Cognizant Technology Solutions (NASDAQ:CTSH) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Cognizant Technology Solutions (NASDAQ:CTSH) issued its earnings results on Thursday. The information technology service provider reported $1.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.46 by $0.03, FiscalAI reports. The company had revenue of $5.66 billion during the quarter, compared to analyst estimates of $5.64 billion. Cognizant Technology Solutions had a net margin of 11.75% and a return on equity of 17.72%. The company’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same quarter last year, the business posted $1.39 EPS.

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

• Strong third-quarter execution: Revenue grew 4.8% year over year in constant currency to $5.7 billion, adjusted operating margin reached 16.3%, and adjusted EPS rose 7% to $1.49. Free cash flow was $925 million, while Cognizant returned more than $250 million through share repurchases during the quarter.
• Financial services and AI-related businesses remained key growth drivers. Financial services grew 12% in constant currency for a third consecutive quarter, while AI-tailwind areas representing roughly 40% of the business are growing at approximately two to three times the rate of total organic services revenue.
• Bookings quality improved, with new and expanded business reaching 60% of trailing-12-month bookings, up more than 10 percentage points year over year. Trailing-12-month bookings grew 4%, book-to-bill was 1.3, and large-deal TCV increased 9%.
• Cognizant is expanding its AI Builder strategy across modernization, agentic business operations, secure AI, and data-center and workplace services. Management cited more than 8,500 AI engagements, over 50% AI-assisted software development, and platform opportunities intended to capture more value from enterprise AI deployments.
• Guidance was reduced because macro uncertainty is weighing on discretionary spending, particularly in healthcare and consumer-facing sectors. Full-year constant-currency revenue growth is now expected at 4.0%-4.4%, versus 4.0%-5.5% previously, while fourth-quarter growth is guided to 3.2%-4.7%; higher furloughs and lower third-party resale contributions are also expected.

Cognizant Technology Solutions Stock Up 4.1%

CTSH opened at $65.11 on Friday. The company has a quick ratio of 2.18, a current ratio of 2.22 and a debt-to-equity ratio of 0.11. The stock has a market cap of $29.33 billion, a PE ratio of 11.88, a P/E/G ratio of 1.17 and a beta of 0.86. The business’s fifty day simple moving average is $62.20 and its 200 day simple moving average is $59.29. Cognizant Technology Solutions has a 52 week low of $37.08 and a 52 week high of $87.03.

Cognizant Technology Solutions Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 13th will be paid a dividend of $0.33 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $1.32 annualized dividend and a yield of 2.0%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 24.09%.

Wall Street Analyst Weigh In

CTSH has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. boosted their price target on shares of Cognizant Technology Solutions from $67.00 to $78.00 and gave the company an “overweight” rating in a research report on Monday, October 26th. Royal Bank Of Canada raised their price target on shares of Cognizant Technology Solutions from $47.00 to $55.00 and gave the stock a “sector perform” rating in a research note on Friday. Citigroup reissued a “neutral” rating on shares of Cognizant Technology Solutions in a research report on Monday, October 19th. TD Cowen reiterated a “hold” rating and issued a $60.00 price target (up from $54.00) on shares of Cognizant Technology Solutions in a research note on Tuesday, October 13th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $70.00 target price (up from $65.00) on shares of Cognizant Technology Solutions in a research report on Friday, September 18th. Ten investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $67.96.

Trending Headlines about Cognizant Technology Solutions

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

• Positive Sentiment: Third-quarter earnings exceeded expectations. Adjusted EPS was $1.49 versus the $1.46 consensus, while revenue reached $5.66 billion, slightly above estimates and 4.6% higher year over year. Adjusted operating margin expanded to 16.3%, and free cash flow totaled $1.58 billion. Cognizant Reports Third Quarter 2026 Results
• Positive Sentiment: Cognizant is scaling its OpenAI business. The company created an OpenAI Frontier Capability Group with more than 25,000 professionals to deliver products such as ChatGPT and Codex. The initiative could support future demand as enterprises move generative AI into production, although no immediate revenue impact was provided. Cognizant OpenAI announcement
• Positive Sentiment: Shareholder returns remain supportive. Cognizant declared a quarterly dividend of $0.33 per share and repurchased approximately $258 million of stock during the quarter.
• Neutral Sentiment: Analyst views are mixed. Morgan Stanley lowered its price target to $68 and maintained an “equal weight” rating, while RBC raised its target to $55 but kept a “sector perform” rating.
• Negative Sentiment: Bookings raised concerns about future growth. Third-quarter bookings declined 7% year over year, and roughly four percentage points of reported revenue growth came from acquisitions and resold products, implying slower underlying growth. Cognizant bookings and AI analysis
• Negative Sentiment: 2026 guidance was narrowed to a modest growth range. Cognizant now expects constant-currency revenue growth of 4.0% to 4.4%, while ETFs were reported as net sellers, adding near-term trading pressure.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a global information technology services and consulting company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company serves businesses across industries including financial services, healthcare, life sciences, manufacturing, retail and communications.

Cognizant’s services include consulting, application development and modernization, cloud computing, data and artificial intelligence, digital engineering, cybersecurity and business process services.