Cognizant Technology Solutions (NASDAQ:CTSH) Releases Earnings Results, Misses Expectations By $0.01 EPS

Cognizant Technology Solutions (NASDAQ:CTSH) issued its earnings results on Wednesday. The information technology service provider reported $1.37 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.01), Zacks reports. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%.The firm had revenue of $5.48 billion during the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter in the prior year, the company posted $1.31 earnings per share. Cognizant Technology Solutions’s quarterly revenue was up 4.5% compared to the same quarter last year. Cognizant Technology Solutions updated its FY 2026 guidance to 5.700-5.820 EPS.

Here are the key takeaways from Cognizant Technology Solutions’ conference call:

• Second-quarter revenue grew 4.1% year over year in constant currency to $5.5 billion, with financial services leading at nearly 12% growth and adjusted operating margin expanding to 16% excluding special items.
• Bookings momentum remained solid, with seven deals above $100 million in total contract value, including three new logos; trailing-12-month bookings rose 5% with a 1.3 book-to-bill ratio, while financial-services demand continued to strengthen.
• Cognizant reported expanding AI traction, including more than 8,000 AI engagements, over 40% of software development being AI-assisted, and plans to scale its frontier workforce to 5,000 certified engineers and 10,000 frontier business operators.
• The company reduced full-year revenue growth guidance to 4%-5.5% in constant currency from its prior outlook, citing persistently elevated macro uncertainty and pressured discretionary spending, although it expects large deals to ramp in the second half.
• Adjusted EPS guidance increased to $5.70-$5.82, and Cognizant returned $1.1 billion through second-quarter share repurchases while remaining on pace to return approximately $2.6 billion to shareholders this year.

Cognizant Technology Solutions Price Performance

CTSH stock traded down $0.30 during midday trading on Friday, reaching $53.60. The stock had a trading volume of 1,425,328 shares, compared to its average volume of 8,316,893. Cognizant Technology Solutions has a 52-week low of $37.08 and a 52-week high of $87.03. The company has a current ratio of 2.18, a quick ratio of 2.23 and a debt-to-equity ratio of 0.11. The company’s fifty day simple moving average is $47.16 and its 200 day simple moving average is $58.58. The company has a market cap of $25.40 billion, a price-to-earnings ratio of 11.56, a price-to-earnings-growth ratio of 1.22 and a beta of 0.87.

Cognizant Technology Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 18th will be paid a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, August 18th. Cognizant Technology Solutions’s dividend payout ratio is currently 28.39%.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors have recently modified their holdings of CTSH. JPL Wealth Management LLC acquired a new stake in Cognizant Technology Solutions in the 3rd quarter valued at about $25,000. Prosperity Bancshares Inc acquired a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at $29,000. WealthCollab LLC lifted its position in shares of Cognizant Technology Solutions by 37.1% during the 3rd quarter. WealthCollab LLC now owns 643 shares of the information technology service provider’s stock worth $43,000 after purchasing an additional 174 shares during the last quarter. Geneos Wealth Management Inc. grew 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 worth $44,000 after purchasing an additional 309 shares in the last quarter. Finally, Wilkerson Advisory Group LLC acquired a new stake in Cognizant Technology Solutions in the fourth quarter valued at $48,000. 92.44% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

CTSH has been the subject of a number of recent research reports. Weiss Ratings downgraded shares of Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, May 13th. Mizuho reduced their price target on Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Jefferies Financial Group lowered their price objective on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating for the company in a research note on Monday, May 4th. Wells Fargo & Company raised their price objective on Cognizant Technology Solutions from $61.00 to $67.00 and gave the stock an “overweight” rating in a research note on Thursday. Finally, Citigroup reissued a “neutral” rating and set a $60.00 price target (up from $45.00) on shares of Cognizant Technology Solutions in a research report on Thursday. Ten analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $63.17.

Cognizant Technology Solutions declared that its Board of Directors has authorized a share repurchase plan on Monday, May 18th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Key Stories Impacting Cognizant Technology Solutions

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

• Positive Sentiment: Management highlighted more than 8,000 AI engagements, growth in its AI platforms, large contract wins and a shift toward becoming an “AI builder.” The company is also expanding employee AI training through an OpenAI Codex hackathon involving 10,000 associates, reinforcing expectations that AI-led services can drive future growth. Cognizant Q2 Earnings Call Focuses on AI Builder Shift
• Positive Sentiment: Financial-services demand was strong, and analysts remain constructive on Cognizant’s margin expansion, AI-driven demand and financial-services growth. Wells Fargo raised its price target from $61 to $67 and maintained an Overweight rating, while Morgan Stanley also increased its target based on Cognizant’s differentiated AI strategy. Morgan Stanley Raises Cognizant Price Target
• Positive Sentiment: TD Cowen raised its price target from $47 to $54, while retaining a Hold rating. Cognizant’s valuation—approximately 11.6 times earnings—may appeal to investors seeking exposure to enterprise technology and AI at a comparatively modest multiple. TD Cowen Raises Cognizant Price Target
• Neutral Sentiment: Cognizant reported quarterly EPS of $1.37 versus the $1.38 consensus estimate, while revenue of $5.48 billion was broadly in line with expectations and increased 4.5% year over year. Management’s full-year EPS guidance is $5.70–$5.82, but commentary about reduced sales guidance limits the strength of the results. Cognizant Q2 Earnings Results
• Neutral Sentiment: Cognizant declared a quarterly dividend of $0.33 per share, payable August 25 to shareholders of record August 18, representing an indicated yield of roughly 2.4%. Cognizant Dividend Announcement
• Negative Sentiment: The earnings miss, higher interest costs and cautious sales outlook could pressure the shares despite the revenue growth and upbeat AI commentary. Investors are likely weighing whether AI bookings will translate into accelerating revenue quickly enough to offset slower near-term growth. Cognizant Q2 2026 Earnings Call Summary

About Cognizant Technology Solutions

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.