Cognizant Technology Solutions (NASDAQ:CTSH) Stock Gets Price Target Reduction from Morgan Stanley

Key Points

• Morgan Stanley cut Cognizant’s price target from $70 to $68 while maintaining an “equal weight” rating, implying approximately 3.5% upside from the stock’s $65.69 price.
• Analyst sentiment remains mixed: Cognizant has a consensus “Hold” rating, with 10 Buy ratings and 14 Holds, and an average price target of $67.96. Recent targets range from $64 at Mizuho to $80 at Guggenheim.
• Cognizant exceeded quarterly earnings and revenue expectations, reporting $1.49 in EPS and $5.66 billion in revenue, but bookings declined 7% year over year and revenue-growth guidance was narrowed.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its price target reduced by equities research analysts at Morgan Stanley from $70.00 to $68.00 in a report released on Friday, Benzinga reports. The brokerage currently has an "equal weight" rating on the information technology service provider's stock. Morgan Stanley's target price would suggest a potential upside of 3.52% from the stock's current price.

Several other research firms also recently weighed in on CTSH. Mizuho set a $64.00 target price on Cognizant Technology Solutions in a research report on Thursday, August 6th. Guggenheim reaffirmed a "buy" rating and set a $80.00 price target (up from $65.00) on shares of Cognizant Technology Solutions in a research report on Tuesday. Wells Fargo & Company upped their price objective on Cognizant Technology Solutions from $67.00 to $77.00 and gave the stock an "overweight" rating in a report on Monday. Citigroup restated a "neutral" rating on shares of Cognizant Technology Solutions in a research note on Monday, October 19th. Finally, Needham & Company LLC set a $78.00 target price on shares of Cognizant Technology Solutions in a research report on Monday. Ten research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat, Cognizant Technology Solutions currently has a consensus rating of "Hold" and an average price target of $67.96.

Cognizant Technology Solutions Trading Up 5.1%

Cognizant Technology Solutions stock traded up $3.17 during midday trading on Friday, reaching $65.69. 2,931,503 shares of the stock traded hands, compared to its average volume of 7,939,333. The firm has a market cap of $29.59 billion, a PE ratio of 14.15, a price-to-earnings-growth ratio of 1.24 and a beta of 0.86. The company has a current ratio of 2.18, a quick ratio of 2.18 and a debt-to-equity ratio of 0.11. The company has a 50-day simple moving average of $62.12 and a two-hundred day simple moving average of $59.39. Cognizant Technology Solutions has a 12-month low of $37.08 and a 12-month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The information technology service provider reported $1.49 EPS for the quarter, topping the consensus estimate of $1.46 by $0.03. Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The business had revenue of $5.66 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter in the previous year, the firm posted $1.39 earnings per share. The company's quarterly revenue was up 4.6% compared to the same quarter last year. Research analysts expect that Cognizant Technology Solutions will post 5.74 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors have recently bought and sold shares of CTSH. Marquette Asset Management LLC boosted its holdings in Cognizant Technology Solutions by 183.9% during the third quarter. Marquette Asset Management LLC now owns 545 shares of the information technology service provider's stock worth $31,000 after purchasing an additional 353 shares during the last quarter. Pension & Wealth Management Advisors Inc. purchased a new position in shares of Cognizant Technology Solutions during the third quarter worth approximately $35,000. Signature Equity Partners LLC grew its holdings in shares of Cognizant Technology Solutions by 102.4% in the first quarter. Signature Equity Partners LLC now owns 599 shares of the information technology service provider's stock worth $37,000 after purchasing an additional 303 shares during the last quarter. Alpine Bank Wealth Management bought a new position in Cognizant Technology Solutions in the 3rd quarter worth $38,000. Finally, Salomon & Ludwin LLC purchased a new stake in Cognizant Technology Solutions in the third quarter worth $40,000. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Key Cognizant Technology Solutions News

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

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. Cognizant reported adjusted EPS of $1.49 versus the $1.46 consensus and revenue of $5.66 billion versus $5.64 billion expected. Revenue increased 4.6% year over year, while adjusted operating margin expanded to 16.3%. Cognizant Reports Third Quarter 2026 Results
• Positive Sentiment: Cognizant is expanding its artificial-intelligence offering. The company created an OpenAI Frontier Capability Group with more than 25,000 professionals to deliver OpenAI products, including ChatGPT and Codex, to enterprise customers. The initiative may strengthen Cognizant’s positioning as businesses move AI applications into production, although no immediate financial contribution was provided. Cognizant OpenAI announcement
• Positive Sentiment: Shareholder returns remain a support. Cognizant declared a quarterly dividend of $0.33 per share, or $1.32 annualized, and repurchased approximately $258 million of stock during the quarter.
• Neutral Sentiment: Financial performance was mixed beneath the headline beat. Financial Services revenue grew 12%, and full-year adjusted EPS guidance was set at $5.72–$5.79. However, 2026 constant-currency revenue-growth guidance was narrowed to 4.0%–4.4%, while third-quarter bookings declined 7% year over year; trailing-12-month bookings rose only 4% to $28.7 billion. Cognizant bookings report
• Negative Sentiment: Royal Bank of Canada remains cautious. RBC raised its price target from $47 to $55 but kept a “sector perform” rating. The new target remains below the recent trading level, signaling limited upside in the bank’s view. ETF net selling and concerns that reported growth benefited from acquisitions and resold products may also weigh on sentiment.

Cognizant Technology Solutions Company Profile

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.

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