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CTSH vs JKHY
Which Stock Would AI Choose? Cognizant Technology Solutions (CTSH) vs. Jack Henry & Associates (JKHY) Stock Comparison
Key Takeaways
- CTSH reported Q2 2026 revenue of $5.5 billion, up 4.5% year-over-year, with adjusted operating margin expansion and raised full-year guidance.
- JKHY released fiscal 2026 fourth-quarter deconversion revenue results on August 11, ahead of its earnings call scheduled for August 19.
- Over the past month, CTSH shares posted gains exceeding 36%, significantly outpacing JKHY’s more modest advance.
- CTSH trades at a lower trailing price-to-earnings (P/E) ratio of approximately 12.2 compared with JKHY’s 21.4, reflecting differing valuation profiles.
- Both companies operate in the information technology services sector, with CTSH emphasizing broad digital transformation and JKHY focused on financial services technology solutions.
- Year-to-date performance shows declines for both stocks, though CTSH exhibits greater recent volatility and recovery momentum.
Introduction
Investors and traders often compare CTSH and JKHY because both companies provide technology services to enterprise clients, particularly in financial services, yet they differ in scale, growth drivers, and market positioning. This analysis examines recent performance, business fundamentals, and market sentiment to help professional and individual investors evaluate relative opportunities within the information technology services sector. The comparison draws on verifiable data from earnings releases and market activity over recent weeks, offering context for those assessing sector exposure or portfolio diversification.
CTSH Overview and Recent Performance
Cognizant Technology Solutions Corporation delivers digital transformation, consulting, and technology services across multiple industries, with notable strength in financial services and healthcare. In recent market activity, the company posted second-quarter 2026 results showing revenue of $5.5 billion, representing 4.5% year-over-year growth, alongside adjusted earnings per share of $1.37. Management raised constant-currency revenue guidance for the full year and highlighted 12% growth in the financial services segment. Share repurchases totaling $1.1 billion supported shareholder returns. Following the earnings release, CTSH shares experienced a sharp recovery, climbing more than 36% over the subsequent month amid improved sentiment around AI initiatives and operational metrics. Year-to-date, however, the stock remains lower, reflecting broader market pressures earlier in the period.
JKHY Overview and Recent Performance
Jack Henry & Associates, Inc. provides technology solutions and data processing services primarily to community and regional financial institutions. The company reported fiscal 2026 fourth-quarter deconversion revenue of $9.3 million on August 11, contributing to a full-year total of $42.8 million. Its upcoming earnings call on August 19 is expected to detail overall quarterly results, with analysts forecasting revenue near $628 million. In recent weeks, JKHY shares have traded with relatively modest movements, showing a gain of approximately 3% over the past month while remaining down year-to-date. The stock maintains a stable profile consistent with its focus on recurring revenue streams in the banking technology space, though it has faced headwinds from slower digital revenue growth in prior periods.
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Head-to-Head Comparison
CTSH operates at a larger scale with a market capitalization near $26.5 billion, compared with JKHY’s approximately $10.9 billion. Business models differ markedly: CTSH pursues broad digital transformation projects across industries, while JKHY concentrates on specialized financial technology infrastructure with high recurring revenue characteristics. Recent momentum favors CTSH, driven by earnings beats and AI-related catalysts, whereas JKHY exhibits steadier but less volatile price action ahead of its earnings release. Valuation metrics show CTSH at a trailing P/E ratio of about 12.2 versus JKHY’s 21.4, presenting a contrast in perceived growth premiums. Sector exposure overlaps in financial services, yet CTSH carries greater sensitivity to global IT spending cycles, while JKHY faces deconversion and integration risks specific to banking clients. Market sentiment has shifted more positively toward CTSH in recent weeks on the back of guidance upgrades.
Tickeron AI Verdict
Based on observable factors including stronger recent trend consistency, earnings-driven catalysts, and relative valuation positioning, Tickeron’s AI models currently assign a modestly higher probability of favorable near-term performance to CTSH over JKHY. This assessment reflects CTSH’s demonstrated recovery momentum and margin expansion, balanced against JKHY’s more stable recurring-revenue profile and pending earnings clarity. Outcomes remain subject to broader market conditions and company-specific developments.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CTSH is a StrongBuy and JKHY is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CTSH’s FA Score shows that 1 FA rating(s) are green whileJKHY’s FA Score has 2 green FA rating(s).
- CTSH’s FA Score: 1 green, 4 red.
- JKHY’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CTSH’s TA Score shows that 3 TA indicator(s) are bullish while JKHY’s TA Score has 4 bullish TA indicator(s).
- CTSH’s TA Score: 3 bullish, 4 bearish.
- JKHY’s TA Score: 4 bullish, 4 bearish.
Price Growth
CTSH (@Information Technology Services) experienced а +1.38% price change this week, while JKHY (@Information Technology Services) price change was -0.75% for the same time period.
The average weekly price growth across all stocks in the @Information Technology Services industry was -4.73%. For the same industry, the average monthly price growth was +1.57%, and the average quarterly price growth was +17.07%.
Reported Earning Dates
CTSH is expected to report earnings on Nov 04, 2026.
JKHY is expected to report earnings on Nov 10, 2026.
Industries' Descriptions
@Information Technology Services (-4.73% weekly)The industry, whose total market cap runs into trillions, makes hardware/software that allows data to be stored, retrieved, transmitted, and manipulated on computers. With the ever-increasing relevance of data, the information technology (IT) industry has gained momentous growth over the years, and continues to thrive on innovation. Some of the behemoths in the industry are International Business Machines Corporation, Accenture, and VMware, Inc.
| CTSH | JKHY | CTSH / JKHY | |
| Capitalization | 29.1B | 11.8B | 247% |
| EBITDA | 4.1B | 889M | 461% |
| Gain YTD | -20.710 | -6.981 | 297% |
| P/E Ratio | 13.87 | 24.13 | 57% |
| Revenue | 21.6B | 2.52B | 859% |
| Total Cash | N/A | 20.6M | - |
| Total Debt | 2.09B | 90M | 2,327% |
CTSH | JKHY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 37 | 80 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 11 Undervalued | 13 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 95 | |
SMR RATING 1..100 | 57 | 39 | |
PRICE GROWTH RATING 1..100 | 45 | 29 | |
P/E GROWTH RATING 1..100 | 51 | 54 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CTSH's Valuation (11) in the Information Technology Services industry is in the same range as JKHY (13). This means that CTSH’s stock grew similarly to JKHY’s over the last 12 months.
JKHY's Profit vs Risk Rating (95) in the Information Technology Services industry is in the same range as CTSH (100). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
JKHY's SMR Rating (39) in the Information Technology Services industry is in the same range as CTSH (57). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
JKHY's Price Growth Rating (29) in the Information Technology Services industry is in the same range as CTSH (45). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
CTSH's P/E Growth Rating (51) in the Information Technology Services industry is in the same range as JKHY (54). This means that CTSH’s stock grew similarly to JKHY’s over the last 12 months.
| CTSH | JKHY | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 45% | 3 days ago 48% |
| Stochastic ODDS (%) | 1 day ago 52% | 3 days ago 55% |
| Momentum ODDS (%) | N/A | 3 days ago 49% |
| MACD ODDS (%) | 1 day ago 48% | 3 days ago 51% |
| TrendWeek ODDS (%) | 1 day ago 56% | 3 days ago 54% |
| TrendMonth ODDS (%) | 1 day ago 51% | 3 days ago 50% |
| Advances ODDS (%) | 1 day ago 54% | 11 days ago 50% |
| Declines ODDS (%) | N/A | 9 days ago 57% |
| BollingerBands ODDS (%) | 1 day ago 40% | 3 days ago 70% |
| Aroon ODDS (%) | 1 day ago 52% | 3 days ago 45% |
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