Home > Comparison > Technology > CTSH vs BBAI
The strategic rivalry between Cognizant Technology Solutions Corporation and BigBear.ai Holdings, Inc. shapes the evolving landscape of the technology sector. Cognizant operates as a capital-intensive, global IT services powerhouse with diversified consulting and outsourcing capabilities. In contrast, BigBear.ai focuses on high-margin AI-driven analytics and cybersecurity solutions with a leaner structure. This analysis pits scale against innovation to assess which company offers superior risk-adjusted returns for a balanced technology portfolio.
Table of contents
Companies Overview
Cognizant and BigBear.ai shape distinct niches within the competitive IT services landscape.
Cognizant Technology Solutions Corporation: Global IT Services Leader
Cognizant dominates as a professional services provider specializing in consulting, technology, and outsourcing. Its core revenue stems from segments like Financial Services, Healthcare, and Communications, delivering AI, robotic automation, and digital transformation solutions. In 2026, Cognizant sharpens focus on consumer-driven digital health and omni-channel patient experiences to maintain its broad industry footprint.
BigBear.ai Holdings, Inc.: AI-Driven Decision Support Innovator
BigBear.ai carves out a niche in artificial intelligence and machine learning for decision support. It generates revenue through Cyber & Engineering and Analytics segments, offering cybersecurity, cloud engineering, and predictive analytics. The company’s 2026 strategy centers on enhancing real-time data synthesis to empower clients’ operational agility and strategic planning.
Strategic Collision: Similarities & Divergences
Both firms thrive in IT services but diverge sharply: Cognizant operates a broad, multi-industry consulting model; BigBear.ai pursues a specialized AI-centric approach. They primarily battle in data-driven transformation but target different client scales and needs. Cognizant’s scale and diversification contrast with BigBear.ai’s agility and innovation focus, defining their unique risk and growth profiles.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Cognizant Technology Solutions Corporation (CTSH) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Revenue | 21.1B | 158M |
| Cost of Revenue | 14.0B | 113M |
| Operating Expenses | 3.59B | 179M |
| Gross Profit | 7.12B | 45.2M |
| EBITDA | 4.17B | -258M |
| EBIT | 3.62B | -270M |
| Interest Expense | 37M | 26M |
| Net Income | 2.23B | -296M |
| EPS | 4.56 | -1.27 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals the true efficiency and profitability of each company’s business engine through recent financial performance.
Cognizant Technology Solutions Corporation (CTSH) Analysis
CTSH shows steady revenue growth, rising from $18.5B in 2021 to $21.1B in 2025. Net income remains solid, with a slight dip to $2.23B in 2025. Gross margin holds firm at 33.7%, while net margin at 10.6% reflects consistent profitability. The company’s 2025 results demonstrate strong operating leverage and margin improvement.
BigBear.ai Holdings, Inc. (BBAI) Analysis
BBAI’s revenue increased from $91M in 2020 to $158M in 2024 but remains small-scale. The company struggles with persistent net losses, reaching -$296M in 2024. Gross margin at 28.6% is decent but overshadowed by a deeply negative net margin of -186.8%. Operating losses expanded sharply, signaling ongoing challenges in cost control and profitability.
Margin Power vs. Revenue Scale
CTSH outperforms BBAI with robust margins and consistent net income growth despite moderate revenue expansion. BBAI shows top-line gains but suffers from unsustainable operating losses and negative profitability. For investors, CTSH’s profile offers dependable earnings and margin discipline, while BBAI remains a high-risk growth story without current earnings efficiency.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Cognizant Technology Solutions Corporation (CTSH) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| ROE | 14.85% | 79.58% |
| ROIC | 12.31% | -93.42% |
| P/E | 17.90 | -3.52 |
| P/B | 2.66 | -279.90 |
| Current Ratio | 2.34 | 0.46 |
| Quick Ratio | 2.34 | 0.46 |
| D/E (Debt-to-Equity) | 0.10 | -39.42 |
| Debt-to-Assets | 7.61% | 42.59% |
| Interest Coverage | 95.38 | -5.20 |
| Asset Turnover | 1.02 | 0.46 |
| Fixed Asset Turnover | 14.02 | 14.61 |
| Payout Ratio | 27.35% | 0% |
| Dividend Yield | 1.53% | 0% |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, exposing hidden risks and operational strengths critical for informed investing.
Cognizant Technology Solutions Corporation (CTSH)
CTSH shows solid profitability with a 14.85% ROE and a favorable 10.56% net margin, indicating efficient core operations. Its valuation at a neutral 17.9 P/E and 2.66 P/B suggests fair pricing relative to peers. The company returns value via a 1.53% dividend yield, balancing shareholder rewards with stable growth.
BigBear.ai Holdings, Inc. (BBAI)
BBAI reflects highly volatile metrics with a distorted 7,957% ROE but a deeply negative net margin of -186.78%, signaling operational losses. Its negative P/E and P/B ratios imply valuation stress. The absence of dividends and unfavorable cash flow ratios highlight ongoing reinvestment in R&D, but liquidity and profitability remain weak.
Mature Stability vs. Early-Stage Struggles
CTSH offers a balanced mix of operational efficiency and reasonable valuation, minimizing risk for income-focused investors. BBAI’s profile suits those willing to tolerate high volatility and losses, betting on disruptive growth. Investors must align choices with their risk tolerance and investment horizon.
Which one offers the Superior Shareholder Reward?
I compare Cognizant Technology Solutions Corporation (CTSH) and BigBear.ai Holdings, Inc. (BBAI) on their shareholder reward strategies. CTSH pays a steady dividend with a 1.53% yield and a sustainable payout ratio near 27%. Its free cash flow comfortably covers dividends at over 3x. CTSH also executes disciplined buybacks, boosting total return. Conversely, BBAI pays no dividends and struggles with negative margins and cash flow deficits. It reinvests heavily, but its high debt and poor solvency raise sustainability concerns. Without buybacks or dividends, BBAI’s shareholder reward relies on future growth, which remains uncertain. I conclude CTSH offers the superior total return profile in 2026 with a balanced, sustainable distribution strategy and solid capital allocation.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Cognizant Technology Solutions Corporation and BigBear.ai Holdings, Inc.:
Cognizant dominates across discounted cash flow, ROE, and ROA, showcasing a balanced and efficient operational model. BigBear.ai scores weakly in profitability and valuation metrics but matches Cognizant on debt-to-equity. Cognizant’s profile is more balanced, while BigBear.ai relies on moderate leverage without strong earnings efficiency.
Bankruptcy Risk: Solvency Showdown
Cognizant’s Altman Z-Score of 6.85 places it firmly in the safe zone, signaling robust long-term solvency. BigBear.ai’s 1.83 score hovers in the grey zone, indicating moderate bankruptcy risk and financial vulnerability in this cycle:
Financial Health: Quality of Operations
Cognizant’s Piotroski F-Score of 7 reflects strong internal financial health and operational quality. BigBear.ai’s score of 3 flags several red flags in profitability and efficiency, signaling weak fundamentals relative to Cognizant:
How are the two companies positioned?
This section dissects the operational DNA of Cognizant and BigBear.ai by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats to reveal which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This comparison breaks down how Cognizant Technology Solutions Corporation and BigBear.ai Holdings, Inc. diversify their revenue streams and where their main sector strengths lie:
Cognizant presents a highly diversified revenue base with four major segments: Healthcare leads at $5.93B, followed closely by Financial Services at $5.75B, Products and Resources at $4.78B, and Communication, Media and Technology at $3.27B. BigBear.ai, by contrast, relies heavily on a single “Reportable Segment” generating $158M, revealing concentration risk. Cognizant’s balanced portfolio anchors it against sector-specific downturns, while BigBear.ai’s narrow focus may face volatility but could benefit from niche market specialization.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Cognizant Technology Solutions Corporation and BigBear.ai Holdings, Inc.:
Cognizant Strengths
- Diversified revenue across four large segments
- Favorable net margin at 10.56%
- Strong liquidity ratios (current and quick at 2.34)
- Low debt-to-equity of 0.1
- High interest coverage at 97.92
- Global presence with significant North America and Europe sales
BigBear.ai Strengths
- Favorable ROE at 7957.65%
- Positive P/E and P/B ratios despite losses
- Fixed asset turnover strong at 14.61
- Some market presence in analytics and cyber segments
Cognizant Weaknesses
- Neutral ROE at 14.85% versus sector benchmarks
- Moderate dividend yield at 1.53%
- Neutral valuation multiples (PE 17.9, PB 2.66)
- No segment shows dominant market share
BigBear.ai Weaknesses
- Negative net margin at -186.78%
- Negative ROIC at -93.42%
- High WACC at 18.34% indicating costly capital
- Poor liquidity (current and quick ratio 0.46)
- Negative interest coverage at -10.53
- High debt-to-assets at 42.59%
Cognizant’s strengths lie in diversified revenues and robust financial health, which support steady operations and resilience. BigBear.ai shows potential in asset efficiency and equity returns but faces significant profitability and liquidity challenges. Both must address these weaknesses for sustainable growth.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competitive erosion in dynamic markets:
Cognizant Technology Solutions Corporation: Intangible Asset Moat
Cognizant leverages deep consulting expertise and trusted client relationships as intangible assets. This moat supports stable 17% EBIT margins and a 4.3% ROIC premium over WACC. Digital transformation and AI services could deepen this advantage in 2026.
BigBear.ai Holdings, Inc.: Emerging Technology Moat
BigBear.ai’s moat hinges on niche AI and analytics capabilities, unlike Cognizant’s broad consulting base. However, it suffers negative ROIC and steep margin erosion, signaling fragile defensibility. Expansion into cybersecurity and cloud analytics offers growth potential but risks remain high.
Moat Strength: Intangible Assets vs. Emerging AI Edge
Cognizant holds a wider, more durable moat with consistent value creation despite slight ROIC decline. BigBear.ai’s moat is narrower and unstable, making Cognizant better equipped to defend market share through 2026 and beyond.
Which stock offers better returns?
The past year shows Cognizant’s steady price acceleration contrasted with BigBear.ai’s sharp rise followed by recent deceleration.
Trend Comparison
Cognizant Technology Solutions Corporation’s stock rose 2.32% over the past 12 months, marking a bullish trend with accelerating momentum and notable volatility (std dev 5.77). Its price ranged from 64.26 to a high of 90.7.
BigBear.ai Holdings, Inc. gained 93.44% over the same period, a strong bullish trend despite recent deceleration. Its price fluctuated between 1.21 and 9.02, with lower volatility (std dev 2.19).
BigBear.ai delivered significantly higher overall returns, but Cognizant’s acceleration suggests more stable upward momentum in the latest months.
Target Prices
Analysts present a moderate upside consensus for both Cognizant Technology Solutions and BigBear.ai.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Cognizant Technology Solutions Corporation | 82 | 107 | 93.2 |
| BigBear.ai Holdings, Inc. | 6 | 6 | 6 |
Cognizant’s consensus target price of 93.2 suggests a roughly 21% upside from its current 77.08 price. BigBear.ai’s steady target of 6 implies a 27% potential gain from the current 4.72 level.
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How do institutions grade them?
Cognizant Technology Solutions Corporation Grades
Here are the recent grades assigned by established financial institutions for Cognizant Technology Solutions Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | Maintain | Hold | 2026-02-05 |
| Morgan Stanley | Maintain | Equal Weight | 2026-02-05 |
| RBC Capital | Maintain | Sector Perform | 2026-02-05 |
| Guggenheim | Maintain | Buy | 2026-01-28 |
| Citigroup | Maintain | Neutral | 2026-01-22 |
| Wells Fargo | Maintain | Overweight | 2026-01-14 |
| TD Cowen | Maintain | Hold | 2026-01-09 |
| UBS | Maintain | Neutral | 2025-12-08 |
| William Blair | Upgrade | Outperform | 2025-11-21 |
| UBS | Maintain | Neutral | 2025-10-30 |
BigBear.ai Holdings, Inc. Grades
Below are the recent grades from recognized analysts for BigBear.ai Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Downgrade | Neutral | 2026-01-07 |
| HC Wainwright & Co. | Maintain | Buy | 2025-11-11 |
| HC Wainwright & Co. | Maintain | Buy | 2025-08-12 |
| HC Wainwright & Co. | Maintain | Buy | 2025-07-01 |
| HC Wainwright & Co. | Maintain | Buy | 2025-03-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-07 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-30 |
| HC Wainwright & Co. | Maintain | Buy | 2024-11-06 |
| HC Wainwright & Co. | Maintain | Buy | 2024-10-15 |
| Cantor Fitzgerald | Maintain | Overweight | 2024-08-21 |
Which company has the best grades?
Cognizant has a wider range of grades, including Buy and Outperform ratings, indicating mixed but generally positive institutional views. BigBear.ai mostly receives Buy ratings but faced a recent downgrade to Neutral. Investors might interpret Cognizant’s diverse grades as signaling steadier confidence, while BigBear.ai’s downgrade suggests potential caution.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Cognizant Technology Solutions Corporation
- Established player with diversified client base facing intense competition in IT services.
BigBear.ai Holdings, Inc.
- Smaller, niche AI firm competing in a volatile and rapidly evolving technology segment.
2. Capital Structure & Debt
Cognizant Technology Solutions Corporation
- Low debt-to-equity ratio of 0.1 indicates strong balance sheet and financial stability.
BigBear.ai Holdings, Inc.
- Higher debt ratio (42.6%) with weak interest coverage signals elevated financial risk.
3. Stock Volatility
Cognizant Technology Solutions Corporation
- Beta near 1 (0.957) suggests stock moves in line with the market, moderate volatility.
BigBear.ai Holdings, Inc.
- Beta of 3.211 indicates very high stock price volatility, posing risk for risk-averse investors.
4. Regulatory & Legal
Cognizant Technology Solutions Corporation
- Operates globally with exposure to complex regulations but benefits from established compliance frameworks.
BigBear.ai Holdings, Inc.
- Emerging company with potential regulatory scrutiny in AI and cybersecurity fields.
5. Supply Chain & Operations
Cognizant Technology Solutions Corporation
- Large scale operations with diversified supply chain; operational risks mitigated by scale and expertise.
BigBear.ai Holdings, Inc.
- Smaller scale and reliance on specialized talent may create operational bottlenecks.
6. ESG & Climate Transition
Cognizant Technology Solutions Corporation
- Increasing focus on ESG initiatives aligns with investor expectations and regulatory trends.
BigBear.ai Holdings, Inc.
- ESG practices less mature, potentially lagging peers in sustainability reporting.
7. Geopolitical Exposure
Cognizant Technology Solutions Corporation
- Global footprint exposes it to geopolitical risks but also diversifies market risk.
BigBear.ai Holdings, Inc.
- Primarily US-focused, with limited geographic diversification but less exposure to global tensions.
Which company shows a better risk-adjusted profile?
Cognizant faces moderate market and regulatory risks but boasts strong financial health, low debt, and stable operations. BigBear.ai’s most impactful risk is its precarious capital structure and extreme stock volatility. Cognizant’s Altman Z-score (6.85, safe zone) and solid Piotroski score (7, strong) contrast sharply with BigBear.ai’s precarious Z-score (1.83, grey zone) and weak Piotroski (3). This disparity underscores Cognizant’s superior risk-adjusted profile, making it the safer choice amid 2026 market uncertainties.
Final Verdict: Which stock to choose?
Cognizant Technology Solutions Corporation (CTSH) demonstrates a robust superpower in delivering consistent cash flow and efficient capital use. Its slight decline in profitability signals a point of vigilance but does not overshadow its strong financial moat. CTSH suits portfolios seeking steady, long-term growth with moderate risk.
BigBear.ai Holdings, Inc. (BBAI) leverages a strategic moat rooted in its emerging AI technology platform and growth potential. However, its financial instability and value destruction highlight significant risk compared to CTSH. BBAI might appeal to investors with a high tolerance for volatility and a focus on speculative, disruptive growth.
If you prioritize reliable value creation and financial stability, CTSH is the compelling choice due to its proven moat and cash generation. However, if you seek high-risk, high-reward opportunities in AI innovation, BBAI offers potential upside despite its current financial headwinds. Each scenario demands careful risk management aligned with your investment profile.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Cognizant Technology Solutions Corporation and BigBear.ai Holdings, Inc. to enhance your investment decisions:
