dividend yield. CTSH provides a token dividend yield of 0.02%, while FICO currently offers no dividend (0%). Therefore, neither CTSH nor FICO are ideal choices for a strong dividend income stream. Ultimately, the question of which is a better investment, CTSH or FICO, comes down to whether an investor prioritizes FICO’s strong growth and profitability or CTSH’s compelling valuation and higher forecast appreciation. This is not investment advice; always conduct your own thorough research.

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FAQ: CTSH vs FICO