TD Cowen Issues Positive Forecast for Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price

Cognizant Technology Solutions (NASDAQ:CTSH) had its price target lifted by TD Cowen from $47.00 to $54.00 in a report issued on Thursday,Benzinga reports. TD Cowen currently has a hold rating on the information technology service provider’s stock.

A number of other research firms also recently weighed in on CTSH. Morgan Stanley reissued a “negative” rating and set a $51.00 target price (up from $44.00) on shares of Cognizant Technology Solutions in a research report on Thursday. Nomura dropped their price objective on Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating on the stock in a research note on Wednesday, July 1st. Guggenheim reissued a “buy” rating and issued a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a research report on Monday. Mizuho dropped 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. Finally, Truist Financial began coverage on Cognizant Technology Solutions in a research note on Monday, June 1st. They set a “hold” rating and a $66.00 price target for the company. Ten research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $63.17.

Cognizant Technology Solutions Stock Down 3.7%

CTSH stock opened at $53.90 on Thursday. Cognizant Technology Solutions has a 1-year low of $37.08 and a 1-year high of $87.03. The stock has a market cap of $25.54 billion, a P/E ratio of 11.59, a P/E/G ratio of 1.22 and a beta of 0.87. The stock’s fifty day simple moving average is $47.16 and its two-hundred day simple moving average is $58.58. The company has a current ratio of 2.18, a quick ratio of 2.23 and a debt-to-equity ratio of 0.11.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). The business had revenue of $5.48 billion for the quarter, compared to the consensus estimate of $5.48 billion. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%.The company’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.31 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Analysts expect that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 18th will be paid a $0.33 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $1.32 annualized dividend and a yield of 2.4%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 28.70%.

Cognizant Technology Solutions declared that its board has authorized a share buyback plan on Monday, May 18th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the information technology service provider to buy up to 9% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently modified their holdings of CTSH. Tema ETFs LLC grew its stake in Cognizant Technology Solutions by 23.0% during the second quarter. Tema ETFs LLC now owns 10,528 shares of the information technology service provider’s stock valued at $408,000 after acquiring an additional 1,968 shares in the last quarter. Hennion & Walsh Asset Management Inc. boosted its holdings in Cognizant Technology Solutions by 9.8% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 5,600 shares of the information technology service provider’s stock valued at $217,000 after purchasing an additional 498 shares during the period. Polianta Ltd grew its position in shares of Cognizant Technology Solutions by 82.4% during the 2nd quarter. Polianta Ltd now owns 44,700 shares of the information technology service provider’s stock valued at $1,731,000 after purchasing an additional 20,200 shares in the last quarter. Chesley Taft & Associates LLC grew its position in shares of Cognizant Technology Solutions by 9.1% during the 2nd quarter. Chesley Taft & Associates LLC now owns 30,433 shares of the information technology service provider’s stock valued at $1,179,000 after purchasing an additional 2,542 shares in the last quarter. Finally, Czech National Bank increased its holdings in shares of Cognizant Technology Solutions by 3.6% in the second quarter. Czech National Bank now owns 134,881 shares of the information technology service provider’s stock worth $5,224,000 after purchasing an additional 4,633 shares during the period. 92.44% of the stock is owned by hedge funds and other institutional investors.

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 and a shift toward becoming an “AI builder.” The company is also organizing an OpenAI Codex hackathon involving 10,000 associates in India, supporting its strategy to scale AI-led services. Cognizant Q2 Earnings Call Focuses on AI Builder Shift
• Positive Sentiment: Second-quarter revenue increased 4.5% year over year to approximately $5.5 billion, led by 12% growth in Financial Services. Operating margins expanded, bookings rose 5% to $29.1 billion, and adjusted full-year EPS guidance was raised to $5.70-$5.82. Cognizant also repurchased about $1.1 billion of stock. Cognizant Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst sentiment provided some support: Wells Fargo raised its price target to $67 and assigned an overweight rating, while Morgan Stanley increased its target based on Cognizant’s differentiated AI strategy. Morgan Stanley raises Cognizant price target
• Neutral Sentiment: Cognizant declared a quarterly dividend of $0.33 per share, with payment scheduled for August 25 for shareholders of record on August 18. Cognizant dividend announcement
• Negative Sentiment: Adjusted EPS of $1.37 narrowly missed the $1.38 consensus estimate. Higher interest costs contributed to earnings pressure despite revenue meeting expectations. Cognizant Q2 earnings miss
• Negative Sentiment: The company’s third-quarter revenue outlook of $5.6-$5.7 billion was below Wall Street expectations, reflecting cautious client spending on discretionary IT projects. Full-year revenue growth guidance was revised to 4.0%-5.5%, reinforcing concerns that AI investment is benefiting infrastructure spending more quickly than software and services demand. Cognizant forecasts weak quarterly revenue

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.