Cognizant, Capgemini slide into sub-revenue valuation territory

Bengaluru: A tale of two companies: both Cognizant and Capgemini are now trading at market capitalisations below their annual revenue. It is a striking signal of investor caution toward businesses operating on mid-teen margins, a characteristic of the IT services sector that offers little cushion when growth slows.

Cognizant’s market capitalisation stood at $22.3 billion as of Friday, down 22% over the past month and 44% over the past year. That places it near the lower end of the company’s FY26 revenue guidance of $22.1 billion to $22.6 billion. Its full-year outlook factors in recently completed acquisitions, with 3Cloud and Astreya expected to contribute roughly 150 basis points to revenue growth. Capgemini tells a similar story.