Cognizant Technology Solutions (NASDAQ:CTSH) Releases FY 2026 Earnings Guidance

Cognizant Technology Solutions (NASDAQ:CTSH) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 5.700-5.820 for the period, compared to the consensus earnings per share estimate of 5.690. The company issued revenue guidance of $22.0 billion-$22.4 billion, compared to the consensus revenue estimate of $22.3 billion. Cognizant Technology Solutions also updated its Q3 2026 guidance to EPS.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on CTSH shares. Royal Bank Of Canada set a $55.00 target price on Cognizant Technology Solutions in a report on Friday. Evercore dropped their price target on Cognizant Technology Solutions from $100.00 to $70.00 in a research note on Thursday, April 30th. Wells Fargo & Company cut their price objective on Cognizant Technology Solutions from $83.00 to $61.00 and set an “overweight” rating on the stock in a report on Friday, July 10th. Weiss Ratings lowered Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 13th. Finally, Guggenheim reiterated a “buy” rating and set a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a report on Monday. Ten equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $61.35.

Cognizant Technology Solutions Stock Performance

NASDAQ:CTSH opened at $50.31 on Wednesday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $23.84 billion, a price-to-earnings ratio of 10.94, a PEG ratio of 1.03 and a beta of 0.87. The firm’s fifty day simple moving average is $47.04 and its 200 day simple moving average is $59.01. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The firm had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same period in the prior year, the firm earned $1.23 EPS. The firm’s quarterly revenue was up 5.8% compared to the same quarter last year. As a group, equities research analysts expect that Cognizant Technology Solutions will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions declared that its Board of Directors has approved a share buyback program on Monday, May 18th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the information technology service provider to buy up to 9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Trending Headlines about Cognizant Technology Solutions

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: Expanded Anthropic partnership boosts AI growth expectations. Cognizant became one of Anthropic’s Global Premier Partners and will embed Claude across its industry platforms, engineering tools and client projects. The companies are targeting broader production use of AI in sectors including manufacturing, life sciences and insurance, supporting expectations for new consulting and implementation revenue. Cognizant and Anthropic expand partnership article
• Positive Sentiment: New EMEA AI unit aims to convert pilots into recurring enterprise work. The dedicated organization will combine advisory, engineering and delivery capabilities to help European, Middle Eastern and African clients build and operate agentic AI systems. Its platform-independent approach could broaden Cognizant’s addressable market and reinforce its AI Builder strategy. Cognizant launches EMEA AI unit article
• Positive Sentiment: Five-year Andover Companies contract adds evidence of commercial traction. The insurance group selected Cognizant to modernize core and portal systems, unify data and prepare for responsible AI use in underwriting and claims. The long-term engagement provides potential revenue visibility and a reference customer for Cognizant’s insurance and AI capabilities. Andover Companies selects Cognizant article
• Neutral Sentiment: Upcoming quarterly results are the next major catalyst. Analysts expect Cognizant’s results to benefit from bookings, AI demand and acquisition contributions, but investors will look for confirmation that those factors are translating into revenue growth and updated guidance. Cognizant Q2 earnings preview
• Negative Sentiment: Macro and discretionary-spending risks remain. Weak client demand in discretionary areas and broader economic uncertainty could restrain traditional IT-services spending, potentially offsetting some of the expected AI-driven growth.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of CTSH. JPL Wealth Management LLC acquired a new position in Cognizant Technology Solutions during the 3rd quarter worth approximately $25,000. Prosperity Bancshares Inc acquired a new stake in Cognizant Technology Solutions in the fourth quarter valued at approximately $29,000. WealthCollab LLC grew its position in Cognizant Technology Solutions by 37.1% in the third quarter. WealthCollab LLC now owns 643 shares of the information technology service provider’s stock valued at $43,000 after acquiring an additional 174 shares in the last quarter. Geneos Wealth Management Inc. raised its stake in shares of Cognizant Technology Solutions by 118.8% during the first quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock valued at $44,000 after purchasing an additional 309 shares during the period. Finally, Wilkerson Advisory Group LLC purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $48,000. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions (NASDAQ: CTSH) is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.