What Gave IBM Stock Its Edge Over Cognizant?

What Gave IBM Stock Its Edge Over Cognizant?

By Trefis Team
Publication Date: 2026-10-20 19:43:00

Image from Pixabay

Two IT consulting and services companies grew their sales at about the same pace over the last three years. Over the five years to October 2026, though, one stock climbed 110.0% while the other dropped 8.8%. The stock that rose belongs to International Business Machines (IBM), and the one that fell belongs to Cognizant Technology Solutions (CTSH). Where do you think that gap came from: faster sales, bigger profits, or investors paying more?

Who Has Beaten Cognizant Over Five Years?

Cognizant has held up better than most of its industry. Over the five years to October 2026, its stock performed better than 55.6% of the 27 industry peers used for comparison.

Yet two industry peers outpaced it by a wide margin despite posting average sales growth within 4 points of Cognizant’s over the last three years. IBM’s stock finished 118.8 points ahead of Cognizant’s over those five years.

The other company, Adeia…